ASX to retreat; Tesla soars; RBA minutes ahead

Key Points

  • ASX futures are down 16 points, or 0.3 per cent.
  • Tech stocks were largely mixed in overnight trade.
  • RBA September meeting minutes ahead.

Oracle shares rise on TikTok deal

William McInnes

Oracle Corporation shares advanced 4.3 per cent to $US59.46 on Monday after it confirmed it would partner with ByteDance in order to satisfy the Trump administration’s national security concerns about the social media video app TikTok.

“Oracle confirms Secretary Mnuchin’s statement that it is part of the proposal submitted by ByteDance to the Treasury Department over the weekend in which Oracle will serve as the trusted technology provider,” the company said in a statement.

Oracle has confirmed it will partner with TikTok owner ByteDance. Bloomberg

“Oracle has a 40-year track record providing secure, highly performant technology solutions.”

The exact agreement between the pair remains unclear.

The announcment came just after Microsoft confirmed it would not buy TikTok’s US operations from ByteDance.

Serko names Claudia Batten as chairman

Sarah Turner

Serko said that Claudia Batten will become its new chairman, effective immediately.

Ms Batten will replace Simon Botherway who will remain on the software company’s board as a non-executive director.

Ms Batten has been acting chair since March when Mr Botherway temporarily stepped down for medical reasons.

Tesla shares soar on Musk tweet, Nikola rebounds

William McInnes

Tesla shares soared in overnight trade after investors returned from the weekend eager to take advantage of its recent sell-off following a tweet from founder Elon Musk on Saturday.

Mr Musk hinted a major announcement regarding its batteries would be coming within the next week.

Tesla’s shares shot 12.6 per cent higher to $US419.62 a share on Monday, recouping its losses from the previous week.

Rival electrical vehicle manufacturer Nikola also saw its stock rise after a near 40 per cent drop in the back end of last week following a scathing short-seller report from Hindenburg Research that labelled the company an “intricate fraud”.

Its share rebounded slightly, rising 11.4 per cent to $US35.79 a share, on Monday after a detailed response to Hindenburg’s report.

Nikola tumbled in after hours trading however after Bloomberg reported the Securities and Exchange Commission would probe the startup over the Hindenburg’s claims.

Wall Street rises as Tesla soars

Here are the overnight market highlights:

  • AUD +0.1% to 72.91 US cents
  • On Wall St: Dow +1.2% S&P 500 +1.3% Nasdaq +1.9%
  • In New York: BHP +1.2% Rio -0.1% Atlassian +0.7%
  • Tesla +12.6% Oracle +4.3% Microsoft +0.7% Apple +3%
  • In Europe: Stoxx 50 flat FTSE -0.1% CAC +0.4% DAX -0.1%
  • Spot gold +0.8% to $US1956.31/oz at 2.36pm New York time
  • Brent crude -0.3% to $US39.71 a barrel
  • US oil +0.3% to $US37.43 a barrel
  • Iron ore +1.4% to $US130.17 a tonne
  • 2-year yield: US 0.13% Australia 0.19%
  • 5-year yield: US 0.26% Australia 0.35%
  • 10-year yield: US 0.67% Australia 0.86% Germany -0.48%
  • US prices as of 4.24pm New York

Read Timothy Moore’s Before the Bell at afr.com.

Good morning

Good morning and welcome to Markets Live for Tuesday.

This blog is not intended as investment advice.

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