The ASX has zigzagged across the index graphs today, unable to make up its mind on whether to climb or fall.
As of midday AEST, the bourse has made a small recovery to press into positive territory, up just 9.1 points or 0.11% to 8,212.80 but close to new record highs.
Iron ore and lithium climb
Miners are having a field day with iron ore rising back above the US$100 per tonne mark, bolstering the entire Australian mining sector as Chinese stimulus breathes new optimism into the beleaguered industry.
The materials sector is up 2.75% at the moment – the big end of town is certainly enjoying itself, with BHP (ASX:BHP) up 3.21%, Fortescue (ASX:FMG) 4.59% and Rio Tinto (ASX:RIO) 3.43%, but the standout was Mineral Resources Ltd (ASX:MIN), which jumped 10.43%.
Dual upticks in iron ore and lithium were the core drivers of MinRes’ growth, as major Chinese producer CATL announced the suspension of its 5000-6000-tonne-per-month lithium carbonate equivalent Jianxiawo operation in Yichun, Jianxi Province.
That set the theme for the mid cap stocks too, with mostly lithium and iron-exposed shares lifting. Champion Iron gained 7.06%, De Grey Mining 3.73%, Liontown Resources (ASX:ASX:LTR) 7.59% and Arcadium Lithium 5.09%.
The other sectors were firmly in the red as of midday, led down by Energy (-0.82%) and Health Care (-0.72%).
Investors cheer Chinese stimulus
“Investors are relishing markets hitting brand new record highs overnight, with $915 billion in market value added to the S&P500 since the Fed cut rates,” writes moomoo market strategist Jessica Amir.
“What’s reassuring is that the moves in the US benchmark index, the S&P500, and Europe’s benchmark have been sustainable.
“We’ve also seen a significant boost in sectors benefiting from China’s stimulus, after China announced not one, but two supersized stimulus packages for its economy this week.
“It’s been a firecracker push for stocks that could benefit from China’s support.
“Overnight, the Copper sector rose an astounding 7.5%, the Passenger Air sector gained 6.7%, and Gaming and Casinos rose 5%.
“The copper sector alone has gained $7.5 billion in value since the Fed’s rate cut.
“Copper prices, along with other metals like nickel and iron ore, are continuing to rise, with a 7.3% gain in just five days.
“Gold also hit new highs, while oil sank 3%, closing under $68. Meanwhile, Bitcoin hit new highs.
“Currency markets reveal traders are bullish on China and US stimulus, supporting the Aussie dollar, which is now in sight of 70 US cents. Meanwhile, Bitcoin hit new highs.
“Futures markets point to a new record high for Australia’s ASX200 index, with futures suggesting a 0.3% gain to 8,278.
“All eyes are on a group of companies going ex-dividend today, which could keep gains in check.
“Focus is also on the miners after China’s second stimulus deal this week.
“We also await the Fed’s preferred inflation gauge in the US on Friday, but markets seem to believe the story of declining US inflation will continue, and the data will likely be seen as another sign for markets to keep moving forward.”
Five at Five
Moho Resources explores at Weld Range North Project; conducts comprehensive review
Moho Resources Ltd (ASX:MOH) continues to explore its Weld Range North Project in the Murchison region of Western Australia, prospective for copper-nickel sulphide and gold mineralisation.
Read more
Strickland Metals hits 365.8 metres at 2.0 g/t gold at Medenovac, Rogozna Project
Strickland Metals Ltd (ASX:STK) has unearthed an exceptionally broad intersection of gold mineralisation at the Medenovac prospect of the Rogozna Project in Serbia, striking 365.8 metres at 2.0 g/t gold equivalent from 198.4 metres of depth in drill hole ZRSD24157, with several higher-grade components contained within.
Read more
Rumble Resources welcomes one of India’s largest mining contractors as strategic investor
Rumble Resources Ltd (ASX:RTR, OTC:RTRFF) welcomes Bain Resources Holdings — a company associated with the large Indian mining contractor BGR Mining and Infra Ltd — as a strategic shareholder.
Read more
Leeuwin Metals advances critical minerals project in challenging and rewarding year
Leeuwin Metals Ltd (ASX:LM1) has released its annual report for the year ending June 30, 2024, providing a review of operations across its portfolio of critical metals projects in Canada and Western Australia.
Read more
Nexus Minerals' annual report tells of significant expansion in gold resources at Wallbrook Project
Nexus Minerals Ltd (ASX:NXM)’s annual report reveals it has delivered a strong performance in its 2024 financial year, with continued progress at its Wallbrook Gold Project in Western Australia.
Read more
One to watch
Viridis Mining and Minerals’ Colossus Project delivers highest known rare earth recoveries
Viridis Mining and Minerals Limited CEO Rafael Moreno joins Proactive’s Tylah Tully to discuss the company’s latest news and investor case.
Watch more
On your six
Aldi remains Australia's cheapest supermarket, Choice survey reveals
The latest survey from consumer advocacy group Choice has again anointed Aldi the most affordable supermarket in Australia, with the German grocery giant outpacing Coles and Woolworths by a considerable margin.
Read more