Favourable jobs data and easing treasury yields boosted Wall St to a positive close on Wednesday with the Dow Jones snapping a losing streak by adding 127 points or 0.4%, while the S&P500 rose 0.8% and the tech-heavy Nasdaq lifted 1.3%. US private payrolls data showed the economy added 89,000 private payrolls last month which was well below the forecasted 160,000 in a sign the tight labour market in the US is starting to ease.

Over in Europe, markets closed lower on Wednesday amid dampened global sentiment over rising interest rates and the outlook for inflation to remain stubbornly high. 

Locally on Wednesday, the ASX200 extended its red run, closing the session down 0.77% to an 11-month low as financial and communication services stocks weighed on the key index, while the utilities sector was the only sector to close the midweek session higher. 

Lithium takeover target Liontown Resources added 1% on Wednesday after Gina Rinehart further increased her stake in the near-term lithium producer, taking her holding to 14.7%

Biotech company Noxopharm soared 85% on Wednesday after announcing its CRO-67 preclinical drug candidate for the treatment of pancreatic cancer has been granted orphan drug designation status by the FDA in the US.

What to watch today: 

• Ahead of the local trading session here in Australia, the SPI futures are anticipating the ASX to open Thursday’s session 0.45% higher on the back of Wall Street’s recovery overnight.
• On the commodities front this morning oil is down 4.96% at US$84.80/barrel, gold is down just 0.09% at US$1821.10/ounce and iron ore is flat at US$119.50/tonne.

Trading Ideas: 

• Bell Potter has initiated coverage of Clinuvel Pharmaceuticals (ASX:CUV) with a buy rating with a 12-month price target of $24/share. Bell Potter sees the company’s distribution of Scenesse, the only approved treatment for patients suffering from a rare inherited disease called EPP, as a strong growth outlet over the coming years, with a 3-year Compound Annual Growth Rate of 34% to $78m in FY23. The company also has diversification beyond Scenesse through conducting a range of pharmaceutical R&D activities and new product launches to diversify its commercial opportunities.
• And Bell Potter has increased the price target on Adacel Technologies (ASX:ADA) from 75cps to 80cps and maintain a buy rating on the leading global provider of simulation and control systems for civil aviation and defence sectors following the company announcing it has been awarded a new contract from the Federal Aviation Administration valued at US$59m over five years. Adacel lost this services contract to a competitor 6-years ago and the new contract award represents the hardware component only and does not include any software so another contract may be forthcoming for the upgrade of the software.

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