Inflation slows to 7%: ASX down 0.05% at noon

Market Reports

by Peter Milios

According to the Australian Bureau of Statistics, annual inflation growth in the first quarter slowed to 7 per cent from the previous quarter's 7.8 per cent. This was slightly higher than the expected consensus of 6.9 per cent. The RBA's preferred measure, core CPI, also cooled to 6.6 per cent from the previous quarter's 6.9 per cent, which was in line with economists' expectations.

At noon, the S&P/ASX 200 is 0.05 per cent lower at 7,318.50.

The SPI futures are pointing to a fall of 25 points.

Best and worst performers

The best-performing sector is Energy, up 1.01 per cent. The worst-performing sector is Materials, down 0.65 per cent.

The best-performing large cap is Evolution Mining (ASX:EVN), trading 3.92 per cent higher at $3.575. It is followed by shares in Qube Holdings (ASX:QUB) and Northern Star Resources (ASX:NST).

The worst-performing large cap is Mineral Resources (ASX:MIN), trading 9.16 per cent lower at $73.00. It is followed by shares in BlueScope Steel (ASX:BSL) and Pilbara Minerals (ASX:PLS).

Asian markets

Asia-Pacific markets were trading mixed on Wednesday after banking fears were reignited on Wall Street.
Shares of First Republic Bank tumbled more than 49 per cent after the regional bank posted its latest quarterly results, saying late Monday that deposits dropped 40 per cent to $104.5 billion in the first quarter but have since stabilized.
Investors were also watching Australia’s inflation numbers for the first quarter of 2023, which slowed to 7 per cent year-on-year, down from a 23-year high of 7.8 per cent the previous quarter.
In Japan, the Nikkei 225 fell 0.46 per cent, and the Topix dropped 0.7 per cent.
South Korea’s Kospi rose 0.28 per cent, while the Kosdaq was 0.76 per cent up after the country’s consumer sentiment index for April rose to 95.1, compared to 92 in March.
Hong Kong’s Hang Seng index started the day 0.23 per cent up, while the Hang Seng Tech index rebounded from Tuesday’s losses to open 1.11 per cent higher.
Mainland Chinese markets were mixed, with the Shenzhen Component up marginally, but the Shanghai Composite down 0.29 per cent.

Company news

ENRG Elements (ASX:EEL, OTCQB:EELFF) announced a 100 per cent increase in Mineral Resource at Agadez Uranium Project in Niger. In response, Managing Director, Caroline Keats, commented: “This Resource update demonstrates the exciting potential with a drilling program planned to commence in the coming months.” Shares are trading 6.25 per cent higher at 1.7 cents.

Chimeric Therapeutics (ASX:CHM) announced it has received ethics approval for Phase 1B multi site brain cancer trial approved for initiation. In response, Dr Jason Litten, Chief Medical Officer of Chimeric Therapeutics, “The two-part trial design also ensures that we are positioned to move rapidly into the dose expansion cohort upon a positive clinical assessment of the Phase 1 data at the end of 2023.” Shares are trading 5.97 per cent higher at 7.1 cents.

Marley Spoon (ASX:MMM) has announced that they have raised A$52m in equity to the Company by way of new placement shares, subject to shareholder approval, at a price representing a 17 per cent premium to the last close. In addition, the Company has also entered into a Business Combination Agreement (“BCA”) with a Frankfurt Stock Exchange-listed SPAC related to its current investor 468 Capital – in a scrip deal that implies a 45 per cent premium to where the CDIs last traded. Shares are trading 13.8 per cent higher at 16.5 cents.

Commodities and the dollar

Gold is trading at US$2008.50 an ounce.
Iron ore futures are pointing to a 0.6 per cent fall.
One Australian dollar is buying 66.20 US cents.

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