The ASX is flat today, with early gains being eroded by sharp losses in mining stocks.
The S&P/ASX200 gained just 1.70 points to 6,774.60 after setting a new 52-week low. Over the last five days, the index has lost 1.20% and 1.30% over the last 52 weeks.
“Unfortunately, a good chunk of the ASX 200’s 44 points of early gains were erased after China's official PMI missed expectations, which weighed on the Materials Sector” IG Markets analyst Tony Sycamore noted.
The top performing stocks in this index are Inghams Group Ltd and Life360 Ltd up 6.89% and 5.54% respectively.
The materials sector (down 1.16%) was the worst performing, led by ASX heavyweight BHP (ASX:BHP) Group Ltd whose shares dropped 1.55%, tracking a weaker iron ore price.
Fortescue (ASX:FMG) Group Ltd shed 0.13%.
Information technology was the next main drag losing 0.69%.
Real Estate led the sectors in the green with a 1.03% bump, while Consumer Staples was 0.92% higher.
The ASX Small Ordinaries (XSO) was also higher, rising 0.12% to 2,559.90.
The interest rate conundrum
While sentiment is mixed as to whether the Reserve Bank of Australia will raise interest rates on Melbourne Cup day. We could take some direction from the Fed this week.
Erik Weisman, chief economist and portfolio manager at MFS Investment Management believes the Fed will hold.
“The Fed will not raise rates this week, as there is no need to exercise that option just yet and the markets are not demanding further tightening. But, until the labor market has cooled considerably, and inflationary pressures display sufficiently persistent containment, the Fed will keep the option of future rate hikes firmly on the table.”
Weisman says we should consider the following:
“While the market would be delighted to learn something new concerning the expected timing and scope of future rate cuts or the end game for quantitative tightening, this meeting in unlikely to provide much illumination on these fronts.”
Five at five
Krakatoa Resources kicks off lithium drilling at King Tamba
Krakatoa Resources Ltd (ASX:KTA) has kicked off a reverse circulation (RC) drill program to test high-grade lithium targets at its wholly owned King Tamba Project in Western Australia.
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Kinetiko Energy advances shallow gas projects with production drilling in South Africa’s Mpumalanga Province
Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) has received the green light to drill five appraisal production gas wells in the southern part of exploration right 271 (ER271) in gas-hungry South Africa's Mpumalanga Province.
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Gold Hydrogen detects significant concentrations of hydrogen and helium at Ramsay 1 well
Gold Hydrogen Ltd (ASX:GHY) encountered significant concentrations of hydrogen and helium during drilling at the Ramsay 1 well, confirming historical findings and demonstrating the presence of an active hydrogen resource at shallow depths at the Ramsay Project on South Australia’s Yorke Peninsula.
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Lithium Energy’s Solaroz Lithium Project emerges as a low-cost, high-margin venture following study
Lithium Energy Ltd (ASX:LEL) has unveiled the results of its scoping study for the Solaroz Lithium Project in Argentina’s Jujuy Province, which showcases its potential as a large-scale, long-life, high-margin venture with excellent ESG metrics.
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Rumble Resources confirms Mato discovery at Earaheedy with further high-grade zinc-lead mineralisation
Rumble Resources Ltd (ASX:RTR, OTC:RTRFF) has confirmed the Mato prospect as a significant new zinc-lead sulphide discovery at its Earaheedy Project, north of Wiluna in Western Australia.
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On your six
Leonardo Ai surges with rapid revenue growth but faces retention hurdles
Leonardo Ai, a Sydney-based artificial intelligence image creation start-up, has quickly gained investor attention by generating US$1.6 million in revenue within five months. That puts the company on track to make US$5 million on an annualised basis.
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The one to watch
Base Resources sees improved ilmenite and rutile prices over the quarter
Base Resources Limited (AIM:BSE, ASX:BSE) CFO Kevin Balloch talks Proactive through the company’s September quarter highlights. Prices for ilmenite and rutile improved during the period while zircon prices softened on sluggish demand.
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