AU Morning Wrap: ASX Rises, ANZ Tips Cash Rate Peak at 4.35%

Moomoo News AU wrote a column · Jun 1, 2023 19:33

G'day, mooers! Check out the latest news on today's stock market!
• US stocks hit 9-month high on debt ceiling optimism
• ASX rallies as mining stocks jump
• Stocks to watch: Adair, Pilbara Minerals, BHP
- Moomoo News AU

AU Morning Wrap: ASX Rises, ANZ Tips Cash Rate Peak at 4.35%

Wall Street Summary

Major U.S. indexes jumped on the first trading day of June as investors cheered progress toward a deal to avert a government default.

The tech-heavy $Nasdaq Composite Index(.IXIC.US)$ led the way, adding 1.3% and building on strong gains from May. The $S&P 500 Index(.SPX.US)$ added 1%. The $Dow Jones Industrial Average(.DJI.US)$ added 153 points, or 0.5%.

AU Market Watch

The Australian sharemarket climbed at the open, buoyed by gains on Wall Street and a rally in material stocks.

The $S&P/ASX 200(.XJO.AU)$ gained 0.7 per cent to 7,160 at the open, climbing for a second day. All 11 sectors advanced, led by a 1.6 per cent bounce in materials.

$Pilbara Minerals Ltd(PLS.AU)$, $Newcrest Mining Ltd(NCM.AU)$ and $Sandfire Resources Ltd(SFR.AU)$ all paced the advance, each up by more than 2 per cent. The mining giants also advanced with $BHP Group Ltd(BHP.AU)$ up 1.9 per cent and $Rio Tinto Ltd(RIO.AU)$ up 1.5 per cent.

Copper led base metals higher in London and iron ore climbed 3.9 per cent.

Among the biggest movers on the ASX, Adairs slumped 19 per cent to $1.525 after it released a trading update to the market.

Stocks to Watch

$Adairs Ltd(ADH.AU)$: Retailer Adairs lowered earnings guidance for fiscal 2023 to between $62 million and $65 million, from $70 million to $80 million previously forecast. Group sales are projected to add a maximum of $622 million, from a maximum of $665 million.

$ANZ Group Holdings Ltd(ANZ.AU)$: ANZ have raised their terminal cash rate forecast to 4.35 per cent, adding that a rate increase is possible next week.

That's up from a previous forecast of 4.1 per cent. The current Reserve Bank cash rate is 3.85 per cent.

$Rio Tinto Ltd(RIO.AU)$: Rio Tinto plans to invest $395 million in a seawater desalination plant in the Pilbara, Western Australia, to support future water supply for the company's coastal operations and communities in the region.

$Coles Group Ltd(COL.AU)$: Coles will set $25 million in additional provisions for underpaying managers in its retail businesses.

The supermarket chain group will conduct more remediation relating to the reconciliation of available records of the days and hours of work of its managers.

$Synlait Milk Ltd(SM1.AU)$: NZ dairy processer Synlait Milk intends to divest its Dairyworks and Talbot Forest Cheese businesses as the company reviews its assets.

The divestments will allow Synlait to focus solely on growing the highest margin segments of its value-add, B2B advanced nutrition and food service businesses.

Synlait has engaged investment banking firm Jarden as an advisor and proceeds of the potential sales would be used to pay down debt.

Trading Ex-div: None

Dividends Paid: $Evolution Mining Ltd(EVN.AU)$

Listing: None

Source: Dow Jones Newswires, AFR

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