Morning Wrap: ASX 200 flat, Nasdaq pops after SpaceX surges 8% on positive quarterly, Brent hovering around five-month highs

In a nutshell:

• Major US benchmarks higher and finished near best levels, led by AI and chip stocks after SpaceX results topped estimates

• Oil stayed near five-month highs as Iranian attacks on Gulf shipping intensified, though weekly Persian Gulf crude flows have recovered to around prewar levels

• UK inflation jumped to 3.5% in September, above estimates and the highest in almost a year, fuelling bets on a Bank of England hike

Let's dive in.

• Major US benchmarks higher, finished off best levels and extended gains in late trade as Middle East escalation fears eased

• The Nasdaq made largest gain after SpaceX’s quarterly results revived the AI trade and pushed the Philadelphia Semiconductor index up 2%

• Brent made a 0.5% gain to US$109.62 a barrel, close to five-month highs, as investors weighed mixed reports on diplomatic progress between the US and Iran (TE)

• Stocks briefly pared gains and oil climbed after a Reuters report that the State Department was preparing ordered departures of some staff and families from US embassies across the Gulf (BBG)

• Persian Gulf crude and condensate flows hit 24.6m barrels a day in the week to 18 October per Kpler, though October-to-date averages remain below prewar levels despite more frequent Iranian ship attacks (BBG)

• The US government is leaning more on yield-sensitive investors to fund its $32tn bond market, which has grown seven-fold in two decades, as benchmark yields sit near multidecade highs (BBG)

• Companies have delayed more than $5bn of US and European bond and loan sales in October, the most this year, amid rising rates, inflation worries and doubts over the AI boom (BBG)

• Citadel’s Ken Griffin said investors are almost certainly in an AI bubble, while Deutsche Bank CEO Christian Sewing said he does not see one (BBG)

• SpaceX surged 8% after Q3 revenue and profit topped ests, sparking a broad space-stock rally after a tough October for the sector. Musk said SpaceX and Tesla had formed special committees to discuss a potential merger (YF)

• Super Micro Computer jumped 9.5% after the AI server maker lifted its fiscal first-quarter revenue forecast ahead of quarterly results next month (YF)

• Anthropic could file for its IPO as soon as Friday, according to Renaissance Capital, with the listing seen as a key test of a cooling IPO market after strong first-half proceeds (Fortune)

• Canadian PM Mark Carney said he spoke with Trump at length on Wednesday morning, discussing trade and Iran, with Canada still without a new US trade deal amid a protracted tariff war (BNN)

• Hotter-than-expected UK inflation fuelled expectations the Bank of England will raise Bank Rate from 3.75%, a week before the government’s autumn budget (Euronews)

• Iran’s strikes on merchant ships around Hormuz are becoming more frequent and damaging, with at least 23 incidents in the first half of October and at least five vessels hit in engine rooms (BBG)

• Iran signalled little prospect of diplomatic progress with the US, with President Masoud Pezeshkian saying Washington cannot expect dialogue while blockading and threatening the country (RT)

• UK CPI rose to 3.5% year-on-year in September from 3.1%, above 3.4% ests, as Iran war energy costs lifted fuel prices. Core rose to 2.8%, in line with ests (RT)

• UK public sector net borrowing rose to £24.5bn in September from £17.3bn in August, above £23.9bn ests, as public debt passed £3tn for the first time (BM)

• Genesis Energy reports a strong first quarter of FY27, with high national hydro storage keeping wholesale prices low and allowing it to cut thermal generation 79% to 163 GWh and buy electricity from the market instead. Total customers rose 0.7% in the quarter to 493,450. Commissioned the first stage of its Huntly battery and reached final investment decision on the 70 MW Leeston solar farm (GNE)

• Magellan Financial Group says first-quarter Financial Markets revenue was materially lower after volatile bond markets, while assets under management fell 8% to $38.0b. Upgraded annual merger synergies with Barrenjoey to $15m from $6m (MFG)

Stocks trading ex-dividend: 

• Thu 22 Oct: N1 Holdings (N1H) – $0.004, Plato Income Maximiser (PL8) – $0.006

• Fri 23 Oct: Spheria Emerging Companies (SEC) – $0.011

• Mon 26 Oct: Alcoa Corporation (AAI) – $0.101

• Tue 27 Oct: Bank of Queensland (BOQ) – $0.20

• Wed 28 Oct: None

• Thu 29 Oct: Autosports Group (ASG) – $0.03, Benjamin Hornigold (BHD) – $0.062, Waterco (WAT) – $0.13

Other ASX corporate actions today:       

• Dividends paid: Latitude Group Holdings (LFS), Nick Scali (NCK), Nine Entertainment Co. Holdings (NEC), Ridley Corp (RIC)

• IPOs: Wiluna Mining Corporation (WMC), 12pm AEDT

• AGMs: APA Group (APA), ASX (ASX), Aurizon Holdings (AZJ), Bapcor (BAP), BHP Group (BHP), Brambles (BXB), Healius (HLS), Insurance Australia Group (IAG), Magellan Financial Group (MFG)

Economic calendar (AEDT):

• No major economic events today