The ASX has hit new highs today.
The S&P/ASX200 gained 23.50 points or 0.29% to 8,145.10, setting a new 100-day high. Over the last five days, the index is up 1.66% and is currently 0.07% off of its 52-week high.
The top-performing stocks in this index are Polynovo Ltd and Centuria Capital Group, up 6.12% and 4.33% respectively. Neither company released news today.
There were no sectors in the red today, although some were flat. The best performed were Information Technology and Real Estate up 0.97% and 0.82% respectively.
Looking at the small caps index, the ASX/S&P Small Ordinaries (XSO) was 0.17% higher to, 2,997.90. For the past five trading days, it has gained 3.16%.
Trade agreement with the UAE
Australia has finalised a trade agreement with the United Arab Emirates (UAE), which aims to bring billions of dollars in investment into Australia’s critical minerals sector.
The deal aligns with the UAE’s recent focus on securing access to critical minerals as part of its emissions-reduction goals. Late last year, the UAE launched a $US30 billion climate-focused investment initiative.
Australian Trade Minister Don Farrell expressed hope that this investment could be directed towards Australia’s rich supplies of critical minerals and rare earths, with preferential treatment for Australian products under the agreement.
The UAE is Australia’s largest trading partner in the Middle East, with two-way trade reaching $9.4 billion in 2023. Australia’s exports to the UAE, valued at $5.2 billion, primarily consisted of alumina, meat, and oil seeds, while imports, worth $4.7 billion, were largely petroleum products and urea.
Fed decision tomorrow
The markets have been buoyed by hopes the Federal Reserve will lower interest rates tomorrow by 0.25%.
“We expect to see relatively ambient uptakes among businesses in aggressive expansion or investing in the next few months given a lot of big agenda-setting events such as the US Presidential Elections, are on the horizon, which set to have a long-term impact on global trade and businesses’ investment strategy, writes Jack Laing, VP at Tiger Broker Australia.
“With an easing borrowing environment, companies in the banking, FMCG, technology and real estate sectors could potentially see sizeable capital inflows. Technology stocks like Tesla Inc (NASDAQ:TSLA). and Microsoft (NASDAQ:MSFT) are good choices for investors to get in.
“Additionally, while rate cuts are designed to encourage spending, they can also lead to asset bubbles and increased levels of debt, both in the corporate and household sectors. Tiger Brokers advises our clients to remain vigilant and adopt a diversified investment strategy to hedge against potential market volatility, ensuring they are positioned to take advantage of growth opportunities while mitigating risk. Considering the US election is upcoming in the next few months, risk mitigation is also important as hunting for potential rewards.
“As we move towards the end of the year, the broader impact of these rate cuts will depend on how businesses and consumers respond to the changing cost of credit, and whether these adjustments can counterbalance the economic headwinds facing the US economy.”
Five at five
Suvo Strategic Minerals secures 12-month extension on $1 million funding
Suvo Strategic Minerals Ltd (ASX:SUV) has secured a 12-month extension on its A$1 million in debt funding to support its geopolymer cement and concrete strategy.
Read more
Astral Resources further derisks Mandilla Gold Project achieving gold recoveries of up to 99.5%
As gold prices continue to surge to new highs, Astral Resources NL (ASX:AAR) has reported “outstanding” metallurgical testwork results for the Hestia, Eos and Iris deposits at its 100%-owned Mandilla Gold Project in Western Australia.
Read more
Asara Resources welcomes cornerstone investors as it turns its attention to Kada
Asara Resources Ltd (ASX:AS1, OTC:GMRMF) has welcomed a new cornerstone investor, following a $1.4 million Placement. The company has signed a binding Subscription Agreement with Barbet L.L.C FZ to raise US$950,000 (A$1.417 million), which will help it advance its flagship asset, the Kada Gold Project in Guinea.
Read more
Pantoro starts 35,000 metres of drilling at Norseman Gold Project in WA
West Australian gold producer Pantoro Ltd (ASX:PNR, OTC:PNTOF) has kicked off an extensive 35,000-metre surface drill campaign at its 100%-owned Norseman Gold Project.
Read more
Antipa Minerals achieves 33% increase in gold resource at Minyari Dome Project, Western Australia
Antipa Minerals Ltd (ASX:AZY) has obtained a substantial resource upgrade for the Minyari Dome Gold-Copper Project in the Paterson Province of Western Australia, increasing the total gold contained by 33% and upgrading 53% of the resource to the higher confidence "indicated' category.
Read more
On your six
Business Council chief criticises government’s industrial relations reforms, warns of investment shift abroad
The Business Council of Australia (BCA) chief, Bran Black, will deliver a sharp critique of Prime Minister Anthony Albanese’s industrial relations policies during a speech at the Council’s annual dinner in Sydney on Tuesday. Black will claim that the government’s recent workplace reforms are causing major employers to invest overseas rather than in Australia.
Read more
The one to watch
Polymetals secures US$20M for Endeavor Mine restart with offtake deal
Polymetals Resources Ltd (ASX:POL) executive chairman David Sproule joins Proactive’s Tylah Tully to discuss the funding the company has secured for the restart of its Endeavor silver, lead, and zinc mine north of Cobar, New South Wales.
Watch