The ASX was on the slide today.
The S&P/ASX200 dropped 4.70 points Tuesday to 7,141.60. Over the last five days, the index has gained 2.63% but is down 4.07% for the last year to date.
Bottom-performing stocks in this index were Core Lithium Ltd (ASX:CXO) down 15.28% and Allkem Ltd down 11.81%.
Of the sectors, Healthcare and Information Technology were in the green up 1.41% and 1.68% respectively. Most other sectors were flat, with Real Estate and Materials leading the downturn falling 1.30% and 1.01% respectively.
Making news today
RBA reputation damaged … will still hike rates
The Reserve Bank of Australia will continue to lift the cash rate to curb inflation, despite admitting that its reputation is now damaged.
The RBA conducted an internal review into its guidance and messaging during the pandemic and found the messaging to be “overly complex”.
Most Australians were under the impression the central bank would not lift rates until 2024, even when they were sitting at record lows in February 2021.
What the RBA said was that it would not increase the cash rate until inflation was at 2 to 3% and that wages growth and low unemployment required to hit the range was not expected "to be met until 2024 at the earliest".
What stuck most in the messaging was the reference to 2024.
"It was often interpreted that the RBA had promised that interest rates would not increase until 2024, with the statements about conditionality being downplayed," the review noted.
"The fact that many people interpreted the forward guidance as ‘a promise’ that there would be no rate raises until 2024 led to considerable reputational damage to the bank.
"When the cash rate was increased in May 2022, many people saw the bank as having broken its promise."
Despite the damage, the RBA is still prorated to lift rates by 50 basis points if it has to.
In its November minutes, it said it has "determination to return inflation to target".
The minutes state that the RBA determined a smaller increase to be enough in the last instance of rate rises stating "that acting consistently would support confidence in the monetary policy framework among financial market participants and the community more broadly".
The RBA board is determined to return inflation to target and stated it "expects to increase interest rates further over the period ahead in its effort to establish a more sustainable balance of demand and supply in the Australian economy".
Any rise now will be determined by the outlook for inflation and the labour market.
"The board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that outcome," the minutes said.
From the dark side – what’s happening in crypto
eToro's market analyst and crypto expert Simon Peters gives his take on the world of crypto.
Negative market environment weighs on bitcoin
The current negative market environment has weighed heavily on most cryptos but with some specific factors now affecting bitcoin as holders look to protect their positions from market volatility.
The fall in price levels is remarkably similar to the 2018 bear market, with bitcoin falling to fresh lows almost exactly a year to the day since it reached a new ATH. Positive inflation data has stabilised the price somewhat but lagged the bounce seen in equities.
Elsewhere, JPMorgan (NYSE:JPM) has made a fresh price prediction on the world’s largest cryptoasset, saying it could fall by another 25% - pushing the price as low as $13,000, drawing comparisons with the previous market tumble in May with the collapse of terra.
Bitcoin energy usage spikes - report
A new global bitcoin mining report from the Bitcoin Mining Council has shown the cryptoasset’s energy usage has spiked in the past year. The report says bitcoin mining energy usage has risen 41% but efficiency has increased by around 23%, particularly thanks to the growing use of green energy sources.
The use of energy by bitcoin miners to validate blocks has been much criticised in recent months, particularly with the onset of The Merge of the Ethereum network, which purports to slash energy consumption by more than 99%.
But the report argues that Bitcoin still only uses around 0.16% of the globe’s energy resources, emitting just 0.1% of carbon emissions - calling that a “negligible” amount. While that might be the case, the network continues to draw criticism and this is now one of the clear dividing lines between it and its biggest competitor.
FIFA launches blockchain games ahead of World Cup
World football governing council FIFA has launched a set of four blockchain-based games ahead of the men’s football World Cup, which kicks off on Sunday. The launch includes an AI game, a metaverse-focused game called Uplandme, based on the already extant Upland metaverse, and two others.
eSports is one of the fastest-growing tech sectors in the world, with players and games now commanding large audiences and big fees. Although these four FIFA games are perhaps somewhat gimmicky, it is an opportunity for world football to capitalise on the growing market amid a big international live sporting event.
For many young people, their access point to sports such as football is online-first. These digital natives are comfortable interacting with the sport through the gaming medium. In terms of the blockchain applications of the games, one includes NFT-like facets which allow players to build their own piece of FIFA World Cup pictures and moments, while the metaverse game Upland includes the real ownership of digital property rights.
Five at five
Talon Energy has a world-scale resource on the doorstep of the world’s largest gas consumer: MST Access
Talon Energy Ltd (ASX:TPD) has prospective gas resources in the Perth Basin, Western Australia and the South Gobi Basin, Mongolia.
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Castillo Copper makes clay-hosted REE discovery at Broken Hill with grades up to 2,410 ppm TREO
"This is a game-changing event for the group, as exploration efforts moving forward are going to focus on extending known REE mineralisation, especially at the Fence Gossan and Iron Blow prospects in due course," Castillo Copper Ltd (ASX:CCZ, ASX:CCZ)’s chairman Ged Hall said.
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Celsius Resources gains social licence from local Indigenous peoples to develop MCB Copper-Gold Project in Philippines
The social licence to operate is a key milestone for Celsius Resources Ltd (ASX:CLA) as the MCB Project in northern Luzon moves closer to mine construction and operations.
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Star Minerals strikes shallow high-grade gold at Star of the East
“The assays confirm our initial assessment of Star of the East and further support our decision to sign the option agreement to gain access to this gold deposit," Star Minerals Ltd (ASX:SMS) CEO Greg Almond said.
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Kingfisher (LON:KGF) Mining adds new 18-kilometre REE target corridor with extra tenements
Kingfisher Mining Ltd (ASX:KFM) will shortly start target generation work for the new Mooloo project in the Gascoyne region of WA.
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On your six
Australian Cyber Security Centre assesses ransomware as “most destructive” cybercrime for organisations
The centre says that ransomware groups have further evolved their business model, seeking to maximise their impact by targeting the reputation of the victim organisations.
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The one to watch
White Rock Minerals new exec director outlines portfolio plans and ambitions
White Rock Minerals Ltd (ASX:WRM, OTCQX:WRMCF) executive director Simon Finnis speaks with Proactive soon after taking on the role.
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