The Australian sharemarket had its best session in nearly two months and one of the best all year after RBA governor Philip Lowe was less hawkish than feared in a key speech this afternoon.
Lithium stocks were very much in play again today, with Pilbara Minerals
(ASX:PLS) up 7.59 per cent, Core Lithium (ASK:CXO) up 4.92 per cent, Lake Resources
(ASX:LKE) up 10.74 per cent and Sayona Mining
(ASX:SYA) up 12.73 per cent.
At the closing bell, the S&P/ASX 200 was 1.77 per cent or 119.40 points higher at 6848.70.
FuturesThe Dow Jones futures are pointing to a rise of 37 points.
The S&P 500 futures are pointing to a rise of 8.50 points.
The Nasdaq futures are pointing to a rise of 24.25 points.
The SPI futures are pointing to a rise of 108 points when the market next opens.
Best and worst performersThe best-performing sector was Information Technology, up 3.19 per cent. The worst-performing sector was Energy, down 2.76 per cent.
The best-performing stock in the S&P/ASX 200 was Life360
(ASX:360), closing 16.36 per cent higher at $5.69. It was followed by shares in Megaport
(ASX:MP1) and Novonix
(ASX:NVX).
The worst-performing stock in the S&P/ASX 200 was Woodside Energy
(ASX:WDS), closing 5.50 per cent lower at $32.10. It was followed by shares in Alumina
(ASX:AWC) and Medibank Private
(ASX:MPL).
Asian marketsMarkets in the Asia-Pacific are mixed following Wall Street’s solid rebound rally overnight in the best day since 10 August for all three averages. Investors will also be closely watching Federal Reserve Chair Jerome Powell’s speech Thursday as markets brace for another 75 basis-point hike later this month.
Japan’s Nikkei 225 is leading, trading 2.04 per cent higher. The Topix is up 1.96 per cent and the Kospi in South Korea is up 0.71 per cent.
In mainland China, the Shanghai Composite is 0.14 per cent higher while the Shenzhen Component is trading 0.51 per cent lower. The Hang Seng Index has slipped 0.39 per cent while the Hang Seng Tech Index is slightly up.
RBA Governor Lowe signals slowdown in pace of tighteningIn a speech, RBA Governor Lowe noted the case for a slower pace of increase in interest rates becoming stronger as cash rate rises. Said RBA is conscious about lags in operation of monetary policy (namely, that earlier higher rate hikes are yet to be felt in mortgage payments), and that rates have increased very quickly. The RBA expects further rate hikes over coming months, but size and frequency will be guided by incoming data and outlook for inflation and labour market. Still, Lowe noted path to returning inflation to target being helped by improvement on the supply-side and lower commodity prices. Lowe's comments seemed to play into views RBA will slow pace of rates to 25 bp in October. Cash rate of 2.35 per cent is also nearing a neutral rate estimate of at least 2.50 per cent. Markets pricing in terminal rate of 3.75 per cent by mid-2023 though economists anticipate cash rate will peak at a lower level around 3.00 per cent.
Company newsThe Board of Ionic Rare Earths
(ASX:IXR) today announced it received a grant of 1.72 million pounds ($2.9 million) from the UK Government Advanced Propulsion Centre (APC) to Seren Technologies, a 100 per cent-owned subsidiary. Commenting on the successful application and award, Mr Tim Harrison, IonicRE’s Managing Director said: “This is a tremendous endorsement from the UK Government and the APC on the potential for scaling our technology offering from SerenTech. This grant validates the significance of magnet recycling in a tight supply market as well as pointing to the additional value for IonicRE shareholders in the longer-term.” Shares closed 4.88 per cent higher at 4.2 cents.
Anson Resources
(ASX:ASN), through its 100 per cent owned subsidiary A1 Lithium Inc, today announced the completion of the Definitive Feasibility Study (DFS) for Phase 1 of the Paradox Lithium Project, located in Utah, USA. The DFS results confirm the project’s advanced potential to become a major supplier of high-purity, battery-grade lithium carbonate into the US EV market, initially producing 13,000 tonnes per annum of high-purity lithium carbonate over an initial 10 years of project life. Anson’s Executive Chairman, Mr Bruce Richardson, stated: “We are very excited to deliver the Paradox Lithium Project Phase 1 DFS to market. The DFS confirms the technical and financial viability of a major new source of high purity Lithium Carbonate available for the rapidly growing US market. The Project delivers industry leading ESG credentials based on direct lithium extraction utilising Sunresin technology using lower energy and water consumption, and with spent brine being reinjected back into the Paradox." Shares closed 42.37 per cent higher at 42c.
Pacgold
(ASX:PGO) today provided an update on the Alice River drilling program. A total of 22 drill holes have been completed on the Central Target in the current program, with assay results pending for 12 drill holes. The current drilling program is approximately 50 per cent advanced. Pacgold Managing Director Tony Schreck said: “The intersection of visible gold over a sixteen metre zone is a stunning outcome and represents the first of what we believe could be potential multiple high-grade zones developed along the F1a zone." Shares are trading 25 per cent higher at 52.5c.
Commodities and the dollarGold is trading at US$1718.44 an ounce.
Iron ore is 0.4 per cent lower at US$96.90 a tonne.
Iron ore futures are pointing to a rise of 2.99 per cent.
Light crude is trading $0.55 higher at US$81.80 a barrel.
One Australian dollar is buying 67.57 US cents.
