The ASX 200 has fallen to 12-month lows, sliding below the 6,800 level on fears the Israel-Hamas conflict will intensify and expand regionally.
The benchmark index lost 0.73% to end the day at 6,777, bringing its October performance to -3.87%.
IGO Ltd led the losses today after saying that lower lithium prices will hit its current quarter sales, sending the stock down 9.3% to $9.66. However the broader materials sector finished slightly higher. Rio Tinto (ASX:RIO) climbed 0.81%, BHP (ASX:BHP) gained 0.09% and Fortescue (ASX:FMG) added 0.09%.
Energy stocks ended down 2.5% today, as Brent crude oil prices sank. Financials and Consumer Staples also felt the pain, each falling by at least 1%.
Gold stocks outperformed - Newmont Corp gained 3.18% and Evolution Mining added 0.97%.
Retail spending comes in better than expected
Adding to last week’s stronger than expected inflation data, retail sales today came in better than expected for September, lifting 0.9% from a month earlier according to the ABS and far exceeding economists’ estimates for a 0.3% lift as department stores and household goods sales picked up.
This marks the final major economic data set before the RBA’s upcoming interest rate decision next Tuesday. Economists expect a 0.25 percentage point hike to 4.35%. Today’s September sales figures will likely boost the RBA’s confidence that the economy can withstand further interest rate increases ahead of next week’s decision.
ABS head of retail statistics Ben Dorber said: “The warmer-than-usual start to spring lifted turnover at department stores, household goods and clothing retailers, with more spending on hardware, gardening and clothing items.
“Also adding a boost to turnover in household goods retailing was the release of a new iPhone model.”
The RBA is now widely expected to raise interest rates at its November 7 meeting after last week’s third-quarter CPI came in higher than expected. RBA governor Michele Bullock has said policymakers “will not hesitate” to tighten further if there were a material upside to inflation outlook.
Also for the RBA to consider is the anticipated inflation pressure from the anticipated arrival of over 500,000 migrants over the coming year. The surge in migration is expected to push up the price of rentals and total consumer spending.
Five at Five
Ora Banda Mining inks ‘transformational’ A$26 million lithium-focused agreement with Wesfarmers (ASX:WES)
Ora Banda Mining Ltd (ASX:OBM) has executed a binding joint venture and farm-in agreement with Brenahan Exploration Pty Ltd (BEPL), a subsidiary of Wesfarmers, selling 65% of its non-core mineral rights on the Davyhurst tenement package for a cash consideration of A$26 million along with a 2% royalty.
Read more
ClearVue Technologies secures inaugural $A252,000 US contract for solar greenhouses
ClearVue Technologies Ltd (ASX:CPV, OTCQB:CVUEF) has garnered its first commercial contract in the United States, tapping into a market for global solar greenhouse glass that is valued at US$7.5 billion and expanding at a 7.2% compound annual growth rate.
Read more
Carnavale Resources expands Kookynie gold footprint with RC drill results of up to 184.9 g/t at McTavish East
Carnavale Resources Ltd (ASX:CAV) has established the potential for resource growth at the Kookynie Gold Project in Western Australia with further “spectacular” gold results of up to 184.9 g/t from the latest drilling campaign at the McTavish East Prospect.
Read more
Tamboran Resources Shenandoah South 1H well demonstrates over pressured regime
Tamboran Resources Ltd (ASX:TBN, OTC:TBNRF) has welcomed results from the EP 117 Operation’s Shenandoah South 1H (SS-1H) well, which has demonstrated an over pressured regime with a pore pressure gradient of at least 0.54 pounds per square inch (psi) per foot, in line with results demonstrated at Tanumbirini (0.51 – 0.56 psi per foot).
Read more
Latin Resources offtake inquiries prompt partnering process for the Salinas Lithium Project
Latin Resources Ltd (ASX:LRS, OTC:LRSRF) has received numerous unsolicited offtake enquiries for its flagship Salinas Lithium Project in Minas Gerais, Brazil from key battery manufacturers, chemical converters, original equipment manufacturers (OEMs) and leading trading companies.
Read more
On your six
Fortescue Metals Group (ASX:FMG) invests A$13.5 million in Norwegian green hydrogen developer
Fortescue Metals Group (ASX:FMG) has invested close to NOK 100 million (A$13.5 million) to become a shareholder in Norwegian Hydrogen, a leader in Nordic green hydrogen projects.
Read more
One to watch
Lithium Energy says Solaroz is big enough to be sizeable world-class operation
Lithium Energy Ltd (ASX:LEL) chairman William Johnson speaks with Proactive after the company further solidified the position of its flagship Solaroz Lithium Brine Project in Argentina as a highly strategic lithium asset by delivering an upgraded 2.4Mt of indicated LCE resource based on drilling and extensive geophysics completed.
Watch more