AU Morning Wrap: Traders Slash RBA Rise Bets; Neuren Shares Surge 18%

Moomoo News AU wrote a column · Jul 14, 2023 08:36

G'day, mooers! Check out the latest news on today's stock market!
• Tech stocks lead US market higher after inflation falls
• ASX rises; Neuren shares surges 18%
• Stocks to watch: Neuren, BHP, WiseTech
- Moomoo News AU

AU Morning Wrap: Traders Slash RBA Rise Bets; Neuren Shares Surge 18%

Wall Street Summary

Stocks marched higher Thursday after investors received data—for a second consecutive day—showing that inflation is moderating to its slowest pace in years.

Shares of Google parent Alphabet were among the market's best performers, rising 4.7% after updating its Bard chatbot. That helped power the $Nasdaq Composite Index (.IXIC.US)$ to a 1.6% gain, while the $S&P 500 Index (.SPX.US)$ added 0.8%. The blue-chip $Dow Jones Industrial Average (.DJI.US)$ edged up 47.71 points, or 0.1%.

AU Market Watch

The $S&P/ASX 200 (.XJO.AU)$ rose 0.4 per cent, up 30.2 points to 7277.1 at market open after technology stocks paced gains in New York overnight.

There has also been another significant downward shift in money market expectations of where the Reserve Bank cash rate is heading as the rally in bonds gathered pace on Wall Street. The market pricing of an August cash rate increase has dropped to 43 per cent from over 60 per cent on Monday.

The materials sector was the best performer, up 1.2 per cent. $BHP Group Ltd (BHP.AU)$ shares rallied 2 per cent, $Fortescue Ltd (FMG.AU)$ added 1.4 per cent, $Rio Tinto Ltd (RIO.AU)$ advanced 1.4 per cent and $South32 Ltd (S32.AU)$ was up 1.8 per cent.

ASX-listed technology stocks also rallied, up 1.4 per cent. $WiseTech Global Ltd (WTC.AU)$ shares rose 1.9 per cent, $Xero Ltd (XRO.AU)$ climbed 1.6 per cent, $Life360 Inc (360.AU)$ jumped 2.3 per cent and $Altium Ltd (ALU.AU)$ added 1.4 per cent.

Junior biotech $Neuren Pharmaceuticals Ltd (NEU.AU)$ shares surged 18.4 per cent after it signed an expanded licensing deal with its US distribution partner Acadia.

Traders Slash RBA Rise Bets

There has been another significant downward shift in money market expectations of where the Reserve Bank cash rate is heading as the rally in bonds gathered pace on Wall Street.

The market implied probability of an August rate increase has slipped to 43 per cent from over 60 per cent on Monday while there's now just a 70 per cent chance the Reserve Bank will move by September – down from greater than 100 per cent at the start of the week.

Stocks to Watch

$Patriot Battery Metals Inc (PMT.AU)$: Macquarie analysts are standing by their valuation of Patriot Battery Metals, the ASX-listed lithium play that has come under attack from an activist short seller in the United States.

As the market prepares for the lithium hopeful to reveal its maiden resource estimate at the end of the month, Macquarie analysts have maintained their bullish view of the company, which they argue could be worth as much as $C22 ($24) per share in 12 months.

$Fortescue Ltd (FMG.AU)$: Big investors in Fortescue Metals say the miner can sail through the breakdown of executive chairman Andrew Forrest's marriage and the subsequent ownership reshuffle that has given Nicola Forrest control of the single biggest Fortescue stake.

$Neuren Pharmaceuticals Ltd (NEU.AU)$: The sharemarket's hottest junior biotech Neuren has signed an expanded licensing deal with its US distribution partner Acadia.

Neuren owns the rights to the DAYBUE drug to treat Rett syndrome children.

$Leo Lithium (LLL.AU)$: ASX-listed explorer Leo Lithium will shell out $US348 million ($A520 million) to an African mining service firm to bring its lithium project to life in the West-African nation of Mali.

Leo, which is developing the Goulamina project in southern Mali, said the contract with Corica has been awarded for five years and includes 6 months of pre-production.

Trading Ex-div: None

Dividends Paid: $PT Aneka Tambang Tbk (ATM.AU)$

Listing: None

Source: Dow Jones Newswires, AFR

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more