Firstly, National Australia Bank
(ASX:NAB) revealed that it would increase borrowing rates by 25 basis point hike following yesterday’s announcement.
Then, this afternoon, the Commonwealth Bank of Australia
(ASX:CBA) announced that it will raise its home loan variable interest rate by 25 basis points, in line with the RBA’s Melbourne Cup 25 basis point hike. This will come into effect on November 11.
In other news, the oil sector has extended its gains, after an industry report outlined another big decline in crude oil inventories in the US, adding to signs of supply tightness.
Overall, at the closing bell, the S&P/ASX 200 was 0.14 per cent or 9.80 points higher at 6986.70.
FuturesThe Dow Jones futures are pointing to a rise of 65 points.
The S&P 500 futures are pointing to a rise of 10.75 points.
The Nasdaq futures are pointing to a rise of 42 points.
The SPI futures are pointing to a rise of 21 points when the market next opens.
Best and worst performersThe best-performing sector was Materials, up 1.13 per cent. The worst-performing sector was Real Estate Investment Trusts, down 1.65 per cent.
The best-performing stock in the S&P/ASX 200 was Coronado Global Resources
(ASX:CRN), closing 8.81 per cent higher at $2.10. It was followed by shares in Perpetual
(ASX:PPT) and Lake Resources
(ASX:LKE).
The worst-performing stock in the S&P/ASX 200 was Domino Pizza Enterprises
(ASX:DMP), closing 5.33 per cent lower at $60.01. It was followed by shares in Cromwell Property Group
(ASX:CMW) and Reliance Worldwide
(ASX:RWC).
Asian newsAsian equities are looking to close slightly higher today.
Greater China markets have been outperforming, with the Hang Seng swinging sharply higher after a cautious start. The Nikkei and Kospi are steady.
So far, Japan's Nikkei has lost 0.13 per cent, Hong Kong's Hang Seng has gained 2.01 per cent and China's Shanghai Composite has gained 1.02 per cent.
Job openings saw surprise increase in September; October ISM Manufacturing shows some price reliefThe September JOLTS report showed 10.717 million job openings, up 437K month on month and well ahead consensus for a 1.11M decline to 9.8M. The total amount of quit rates were unchanged for a third-straight month at 2.7 per cent while layoffs dipped slightly. However, the hiring rates ticked lower to 4.0 per cent, slowest since 21 January. Report in particular focused today given Fed impact, with banks having specifically called out job vacancies as a way to measure labour market imbalances. Elsewhere, October US ISM Manufacturing index dropped 0.7 points month on month to 50.2, the lowest since 20 May though ahead of consensus 50.0. Prices paid index down 5.1 points month on month to 46.6, lowest since 20 May. New orders index of 49.2 still in contraction territory, but up 2.1 points month on month. Employment index is up 1.3 points month on month to 50.0. Commentary also highlighted declines in prices, but weaker demand trends, impact from macro overhangs like housing slowdown, and geopolitical concerns. Final October Markit Manufacturing PMI marked up 0.5 points to 50.4, though still lowest in 28 months. Said input cost growth slowest since 20 November, selling price growth slowest since 21 February.
Waiting for the FedThere are a bunch of moving pieces, with direction also complicated by the waiting game for the FOMC announcement tomorrow. Biggest positive has been the speculation out of China about the formation of an expert team to put together a reopening plan. This comes amid a continued ramp in growth concerns surrounding Beijing's adherence to the zero Covid policy. Lower rates are another bright spot with some focus on RBA decision not to reaccelerate pace of tightening at today's meeting. M&A also in focus with approximately $30B of announced deal activity. The US economic data has more of an overhang with the jump in job openings (and upward revision to prior month) in the JOLTs report. ISM manufacturing headline a bit firmer than expected and employment moved out of contraction, though there was some good news in terms of the pullback in prices paid.
Company newsLake Resources
(ASX:LKE) provided an update on their progress at the Kachi project lithium processing demonstration plant. The company has confirmed completion of construction of the demonstration plant on site and the wet and dry commissioning process that took place during September and October. The demonstration plant is now processing Kachi brines with final optimisation of the process now nearing completion. Lilac CEO David Snydacker said these excellent early results validate Lilac’s ability to quickly scale up lithium production at the Kachi site. “Just one month after the start of wet commissioning, we are already achieving 80 percent lithium recoveries even as we complete the commissioning process and increase recoveries. Lake CEO David Dickson said Lake was delighted to see initial test results achieving anticipated specifications. “This validates the many years of test work that took place in Lilac’s Oakland facility during Covid whilst access to site was impossible. We look forward to seeing the test work move into a steady state and then for the process to be validated by Hatch so that work on the DFS can be completed.” Shares closed 5.19 per cent higher at $1.12
Galan Lithium
(ASX:GLN) announced the submission of an application to significantly increase the scope of the piloting stage for its 100 per cent owned Hombre Muerto West Project in Catamarca Province, Argentina. Galan’s Managing Director, JP Vargas de la Vega, said: “The key drivers of this expanded pilot permit application fit our steady and staged approach, but also the team’s progressive thinking around alternatives to fast-track lithium production from the HMW Project. The scaling to semi-commercial pilot plant testing delivers significant ancillary and de-risking benefits, including the construction of larger ponds which are similar to those planned to be utilised during HMW’s full-scale production stage.” Shares closed 1.94 per cent higher at $1.58
Cosmos Exploration
(ASX:C1X) today announced that extensive rare earth element trends have been found in their Byro East project in Western Australia, highlighting the potential for significant rare earth findings. The breakthrough has added a significant new dimension to upcoming exploration activity at Byro East, highlighting the opportunity to discover significant clay-hosted REE mineralisation in a district which is emerging as an exploration hot-spot for critical minerals following recent discoveries in the region. In response, Cosmos Exploration Executive Director, Jeremy Robinson, said: “Our initial interpretation of the Byro East anomalies suggests that these anomalies potentially represent Ionic-adsorption Rare Earth Element clay-type deposits that form from the in-situ weathering of granites enriched in REE’s.” Shares closed 7.14 per cent higher at 15 cents.
Chimeric Therapeutics
(ASX:CHM) announced this morning that it has entered into a sponsored research agreement with Case Western Reserve University to further advance Chimeric’s NK cell therapy portfolio. The research program at CWRU will be led by Dr David Wald, inventor of the CORE NK technology. Through this research collaboration, Dr Wald and his laboratory will work closely with Chimeric to advance multiple next-generation NK cell products through preclinical development, including CHM 0301 (Next-Generation CORE-NK Platform), CHM 1301 (Chlorotoxin CAR NK), CHM 2301 (CDH17 CAR NK), and CHM 3301 (undisclosed CAR NK). “With the encouraging clinical data seen with CHM 0201 (CORE NK cell platform) we are very excited to be enhancing our collaboration with Dr Wald and his team at Case Western. By building upon Dr Wald’s NK cell scientific experience and expertise we believe we will be able to advance NK cell therapies to benefit patients in multiple disease areas in the future” said Jennifer Chow, CEO and Managing Director of Chimeric Therapeutics. Shares closed 5 per cent lower at 8 cents.
Atlantic Lithium
(ASX:A11) today announced assay results from the resource and exploration drilling program at the Ewoyaa Lithium Project in Ghana, West Africa. The results from the program have returned multiple high-grade pegmatite intervals of over 1.5 per cent lithium oxide, spanning at an interval length of up to 95 metres, with the hole ending in mineralisation, which provides further confidence in future Resource to Reserve conversion. Commenting on the company’s latest progress, Lennard Kolff, Interim Chief Executive Officer of Atlantic Lithium, said: “With the Pre-Feasibility Study now delivered, the Mining Licence application submitted, ongoing positive drilling results and with the support of our funding agreement with Piedmont Lithium, we feel the Company is ideally positioned to benefit from the unprecedented levels of lithium demand that are expected over the coming years.” Shares closed 34.04 per cent higher at 95 cents.
Stellar Resources
(ASX:SRZ) announced that its wholly owned subsidiary, Tarcoola Iron Pty Ltd, has recently been granted an Exploration Licence over a combined area of 97 km2 in the Mt Paris and Scamander North areas of Northeast Tasmania, which are prospective for lithium and tin. The grant of the exploration licence adds to Stellar’s tenement holding in Northeast Tasmania and hosts potential for lithium, tin and base metal mineralisation. In response, Executive Director Gary Fietz commented: “This enhances Stellar’s commodity mix in Tasmania on top of its flagship Heemskirk Tin Project, and Victorian style gold exploration targets in Northeast Tasmania.” Shares closed 18.18 per cent higher at 1 cents.
Commodities and the dollarGold is trading at US$1650.98 an ounce.
Iron ore is 0.8 per cent higher at US$80.15 a tonne.
Iron ore futures are pointing to a rise of 2.84 per cent.
Light crude is trading $1.22 higher at US$89.59 a barrel.
One Australian dollar is buying 64.18 US cents.
