Category: Stock Market

The Webjet Limited (ASX: WEB) share price could be one to watch for the rest of this year. Could the ASX travel share rise to $7 by the end of 2021?

One broker has a positive price target for the company.

UBS rates Webjet as a buy

Webjet is rated as a buy by the broker UBS, with a price target of $6.85. That suggests the broker believes Webjet shares can rise by not far off 10%. However, a price target is for a period of 12 months, not just for the next quarter. It may take a bit longer than December 2021 to get to $7.

Increasing vaccine coverage is helping increase UBS’ belief in the company’s prospects. It noted that the ASX travel share was doing well when there weren’t so many COVID restrictions. Once borders open again, the broker is positive on Webjet’s future, with a lot of expected demand waiting to be unleashed.

What has the ASX travel share said?

Webjet said in an update the WebBeds business was profitable in July and August and is well on track to be profitable in September. It has seen “strong demand” as travel restrictions ease in North America and Europe, suggesting “significant upside” as more international markets reopen.

The company’s online travel agency business was profitable for the period from April to July, though the lockdowns in Australia and New Zealand impacted that. Online Republic was also profitable in April and May, but was also impacted by the lockdowns. Management said the company is confident that both businesses will return to profitability as soon as the Australian and New Zealand markets reopen.

The Webjet share price could be in focus when borders do open.

Management also said:

We see a world of opportunity for Webjet. All our businesses have significant potential to grow market share by expanding into new market segments and benefiting from consumers shifting to buy travel online. Transformation initiatives are underway and we are on track to reducing costs by at least 20% once the company gets back to scale. As a result, as conditions normalise, we believe our Webjet businesses will have higher market share, lower costs and greater profitability.

While the exact timing is uncertain as our growth opportunities are driven by the opening of borders, we know demand for travel will return and we are absolutely ready to capture it.

What is the UBS valuation on the Webjet share price?

The broker thinks that Webjet is going to get back to making profit in FY23.

Based on the UBS earnings estimate for the 2023 financial year, Webjet shares are valued at 20x FY23’s projected profit.

UBS has also pencilled in that Webjet could pay a dividend in FY23. How much? Not a big one, the estimate is 12.7 cents per share. Excluding franking credits, that translates to a dividend yield of 2%.

The post Can the Webjet share price fly to $7 by the end of 2021? appeared first on The Motley Fool Australia.

More reading

• It hasn’t been a great week so far for the Webjet (ASX:WEB) share price
• These are the 10 most shorted ASX shares
• Why ASX 200 travel shares are having a bumper day
• Up 5%, the Webjet (ASX:WEB) share price is back to March 2020 levels. Here’s why
• Here’s why the Webjet (ASX:WEB) share price gained 29% last quarter

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The NIB Holdings Limited (ASX: NHF) share price is in the green this morning.

The private health insurer has revealed it will pay employees $1,200 annually plus a one-off $300 to work from home.

According to NIB chief people officer Martin Adlington, the payments will compensate staff for “renting” their homes for work.

“While nobody celebrates the misery and disruption caused by COVID-19, it has presented a unique opportunity to us to re-think old work practices and design principles and ultimately redefine work at NIB,” Adlington said.

“We moved quickly to transition our people to remote working at the start of the pandemic, but since then we’ve spent months planning and consulting with our people to better understand how they like to work and how we can best support them.”

The private health insurer is encouraging employees to telecommute for a minimum of 4 days each week, and only come into the office for meetings and social events.

The NIB share price is up 0.14% to $7.03 in early trading on Friday and up 16.39% year to date.

Paying staff to telecommute attracts superior talent

Many employers have already adopted working from home as a permanent post-pandemic practice, which saves them office maintenance costs. 

But this is understood to be the first time an Australian company has redirected some of those savings to staff, who bear the expenses of conducting business at home.

The scheme, called Life at NIB, came about after 79% of the insurer’s 1,200-strong workforce indicated they did their best work from home.

“Our $1,200 annual allowance will help cover some of the costs of working in a remote environment while new employees will also receive a one-off reimbursement of $300 to help them set up their workstation at home, in addition to the tech kit we supply them,” Adlington said.

“Each employee can come to an agreement with their leader on what works best for them in terms of hours and location.”

Adlington added that the flexible working policy has already helped NIB attract new talent.

“Our teams are starting to be made up of a mix of people from all different locations which is great for encouraging diversity of thought.”

OHS at home

NIB is also putting in programs to assist employees’ mental and physical health while working from home.

“In the past 12 months, we’ve learnt that just having mental health resources available is not enough and creating proactive internal marketing campaigns that leverage a range of communications channels and formats, has the most impact,” Adlington said. 

“It’s why we’ve focused on delivering experiences that foster connections and camaraderie across NIB like physical challenges, panel discussions and buddy programs.”

Establishing a “safe space” for staff to start conversations is a vital part of the telecommute policy, too.

“We are very conscious of employees continuing to experience those informal workplace connections with their colleagues and we’re constantly looking for new ways to support this, particularly during lockdown.”

NIB share price snapshot

The NIB share price has gained 62.65% over the past 12 months. This far outpaces the S&P/ASX 200 index (ASX: XJO), which is up 19.25%.

The post ASX 200 company pays staff $1,500 to work from home appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• NIB (ASX:NHF) share price struggles despite big profits in FY21
• Why the NIB (ASX:NHF) share price is heading south today
• Why this analyst is bullish on the NIB (ASX:NHF) share price
• 2 small-cap ASX shares with an edge over rivals

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Kogan.com Ltd (ASX: KGN) share price is heading in the right direction again on Friday morning.

At the time of writing, the ecommerce company’s shares are up over 1% to $9.87.

However, despite this morning’s gain, the Kogan share price is still down over 6% since the end of last week.

This may be due to concerns over the impact that proposed strikes by transport operators could have on online shopping during the peak Christmas season.

Is the Kogan share price good value?

One leading broker that appears to see a lot of value in the Kogan share price is Credit Suisse.

According to a recent note, the broker currently has an outperform rating and $14.06 price target on the company’s shares.

Based on the latest Kogan share price, this implies potential upside of 42% over the next 12 months.

What did the broker say?

Credit Suisse acknowledges that it remains unclear how quickly the company can reduce its cost base to normal levels after a disastrous FY 2021.

Due to the company’s excess inventory, Kogan reported a significant increase in storage costs. It also led to Kogan spending more on sales and marketing to help shift it. This weighed heavily on its margins and limited its full year profit to just $3.5 million from gross sales of almost $1.2 billion. This was down 86.8% year on year.

Nevertheless, Credit Suisse feels investors should look beyond the short term and focus more on its long term growth potential. This is being underpinned by Kogan’s strong market position, the shift to online shopping, and its growing private label business.

Overall, based on this, the broker feels the Kogan share price is trading at an attractive level for investors and it retains its outperform rating.

The post Top broker tips Kogan (ASX:KGN) share price to rise 42% appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• 3 fantastic ASX growth shares to buy in October
• 2 beaten-up ASX shares that could be buys in October 2021
• 2 founder-led ASX shares to buy now
• These are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX uranium shares are again finding a footing on Friday after rallying to multi-year highs in mid-September.

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN), opened 5.63% higher to 75 cents before its gains faded to a rise of 1.69%, or 72 cents.

Emerging producer Boss Energy Ltd (ASX: BOE) is catching bids today. It was up 4.26% to 24.5 cents in early trade before slipping back slightly to 24 cents.

Explorers including Peninsula Energy Ltd (ASX: PEN), Lotus Resources Ltd (ASX: LOT) and Vimy Resources Ltd (ASX: VMY) are also trading higher, up 4.76%, 2%, and 7.5% respectively.

Advanced uranium explorer Deep Yellow Limited (ASX: DYL) fell slightly before bouncing back to 93 cents, up 2.2%. However, recently listed 92 Energy Ltd (ASX: 92E) is down 2.13% to 69 cents.

Upbeat news for ASX uranium shares overnight

The Global X Uranium exchange-traded fund (ETF) rallied strongly overnight, up 3.9%.

The uranium ETF provides investors with access to a broad range of global companies involved in uranium mining and the production of nuclear components.

Another likely catalyst for the rise in ASX uranium shares on Friday was an announcement out of the world’s largest physical uranium fund, the Sprott Physical Uranium Trust (SPUT).

The fund actively invests in physical uranium. It takes supply off the spot market and stores it in secured locations with highly reputable uranium operators.

On 17 September, the fund had accumulated 27.7 million pounds of uranium. By comparison, uranium investment firm Yellow Cake PLC reported total spot volume for 2020 of 92.2 million pounds.

This morning, Sprott’s Twitter revealed the fund had exceeded the 30 million pounds mark.

Sprott Physical Uranium Trust exceeds 30 MILLION pounds of physical #Uranium!

300k lbs added today and 11.8 MILLION lbs added since August 17! #SPUT $U.UN $U.U $SRUUF #Lowcarbon #Nuclear

For more information and disclosures, please visit https://t.co/PcaG53VfN5 pic.twitter.com/l3JTNeewkv

— Sprott Asset Management (@Sprott) October 7, 2021

https://platform.twitter.com/widgets.js

Sprott’s buying frenzy has been viewed as the catalyst that pushed uranium prices from US$30/lb in mid-August to 9-year highs of approximately US$50/lb by 17 September.

Uranium prices have since cooled off, trading around US$40/lb.

Morgan Stanley isn’t convinced the supply-demand fundamentals have changed in a manner to justify the recent price rise.

While experts are divided on current uranium prices, there’s no denying that more countries are showing interest in nuclear reactors.

The post Why ASX uranium shares are bouncing back on Friday appeared first on The Motley Fool Australia.

More reading

• What’s going on with the Deep Yellow (ASX:DYL) share price today?
• Boss Energy (ASX:BOE) share price wobbles after operational update
• Deep Yellow (ASX:DYL) share price slides 4% despite major ore reserve milestone
• Which ASX 300 shares are on the move for the start of the week?
• Which ASX shares are set to finish the week as the top movers on the ASX 300?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It was a mottled start to the new financial year for the ASX-listed fintech shares. Many outperformed the S&P/ASX 200 Index (ASX: XJO) over the 3-month period. However, some went on a wayward path that led investors to no avail.

Many so-called ‘fintechs’ are categorised by the Australian Stock Exchange as either information technology shares or financial shares. Taking a look at both these sectors, these two dominant sectors were the third and fifth-best performing at the end of the first quarter — delivering 4.1% and 3.4% respectively.

Hence, it is worth a closer inspection to understand where the winners and losers were located.

Winning ASX fintech shares in the first quarter

Let’s start off with the good news — there were plenty of market-beating returns to be had across the sector. Potentially investors are gearing up for the reopening of the economy as vaccination targets draw closer.

As more money circulates through the economy, many fintech companies will be clipping the ticket on transactions. This brings us to the top-performing ASX fintech share during the quarter — EML Payments Ltd (ASX: EML).

Shares in the payments company rallied through August following an update on its regulatory concerns. EML disclosed it had reached an agreement on a remediation plan to address the discrepancies present in PFS Card Services (Ireland) Limited (PCSIL).

This gave shareholders reassurance during the quarter that the worst may be behind it. Although, an announcement released late yesterday afternoon indicates that the Central Bank of Ireland has proposed certain limits to PCSIL programs.

Moving along, the second-best performing ASX fintech share in the first quarter was none other than Tyro Payments Ltd (ASX: TYR). The payment company, which specialises in payment terminals, delivered a record full-year result in August.

In FY21, Tyro processed a record $25.5 billion in transactions across its network. Meanwhile, revenue increased 13% year on year to $238.5 million. This milestone achievement resonated well with investors, resulting in the Tyro share price being bid up.

Losers of the first quarter

It appears the last quarter was a challenging one for the buy now, pay later (BNPL) sector. Out of all the fintech shares in the All Ordinaries Index (ASX: XAO), two of the worst performing were Afterpay Ltd (ASX: APT) and Sezzle Inc (ASX: SZL).

Firstly, it was a volatile quarter for the Afterpay share price. The biggest BNPL company on the ASX endured erosion to its value throughout July. That was until it announced Square Inc‘s (NASDAQ: SQ) plan to acquire the ASX fintech share. In turn, the company’s share price rebounded to finish the quarter 1.91% higher.

On the other hand, US-based payment company Sezzle suffered a deep drop in its share price throughout the first quarter. In August, the Sezzle share price took a dive following the release of its half year report.

Investors were unimpressed with the company’s net loss of US$30.4 million. This was more than triple of FY2020’s first half loss, putting a dent in sentiment.

The post How did ASX fintech shares perform in the FY22 first quarter? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• EML Payments (ASX:EML) share price on watch with CBI update
• Here’s why ASX 200 tech shares are surging today
• Which ASX 300 shares are the biggest winners and losers on Thursday?
• Why Collins Foods, Pilbara Minerals, Sezzle, & Super Retail are pushing higher

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO and EML Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, EML Payments, and Tyro Payments. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and EML Payments. The Motley Fool Australia has recommended Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The BHP Group Ltd (ASX: BHP) share price is in the green this morning after the company’s boss outlined its future plans yesterday.

BHP’s CEO Mike Henry reportedly told a conference the company expects big things for its future trade with China.

Additionally, Henry revealed the company hopes to expand its activities into new jurisdictions in a quest for more nickel, copper, and potash.

At the time of writing, the BHP share price is $37.41, 2.1% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.77% this morning.

While the effect of the news on the BHP share price is likely negligible, it’s an interesting insight into what BHP’s business may look like by the end of the decade.

Let’s take a closer look at the revelations reportedly made by BHP’s CEO.

Will these changes drive the future BHP share price?

The BHP share price is gaining today amid reports of Henry’s optimistic comments. The BHP boss made the comments at yesterday’s Financial Times’ 2021 Mining Summit.

According to the Australian Financial Review (AFR), Henry told the conference the “complementarity” between the economies of Australia was strong. Therefore, he believes recent political tensions between both nations will dwindle in the future.

Further, he noted the relationship between BHP and its Chinese suppliers and customers is better than ever. Finally, Henry reportedly said: “We do believe that there is a pretty strong growth outlook for China.”

Additionally, the Financial Times has reported Henry used the conference to comment on the company’s expansion plans.

He is said to have outlined his hopes that half of BHP’s revenue will come from future-facing commodities by 2030.

To reach that goal, BHP will look at growing into “tougher jurisdictions” in an attempt to seek out more of the commodities. However, the Financial Times quoted Henry as saying:

I want to be clear, we don’t see exploration success as being confined to moving into new jurisdictions. We know there is more copper to be found in the areas we like but it is going to be harder to find and perhaps deeper, which is going to bring different technological and financial challenges.

The company already mines minerals for the future economy, notably nickel and copper. In fact, just yesterday the Motley Fool Australia reported BHP recently signed another agreement to supply nickel for electric vehicle batteries.

Henry’s comments are unlikely to be the cause of the BHP share price gains on Friday. Still, they may have pricked the ears of investors interested in BHP’s future.

The post BHP (ASX: BHP) share price gains amid CEO’s ‘strong growth outlook for China’ appeared first on The Motley Fool Australia.

More reading

• CBA (ASX:CBA) warns iron ore price will fall by 27% in the next year
• Own BHP shares? Here’s the latest on the miner’s nickel and EV battery play
• What is the BHP (ASX:BHP) share price outlook?
• These were the 5 worst performing ASX shares in September
• Why is the BHP (ASX:BHP) share price trading at 10-month lows?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is having a mixed morning on Friday.

In morning trade, the banking giant’s shares are up ever so slightly to $27.83.

This compares to a 0.7% gain by the S&P/ASX 200 Index (ASX: XJO).

Why is the ANZ share price underperforming the ASX 200?

The ANZ share price isn’t the only one in the banking sector underperforming the ASX 200 today.

Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) shares are actually dropping today despite the market’s solid gains.

This mirrors what happened on Wall Street overnight. Although the Dow and Nasdaq stormed higher, the financial sector acted as a drag on proceedings.

BNPL news

Not even the announcement of plans to take on Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) in the buy now pay later (BNPL) market has been able to boost the ANZ share price higher.

This morning ANZ announced that it will partner with Visa to launch a new feature for credit card customers.

Once it is launched in 2022, the new Visa Instalments feature will provide ANZ credit card customers with an option at the checkout or online to make purchases through interest free instalments across a wide range of terms.

ANZ’s Head of Cards and Personal Lending, Mike Shurlin, said: “We want to provide our customers with flexibility in how they manage their purchases, which is why we are pleased to work with Visa on launching this new feature.”

“We know many of our customers will use this option for certain purchases while choosing a standard credit card transaction for other items. Having that choice with no need for additional steps means they have a simple and secure feature through their existing card.”

“We have partnered with Visa many times in the past and share a focus on building features that make customers’ lives easier while maintaining high security standards,” he concluded.

The ANZ share price is up 21% in 2021.

The post ANZ (ASX:ANZ) share price flat despite BNPL plans appeared first on The Motley Fool Australia.

More reading

• What to expect from the ANZ (ASX:ANZ) FY 2021 result this month
• What happened for the ANZ share price in the FY22 first quarter?
• ASX 200 bank shares fall flat amid flurry of new regulations
• Why the ANZ (ASX:ANZ) share price has lagged the ASX 200
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Starpharma Holdings Limited (ASX: SPL) share price is on course to end the week on a positive note.

In morning trade, the dendrimer products developer’s shares are up 4.5% to $1.25.

Why is the Starpharma share price rising?

The catalyst for the rise in the Starpharma share price on Friday has been the release of an announcement relating to its Viraleze antiviral nasal spray.

According to the release, the company has signed a sales and distribution agreement for Viraleze with Admenta Italia Group. It is a leading pharmaceutical retail and wholesale distribution company in Italy.

The company notes that the Italian over the counter (OTC) pharmaceutical market is the third largest in Europe after Germany and the UK. Admenta is a leader in the market operating over 260 pharmacies under its LloydsFarmacia brand, including 13 parapharmacies and 50 franchising pharmacies.

The release explains that the Viraleze product is expected to be available to Italian consumers in stores and via LloydsFarmacia’s online platform this quarter. Under the agreement, Starpharma will supply Viraleze and Admenta will be responsible for distribution, sales, and marketing of the product in the country.

What is Viraleze?

Viraleze is a broad-spectrum antiviral nasal spray which is applied in the nose to provide a physical barrier between viruses and the nasal mucous membrane. The product traps and irreversibly inactivates virus, including SARS-CoV-2.

Positively, the antiviral agent in Viraleze, known as SPL7013, has been shown in laboratory studies to have potent antiviral and virucidal activity in multiple respiratory viruses and multiple variants of SARS-CoV-2. This includes the inactivation of >99.9% of the highly infectious Delta variant.

Starpharma’s CEO, Dr Jackie Fairley, commented: “We are very pleased to have partnered with Admenta in Italy and we look forward to having Viraleze available soon to Italian consumers, through pharmacies as well as through the leading LloydsFarmacia online platform.”

The post Here’s why the Starpharma (ASX:SPL) share price is charging 4% higher today appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX biotech shares in September
• Starpharma (ASX:SPL) share price surges 5% on United States patent news
• Why Accent, Calix, Pilbara Minerals, & Starpharma shares are racing higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The choppy week is coming to a bright conclusion as the Woolworths Ltd (ASX: WOW) dividend will reach the accounts of shareholders on Friday.

The Woolworths share price closed at $39.70 on Thursday, down around 5.5% since its late-August highs of $42.3.

What happened to the Woolworths share price?

The recent weakness behind the Woolworths share price is broadly in line with the volatile S&P/ASX 200 Index (ASX: XJO).

Market moving headlines such as China’s Evergrande crisis, tumbling iron ore prices, rising inflation and United States’ debt ceiling has weighed on the broader market and investor sentiment.

As such, the ASX 200 has slipped 4.8% since mid-August all-time highs of 7,633.

Despite the shortcomings of the Woolworths share price, the company delivered a well-rounded FY21 performance following its successful divestment of Endeavour Group Ltd (ASX: EDV). 

Its full-year results highlighted a 5.7% increase in group sales to $67.278 million, a 22.9% jump in net profit after tax to $1.972 million and a final dividend of 55 cents.

The overall Woolworths dividend for FY21 came in at 108 cents per share, up 14.9% on FY20.

Looking ahead, the company said that it experienced strong sales growth in the first eight weeks of FY22, increasing 4.5% against the prior corresponding period.

It flagged that Big W sales have been impacted by COVID-19 restrictions, and expects earnings before interest and taxes (EBIT) in the first half to be materially below 1H FY21.

Group COVID-related costs were also creeping up slightly, increasing to 0.5% of sales in the first eight weeks of FY22.

What else do investors need to know about the Woolworths dividend?

The default option for dividends is a cash payment.

But for investors that elected to participate in Woolworths’ dividend reinvestment plan, the new shares will be priced at $39.63.

The new shares are expected to be issued to participants on Friday.

The post The final Woolworths (ASX:WOW) dividend will be paid today. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 3 ASX shares protected from rising inflation and interest rates
• 5 defensive ASX shares to guide you through the market correction
• What happened for the Woolworths (ASX:WOW) share price in the FY22 first quarter?
• Woolworths (ASX:WOW) share price struggles amid staff shortages

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX investors are readying up for the final trading day this week, with ASX futures indicating a further rise in the benchmark index. This follows strength in the US stock market overnight amid a short-term debt limit extension deal being reached.

At the time of writing, futures are suggesting a 0.53% bump in the S&P/ASX 200 Index (ASX: XJO) at the open.

What happened on the US stock market overnight?

The US market swiftly ascended in the early moments of trade last night. Pivotally, lawmakers in the United States senate revealed a proposed agreement to quell the debt defaulting fears. According to the Financial Times, the proposal would see the debt limit raised by $480 billion. In turn, the government would have enough funds to get itself through to early December.

Across the market, investors witnessed a 0.83% climb in the S&P 500 Index (SP: .INX). Meanwhile, the Dow Jones Industrial Average Index (DJX: .DJI) gained 0.98% to 34,754.94 points. However, the standout was the Nasdaq Composite (NASDAQ: .IXIC), as it rallied 1.05% during the Thursday night session.

Some of the best performers overnight included Twitter Inc (NYSE: TWTR), Advanced Micro Devices Inc (NASDAQ: AMD), and Cisco Systems Inc (NASDAQ: CSCO). These companies gained 4.4%, 2.7%, and 2.0% respectively.

Commenting on the US stock market developments last night, chief investment officer at UBS Global Wealth Management Mark Haefele said:

A temporary deal should help reduce debt-ceiling related market volatility over the next few weeks as attention shifts toward December.

All in all, 10 out of the 11 industry sectors across the US market finished higher last night, setting a positive tone for Australian shares on Friday.

Ahead on the ASX today

Many investors will be watching the energy sector closely today after oil prices got a boost overnight. According to Bloomberg, the price of crude oil rose 1.8% to US$78.84 a barrel. As a result, the likes of Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be in for a green session today.

In some not-so-positive news, EML Payments Ltd (ASX: EML) will have shareholders on the edge of their seats at the open on Friday. The payments company released an announcement late yesterday afternoon indicating further potential implications from the Central Bank of Ireland. This is in regards to the company’s Prepaid Financial Services (Ireland) Limited business.

Finally, ASX-listed tech shares will be front of mind today. This is on the back of the strong showing by tech names on the US stock market last night.

The post What happened on the US stock market last night? appeared first on The Motley Fool Australia.

More reading

• October is ‘crash’ month: Will history repeat for the ASX 200?
• CBA (ASX:CBA) warns iron ore price will fall by 27% in the next year
• 5 things to watch on the ASX 200 on Friday
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Motley Fool contributor Mitchell Lawler owns shares of Advanced Micro Devices and EML Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Advanced Micro Devices, EML Payments, and Twitter. The Motley Fool Australia owns shares of and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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