The ASX is higher today. The S&P/ASX200 gained 56.80 points or 0.74% to 7,758.50 crossing above its 50-day moving average. Over the last five days, the index has gained 0.40% and is currently 1.92% off of its 52-week high.
Top-performing stocks in this index are Healius Ltd and Coronado Global Resources Inc. up 4.33% and 4.04% respectively.
Looking at the sectors, all were green except Information Technology which lost 0.68% for the day. The best performers were Financials, Real Estate and Utilities which were 1.45%, 1.38% and 1.28% higher.
On the small cap front, the S&P/ASX Small Ordinaries (XSO) was 0.0099% higher at 3,023.20. Over the five days, it is down 0.60%.
Dollar’s best monthly gains since December
The dollar is tracking well.
“After starting May in the doldrums below $0.65, the AUD/USD ended up securing its first monthly close for the year above $0.66 and its best monthly performance (+2.78%) in five months,” IG Markets analyst Tony Sycamore said.
“That the AUD/USD could lock in such impressive figures in May, disguised the messy manner in which it advanced. A snapshot taken from the last six trading days of May is a perfect example illustrating a two-step forward, two-step back cycle into the end of the month.
“Upon closer investigation, we can see that the AUD/USD’s gains largely occurred in the first three trading days of May, initially after the Fed ruled out another rate hike at the May 1 FOMC meeting and again in mid-May following cooler US PPI and CPI readings.
"A strong rally in commodities during the first half of the month added to the case before a hotter-than-expected Australian CPI inflation reading up against a cooler US PCE inflation reading sealed the deal.
“This week, AUD/USD traders will focus on Q1 2024 GDP (Wednesday). Also on the calendar are Trade Balance for April and Housing Finance on Thursday.”
3.75% wage increase deemed fair
The Fair Work Commission's 3.75% minimum wage increase decision has been described as 'fair' and likely to be welcomed by the RBA, according to RBC Capital Markets’ chief economist Su-Lin Ong.
Amid ongoing cost of living pressures, Ong noted that a larger increase was a risk but deemed the commission's decision as both fair and prudent.
This increase aligns with the RBA's wage price index forecast, predicting 3.8% by the end of 2024 and 3.6% by mid-2025, dependent on sustained productivity improvements.
The increase, effective from July 1, has drawn concern from the Australian Chamber of Commerce and Industry (ACCI).
Its chief executive Andrew McKellar remarked that the outcome exceeds current inflation and the Reserve Bank’s inflation target range.
McKellar expressed that while the decision does not align with the needed trajectory for stabilising the Australian economy, it does not pose a significant inflation threat, provided productivity issues are addressed.
He highlighted that the decision reflects a trend of wages becoming disconnected from underlying productivity, which he views as economically imprudent.
Five at five
Empire Energy “tapping into Australia’s hidden gas giant”: Morgans
Morgans has reiterated its “Speculative Buy” rating on Empire Energy Group Ltd (ASX:EEG, OTC:EEGUF) as the company transitions to pilot production and subsequently full-scale development at its Carpentaria Gas Project in the Beetaloo Basin in the Northern Territory.
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Latin Resources “top-tier hard rock lithium asset”; remains a Buy says Pac Partners
Pac Partners has prepared a new research report on Latin Resources Ltd (ASX:LRS, OTC:LRSRF) following a mineral resource estimate (MRE) upgrade at the Colina deposit within the Salinas Lithium Project in Brazil, retaining its ‘buy’ recommendation for the company and marginally adjusting its 12-month target price to A$0.51 per share.
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Galileo Mining higher on executing farm-in with Mineral Resources for lithium rights at Norseman Project
Galileo Mining Ltd (ASX:GAL, OTC:GLMGF) is trading higher on inking a farm-in and joint venture (JV) agreement with major Australian mining company Mineral Resources Ltd (ASX:MIN) (Mineral Resources Ltd (ASX:MIN)) (MinRes) for lithium rights over the Norseman Project in Western Australia.
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St George Mining selects C1 as priority niobium-REE exploration target at Destiny
St George Mining Ltd (ASX:SGQ) will soon move to drilling at the Destiny Project in Western Australia, having leveraged a combination of magnetic and gravity surveys to identify the C1 niobium and rare earth elements (REE) target as the highest priority for further exploration.
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MetalsGrove fields initial groundwork results from Zimbabwe lithium projects; further investigation warranted
MetalsGrove Mining Ltd (ASX:MGA) has fielded results from initial geological mapping and surface sampling at the Arcturas Lithium Project (ALP) and Beatrice Lithium Project (BLP) in Zimbabwe.
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On your six
Energy transition puts super returns at risk, says HESTA
HESTA chief executive Debby Blakey has urged Australia to expedite efforts to meet the 2030 green targets, highlighting that superannuation returns are at risk if the climate transition does not accelerate.
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The one to watch
CuFe set for July 2024 drilling at North Dam with expanded program
CuFe Ltd (ASX:CUF) executive director Mark Hancock joins Proactive’s Jonathan Jackson to discuss heritage and exploration efforts at the North Dam Lithium Project in Western Australia on licences E15/1495 and M15/1841.
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