Good morning and welcome to the Morning Outlook. I’m Rachael Jones reporting live from Kalkine
TV Sydney studio.
(1)The Australian share market is set to open flat this morning following a poor overnight
trading session on Wall Street. The domestic market is expected to see weakness in commodity
shares following renewed COVID-19 restrictions in China, which may limit gains on the resource-heavy
ASX. The latest ASX Futures are indicating that the ASX 200 may open 0.05% lower or at
a 103.3-point discount to the last close. On Tuesday, the benchmark ASX 200 index closed
4.1 points higher at 6,606.3.
(2) KMD brands which has Kathmandu and Rip Curl has reported their figures and once again
reiterated that the year-on-year impact of COVID on first half EBITDA was approximately
$35 million. Trading conditions have improved in the second half, however COVID continued
to impact footfall, particularly in the third quarter, and caused sporadic store closures
due to staff availability. Same store sales year-to-date remain positive for both Rip
Curl and Kathmandu, despite the significant COVID impacts on retail. The retailer expects
total sales to be in the range of $995 to $965 million for the year ending 31 July 2022.
Underlying EBITDA is expected in the range of $88 million to $94 million.
(3) Mach7 Technologies, today provided an update on the patent infringement lawsuit
brought by AI Visualize, Inc., a Texas corporation. In June they received notice from the United
States District Court for the District of Delaware that it granted Mach7’s request
to dismiss all claims asserted by AI Visualize. The Court based its dismissal on a finding
that AI Visualize’s patents were not eligible for patenting. AI Visualize’s claims of
wilful infringement was therefore dismissed.
Now it’s time for a short break – but stay tuned for more news set to effect
the trading day. @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
Welcome back to the Morning Outlook report. On Wall Street,
(4) the Dow Jones slipped 0.6%, the S&P 500 dipped 0.9%, and the NASDAQ ended 0.95% lower.
The US investors were anxious ahead of the release of a key US inflation report. A high
inflation data would add pressure on Fed to fasten its already aggressive pace of rate
hikes. In Europe, the Stoxx 50 rose 0.4%, the FTSE surged 0.2%, the CAC gained 0.8%,
the DAX ended 0.6% higher.
MSCI's broadest index of Asia-Pacific shares outside Japan ended 1.04% lower. Japan's Nikkei
shed 1.77%. Oil prices fell sharply on Tuesday as demand concerns weighed heavily on the
prices. The prices declined due to strong dollar, fresh COVID-19 curbs in China and
concerns of a global economic slowdown.
(5) Brent crude futures finished 7.1% lower at US$99.49 a barrel. WTI crude fell
7.9% to US$95.84. Gold prices dipped as looming interest rate hikes weighed on the yellow
metal.
(6) Gold fell with spot prices down 0.4% to US$1,726.89 an ounce. Meanwhile, cryptocurrency
prices declined, with
(7) bitcoin last down 0.9% to US$19,769.95. Well, that’s all for our Morning Outlook report
here on Kalkine TV. Have a great day trading and stay tuned for more market updates and
economic news live throughout the day. This is Rachael Jones signing off for now.