The ASX is up today, gaining 8.90 points or 0.12% to 7,667.20. The top performing stocks were Sayona Mining and the A2 Milk Company Ltd, up 16.36% and 11.39% respectively.
Over the last five days, the index has gained 0.29% and is currently 0.47% off its 52-week high.
There was a fair bit of green lighting up the sector board.
The Materials (0.50%), Financials (0.73%), Communications Services (0.74%), Industrials (0.36%), Consumer Discretionary (0.42%) and Consumer Staples (0.15%) sectors were all up just after lunch, with one sector in particular dragging the exchange in the other direction – Real Estate was down a substantial 2.48%.
Inflation rears its head in US again
Over in the US, there has been some consternation about still-untamed inflation, with US equities ending last week in retreat after the Producer Price Index (PPI) for January rose by 0.3%, the largest upward move in five months and more than the forecasted 0.1%).
“Core PPI, which excludes food and energy and has a strong feed through into the Fed’s preferred measure of inflation Core PCE, surged by 0.5%, well above market expectations of 0.1%,” said IG’s Tony Sycamore.
“A core PCE print of 0.4% MoM in January (to be released on March 1), which would see the three-month annualised Core PCE inflation rate surge from 1.7% in December to ~2.7%, now appears likely.
“This week will see the Q4 earnings season continue with reports scheduled from companies including Walmart (NYSE:WMT), Home Depot (NYSE:HD), Nvidia, Berkshire Hathaway (NYSE:BRKa) and Warner Bros.
“The key economic events on the calendar include the FOMC meeting minutes on Thursday morning, flash PMIs and Fed Speak from Bostic, Bowman, Harker, Cook, Kashkari and Waller.”
On the horizon for US investors is the release of the FOMC meeting minutes, due Thursday.
“At its meeting in January, the Fed maintained its target rate for the Fed Funds at 5.25%-5.50% for a fourth consecutive meeting,” Sycamore continued.
The Fed removed its out-of-date tightening bias and said rate cuts were coming but not imminent:
“‘The committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%.
“The minutes will be closely scrutinised for the Fed's plans around its balance sheet, how it views the run of hotter-than-expected US data and risks to the global economy and any clues about when the Fed expects to start cutting rates.”
The five at five
Strickland Metals defines new primary Dusk til Dawn gold structure; potential to add ounces
Strickland Metals Ltd (ASX:STK) believes there is strong potential to grow the 109,000-ounce gold resource at Dusk til Dawn prospect within the Yandal Gold Project in WA after identifying a new primary mineralised structure.
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Triangle Energy raises $5 million to drill Perth Basin opportunities
Triangle Energy (Global) Ltd has received firm commitments to raise $5 million in a placement to institutional and sophisticated investors to advance its onshore Perth Basin projects ahead of drilling which is planned for the second quarter.
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Brookside Energy kicks off multi-well drilling program in Anadarko Basin
Brookside Energy Ltd (ASX:BRK, OTC:RDFEF) has initiated the ambitious Flames-Maroons Development Plan (FMDP) at the southern SCOOP Play's core in the Anadarko Basin of Oklahoma with the first well spudded.
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Anson Resources hits high-grade zinc and lead in maiden Ajana drilling
Anson Resources Ltd (ASX:ASN, OTCQB:ANSNF) is encouraged by high-grade zinc and lead returned in its maiden drilling program at the Ajana Base and Precious Metals Project in the Mid-West region of Western Australia with silver to boot.
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AuKing Mining advances to ambitious stage two drilling at Mkuju Uranium Project
AuKing Mining Ltd (ASX:AKN) has progressed to stage two of its exploration drilling program at the Mkuju Uranium Project in southern Tanzania, following promising initial findings.
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On your six
OpenAI valued at US$80 billion in venture firm deal
OpenAI has completed a deal that values the San Francisco-based artificial intelligence company at US$80 billion or more, nearly tripling its valuation in less than 10 months, according to a NY Times report.
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The one to watch
Lindian Resources makes high-grade REE discovery
Lindian Resources Ltd (ASX:LIN, OTC:LINIF) CEO Alistair Stephens joins Jonathan Jackson in the Proactive studio to talk us through a new high-grade rare earth elements (REE) find at the Kangankunde Project in Malawi.
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