ASX up 0.84% at noon: Dow reaches a new record high overnight

Market Reports

by Peter Milios

At noon, the S&P/ASX 200 is 0.84 per cent higher at 7,439.90.

Overnight, the Dow Jones Index reached a new record high, closing at 37,248 points with a 0.4% gain, while the Nasdaq Index increased by 0.2%, and the Russell 2000 small-cap index continued its recent rally, surging by 2.6%. Concurrently, the yield on US 10-year treasuries dropped by 9 basis points to 3.93%. Analysts express some caution about the future, as there hasn't been a 1% pullback in the S&P 500 since late October, and while the rate cut trade has been strong, it may cool off despite the favorable overall economic environment following the Fed's pivot to reverse interest rate hikes.

The SPI futures are pointing to a rise of 51 points.

Best and worst performers

The best-performing sector is Materials, up 2.07 per cent. The worst-performing sector is Consumer Staples, down 0.28 per cent.

The best-performing large cap is Allkem (ASX:AKE), trading 4.77 per cent higher at $10.54. It is followed by shares in Pilbara Minerals (ASX:PLS) and Lynas Rare Earths (ASX:LYC).

The worst-performing large cap is EBOS Group (ASX:EBO), trading 4.28 per cent lower at $32.22. It is followed by shares in Meridian Energy (ASX:MEZ) and Mercury NZ (ASX:MCY).

Asian news

Japan’s Nikkei 225 also rebounded from Thursday’s losses, opening up 0.70%, while the Topix was also 0.40% higher.

South Korea’s Kospi advanced 0.77% and the small-cap Kosdaq rose 0.47%.

Futures for Hong Kong’s Hang Seng index stood at 16,632, pointing to a stronger open compared to the HSI’s close of 16,402.19

Company news

Tamboran Resources (ASX:TBN) enters a Strategic Partnership with Liberty Energy to deliver modern stimulation and completion equipment to the Beetaloo Basin. In response, Tamboran Managing Director and CEO, Joel Riddle, said, “Tamboran continues to partner with the best-in-class operating and technology companies to support the development of our assets.” Shares are trading 40.74 per cent higher at 19 cents.

Allkem Limited (ASX|TSX:AKE) advises its existing International Financing Corporation project financing has been supplemented by an additional US$50M with IDB Invest for Allkem’s Sal de Vida Project located in Catamarca Province, Argentina. In response, Managing Director and CEO commented, “these targets and commitments support the responsible and sustainable development of lithium for a greener future and regional economic growth in the province of Catamarca.” Shares are trading 5.42 per cent higher at $10.61.

Global Uranium and Enrichment (ASX:GUE, OTCQB: OKPRF) announced that the exploration licence for the Enmore Gold Project has been renewed for a further six years. In response, Managing Director, Andrew Ferrier commented, “This renewal is a critical milestone as we progress discussions with potential project partners for Enmore. Our renewal decision is of particular significance given the favourable conditions and strong outlook for the gold market, with prices reaching all-time highs above A$3,000/oz.” Shares are trading 31.87 per cent higher at 12 cents.

Commodities and the dollar

Gold is trading at US$2046.00 an ounce.

Iron ore is 0.5 per cent lower at US$135.25 a tonne.

Iron ore futures are pointing to a 0.26 per cent fall.

One Australian dollar is buying 66.99 US cents.

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

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