Live: Firmus targets $7.1b raise in blockbuster IPO
The ASX is set to open higher after Wall Street recovered from early losses.
The 10-year Treasury yield retreated sharply after hitting a 24-year high near 5.34 per cent.
Oil prices surged, with Brent crude up more than $US4.
Follow the day's financial news and insights from our specialist business reporters on our live blog.
Disclaimer: this blog is not intended as investment advice.
Pinned
Market snapshot
By Lin Lin
By Lin Lin
- ASX futures: -0.5% to 8,678 points
- Australian dollar: steady at 69.29 US cents
- Wall Street: Dow Jones (+0.04%), S&P 500 (+0.2%), Nasdaq Composite (+0.04%)
- Europe: Stoxx 600 (-1.3%), DAX (-1.03%), FTSE (-1.68%)
- Spot gold: +0.5% to $US4,177/ounce
- Oil (Brent futures): +4.9%at $US102.83/barrel
- Iron ore: -1.3% to $US92.25/tonne
- Bitcoin: -0.04% to $US84,592
- 10-year bonds: US 5.24%, Australia 5.4%
Prices current at around 7:30am AEST
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Fuel
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Oil jumps 5%
By Lin Lin
By Lin Lin
Oil prices are higher by 5.3% as at 7.45 am, trading at $103 US dollars a barrel.
The move comes after a WSJ report that the US was sending a third aircraft carrier and up to 10,000 more troops to the Middle East as President Donald Trump weighed resuming strikes on Iran after the US midterm elections.
The US President then told reporters he was considering his options.
"Now I have to make a decision. They'll either sign a very fair deal or they won't exist any longer," he said.
It also comes as China has reportedly suspended fuel exports.
While crude continues to reach the market, diesel and other refined fuels remain in short supply following damage in refinery infrastructure in the Gulf and Russia.
Key Event
Firmus prices IPO at $11 a share, targeting $7.1b raise
By Lin Lin
By Lin Lin
Australian data centre operator Firmus has priced its IPO at $11 a share, aiming to raise $7.1 billion, and valuing the company's equity at $30.6 billion, according to Reuters news agency.
With analysts estimating about $30 billion in debt, Firmus would have an implied enterprise value of roughly $60 billion.
Indicative investor demand is already above the deal size, with bookbuilding due to begin next week and the stock expected to start trading on the ASX on October 23.
If completed at that size, it would be the second-largest Australian IPO on record, behind Telstra's 1997 float.
This is certainly one to watch!
With Reuters
Key Event
ASX to follow Wall Street higher
By Lin Lin
By Lin Lin
Good morning and welcome to the ABC's finance and business blog!
Lin Lin here to take you through the latest from overnight and over the next few hours.
The ASX is set to rise this morning after Wall Street recovered from early losses to finish slightly higher.
Bond markets were anxious overnight.
The US 10-year Treasury yield hit its highest level since 2002, extending a global sell-off that has pushed borrowing costs sharply higher.
It followed bond yields in Europe also moving higher. French, Italian and UK borrowing costs rose as concerns about inflation and massive government debt weighed on markets.
But US yields changed course later in the session, as buyers stepped back into the bond market and comments from the Fed's Philip Jefferson suggested the central bank could be patient before raising rates again.
That reversal in bond trading helped Wall Street recover.
Futures are pointing to the Australian market opening higher by 0.5%.
This comes after a rough day for the share market on Thursday which closed at a four-month low , falling 2% and wiping $50 billion off the boards.
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