Investors defy falling iron ore prices & inflation fears: Aus shares 0.4% higher

Market Reports

by Michael Luu

The ASX200 ignored inflation fears for the time being and advanced at the open, deriving momentum from Wall Street’s second rally in a row last week. The broader upturn stemmed from bullish movements in the energy, tech and consumer discretionary sectors.

Materials defied the fall in iron ore prices and bounced back into the buy zone after a weak start, as BHP (ASX:BHP) and Rio Tinto (ASX:RIO) were tracking 0.1 and 0.3 per cent higher respectively by lunchtime.

Rises in the big four banks also added oil to the engine, as Commonwealth (ASX:CA) reached a record high of $98.27.

Utilities and Telcos limited broader gains, as communications services providers TPG and Telstra shed 1.7 and 0.4 per cent respectively by midday.

At noon, the S&P/ASX 200 is 0.41 per cent or 28.90 points higher at 7043.10.

The SPI futures are pointing to a gain of 46 points.

Best and worst performers

The best-performing sector is Consumer Discretionary, up 1.22 per cent. The worst-performing sector is Communication Services, down 0.87 per cent.

The best-performing stock in the S&P/ASX 200 is Ramelius Resources (ASX:RMS), trading 7.90 per cent higher at $1.88. It is followed by shares in Mesoblast (ASX:MSB) and Resolute Mining (ASX:RSG).

The worst-performing stock in the S&P/ASX 200 is Nuix (ASX:NXL), trading 10.09% per cent lower at $3.12. It is followed by shares in Carsales.Com (ASX:CAR) and Incitec Pivot (ASX:IPL).

Commodities and the dollar

Gold is trading at US$1851.09 an ounce.
One Australian dollar is buying 75.55 US cents.
Iron ore is 12.1 per cent lower at US$208.79 a ton.