The ASX is higher today after Wall St enjoyed one of its best days of the year.
Around half an hour before market close on Friday, the S&P/ASX200 had gained 81.10 points or 1.03% to 7,946.60, crossing above its 20-day moving average. Over the last five days, the index has gained 2.17% and is currently 2.48% off of its 52-week high.
The top-performing stocks in this index are Zip (ASX:ZIP) Co Ltd (ASX:ZIP, OTC:ZIZTF) and Audinate Group Ltd (ASX:AD8), up 12.18% and 6.01% respectively.
Taking a general look at stocks, James Hardie Industries Ltd was one of the largest large-cap advancers, rising by 5.72% during the session, followed by Fortescue (ASX:FMG) Metals Group, which increased by 2.38% amid a stronger day for mining companies. Rio Tinto Ltd (ASX:RIO) and BHP (ASX:BHP) Group Ltd (LSE:BHP, ASX:BHP) also saw gains of 1.42% and 1.53%, respectively, after experiencing consecutive losses.
All four major banks saw upward movement in afternoon trading, including National Australia Bank Ltd, which rose by 1.39% despite reporting a 6% year-on-year decrease in cash earnings to $1.75 billion for the third quarter. NAB's earnings were impacted by $118 million in credit impairment charges as the bank faced increased mortgage arrears.
Looking at the sectors, all were higher at 3pm AEST with the best performed including Energy up 2.00%, Materials 1.65% higher and Financials 1.30% higher.
Over on the small cap index, the S&P/ASX Small Ordinaries (XSO) had gained 1.04% at time of writing to 3,011.10. Over the past five days, the XSO is 2.90% higher.
RBA Governor warns of unfolding impact from rate hikes
Reserve Bank of Australia (RBA) governor Michele Bullock has stated that the full impact of the RBA’s interest rate hikes, which began in May 2022, is still unfolding. Speaking to a parliamentary committee, Bullock acknowledged the uncertainty surrounding the timing and extent of the economic effects, suggesting that while some effects have materialised, more are likely to come, though the precise impact remains unclear.
Bullock also dismissed claims that businesses have been increasing prices to expand profit margins, attributing price rises instead to higher input costs and strong demand. She noted that as demand weakens, businesses will likely find it harder to pass on these costs.
Bullock highlighted challenges in the residential construction sector, citing that competition for labour from non-residential projects is delaying home completions, exacerbating housing shortages. She pointed out that these delays are contributing to slower progress in reducing inflation towards the RBA’s target.
Additionally, RBA assistant governor Chris Kent reported that despite concerns over a potential rise in loan arrears due to fixed-rate loans switching to higher variable rates, arrears have remained below pre-COVID levels.
Five at five
Elixir Energy achieves potentially commercial gas flow-rate from single zone in Daydream-2 well
Elixir Energy Ltd (ASX:EXR, OTC:ELXPF)’s belief that the Taroom Trough in Queensland’s Bowen Basin could emerge as a major new supply of Australian gas has taken a step forward.
Read more
Spenda executes binding share sale agreement to acquire software developer Limepay
Spenda Ltd (ASX:SPX) has executed a binding share sale agreement to acquire software development company Limepay Pty Ltd in an all-scrip deal worth up to $8 million, with the acquisition set to be completed next month.
Read more
Latrobe Magnesium expects first revenue from Magnesium Demonstration Plant by October
Latrobe Magnesium Ltd (ASX:LMG, OTC:LTRBF) is advancing the construction of its Magnesium Demonstration Plant at pace, continuing to experience no reportable health, safety, or environmental (HSE) incidents to date.
Read more
Immuron nets A$3.5 million in funding from US Department of Defense for Travelan® research
Immuron Ltd (NASDAQ:IMRN, ASX:IMC) has received another ringing endorsement from the US Department of Defense (DOD) in the form of a US$2.3 million or A$3.5 million grant, to be used in a research agreement for the Naval Medical Research Command (NMRC), and Walter Reed Army Institute of Research (WRAIR).
Read more
Perseus Mining appoints new COO as it continues to expand production and assets
Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) has announced the appointment of Ms Amanda Weir as chief operating officer (COO), effective from August 19 2024.
Read more
On your six
Tech Bytes: Google (NASDAQ:GOOGL) confirms Iran-backed hackers are targeting US presidential campaigns
Google's Threat Analysis Group (TAG) has reported that an Iranian state-sponsored hacking group, Charming Kitten, has targeted the 2024 US presidential campaigns of Donald Trump, Joe Biden, and Kamala Harris.
Read more
The one to watch
Latrobe Magnesium advances plant, expects revenue by October
Latrobe Magnesium Limited managing director David Paterson joins Proactive’s Tylah Tully to discuss how the company is progressing construction of its Magnesium Demonstration Plant, expecting to generate its first revenue by October 2024.
Read more