Highlights

  • In New York on Monday, the Nasdaq Composite rose 1.05 per cent to 27,477.31, the S&P 500 added 0.66 per cent to 7,773.99 and the Dow Jones Industrial Average gained 0.18 per cent to 51,267.90.
  • Robinson fell almost 11 per cent and Nike slipped close to 3 per cent after a downgrade.
  • CSL will pay US$355 million upfront and up to US$1.2 billion in commercial milestones, and the two companies will split profits 55 to 45 in CSL's favour.
  • The broader market finished Monday's holiday-thinned session little changed at about 8,686 points, with public holidays in NSW and Queensland keeping volumes light.

Australian investors head into Tuesday's session with a supportive lead from Wall Street, where technology stocks pushed the Nasdaq to a fresh record overnight, and with blood plasma giant CSL (ASX:CSL) still in focus after unveiling its biggest drug licensing bet in some time.

In New York on Monday, the Nasdaq Composite rose 1.05 per cent to 27,477.31, the S&P 500 added 0.66 per cent to 7,773.99 and the Dow Jones Industrial Average gained 0.18 per cent to 51,267.90. The small-cap Russell 2000 climbed 0.72 per cent.

Wall Street Sets a Firmer Lead

The gains came despite another lift in bond yields. The US 10-year Treasury Yield climbed to about 5.315 per cent, a fresh 52-week high, as longer-dated bonds sold off harder than shorter maturities. A soft September jobs report has eased fears that the Federal Reserve will need to raise rates again, which helped growth stocks, but heavy government borrowing and stubbornly high real yields continue to weigh on the broader market.

Among the US movers, software company PTC jumped about 33 per cent after Schneider Electric agreed to buy it in a deal valued at US$22.6 billion, while logistics group C.H. Robinson fell almost 11 per cent and Nike slipped close to 3 per cent after a downgrade.

CSL Puts Lixudebart in Focus

The next key event offshore is the release of minutes from the Fed's September meeting, due on Wednesday US time, which traders will scour for clues on the rate outlook.

Closer to home, CSL remains the headline stock. The company has struck a global Partnership with Basel-based Alentis Therapeutics to develop and commercialise lixudebart, an antibody being developed for rare kidney and liver diseases. CSL will pay US$355 million upfront and up to US$1.2 billion in commercial milestones, and the two companies will split profits 55 to 45 in CSL's favour.

Smaller Names Add to the Watchlist

CSL will fully fund the ongoing phase 2 trial in ANCA-associated vasculitis with rapidly progressive glomerulonephritis, a planned phase 3 study in that condition, and new phase 2 trials in focal segmental glomerulosclerosis and primary sclerosing cholangitis. Research chief Bill Mezzanotte said the drug could become an important new therapeutic option. Investors gave the deal a cautious thumbs up on Monday, with CSL shares closing about 0.9 per cent higher in a flat market.

The broader market finished Monday's holiday-thinned session little changed at about 8,686 points, with public holidays in NSW and Queensland keeping volumes light. Healthcare was the best-performing sector, while consumer discretionary stocks lagged.

At the small end of the market, a cluster of junior resources names were flagged in They include Parbo Resources (ASX:PRB), the Murchison gold and copper explorer that listed on September 22 after a $5 million IPO and has completed a maiden aircore program at its Brians Mill prospect, with assays expected later this month. Moonlight Resources (ASX:ML8), a gold and rare earths-uranium explorer, recently applied to quote about 2.65 million new shares.

What Comes Next

Also on the list were Alice Queen (ASX:AQX), which holds gold and copper-gold projects in Fiji, the Torres Strait and NSW, gold and critical minerals explorer Dalaroo Metals (ASX:DAL), and battery anode materials developer EcoGraf (ASX:EGR), which applied to quote almost 16 million new shares issued on Monday. The specific announcements driving interest in Alice Queen and Dalaroo could not be independently confirmed at the time of writing.

On the Commodity front, Brent Crude was hovering around US$101 a barrel, gold near US$4,131 an ounce and copper about US$14,285 a tonne on Monday, so miners and energy stocks will again be sensitive to any overnight swings when trading begins.

What Could Set the Next Move?

Attention now turns to the next operational, clinical, exploration or regulatory milestones outlined by CSL, with upcoming results and execution set to determine how the current development pathway progresses.