The Australian sharemarket was up today, gaining 125.30 points or 1.77% to 7,186.90 and setting a new 50-day high.
Mining stocks were prominent, with the top-performing stocks being Core Lithium and Chalice Mining, up 14.13% and 13.47% respectively.
Over the last five days, the index has gained 2.15% and 2.11% year to date.
Every sector was in the green or black after lunch, with Real Estate and Consumer Staples both up more than 2% after lunch. Utilities and Energy were up the least, 0.25% and 0.53% respectively.
RBA gives us a festive break
Markets were buoyant on the back of the released reasoning behind the RBA’s decision to keep interest rates on hold on Tuesday. These point to a potentially dovish forecast for the coming months, with data shocks such as inflation or jobs growth priced in.
“Following yesterday's dovish RBA on-hold decision and today's subpar Q3 GDP print, a significant shift has occurred in RBA pricing for 2024,” said analyst Tony Sycamore.
“The rates market sees the RBA's peak terminal rate at 4.35%. There is now a 50% chance of a 25bp rate cut by June next year and a full 25bp cut priced for November 2024 – exactly 12 months after the RBA delivered its last rate hike.
“If the ASX200 can see a sustained break above the 200-day moving average at 7,160, it will open up a move towards range highs of 7,380/7,400.”
eToro market analyst Farhan Badami added: "Australia experienced an unexpected slowdown in its economy as GDP rose by 0.2% for the third quarter of the year – a far reach from the market predictions of 0.4%-0.5% growth for the September quarter.
“This quarterly GDP figure equates to an annualised growth rate of 2.1%, which falls on the lower end of the spectrum for Australian standards. This deceleration was largely spurred by the impact of increased interest rates on consumers.
“Additionally, Australia's current account shifted into a deficit due to the decline in prices for certain commodity exports, ultimately impacting net exports and trade.
“Despite the grim figures, several factors actually contributed to overall growth. Government spending, private investments and public demand levels supported economic growth over the third quarter.
“A noteworthy takeaway was the decline in the household savings ratio, dropping from 2.8% to 1.1%, marking the lowest level recorded since December 2007 – a reminder of the negative impact high inflation has on households.
“Consumers face challenges as wages struggle to keep pace with climbing inflation, making it difficult to afford costly necessities. Additionally, climbing interest rates mean that Australians with mortgages have found it increasingly difficult to save in 2023.
“While markets broadly aren’t pricing in rate hikes over Q1 2024, the RBA will be compelled to take action if inflation persists, as they have emphasised their commitment to directly responding to data trends."
The five at five
Imugene to open new PD1-Vaxx Phase 2 bowel cancer clinical trial in UK and Australia
Imugene Ltd (ASX:IMU, OTC:IUGNF) is preparing 10 clinical trial sites in Australia and the UK for a new PD1-Vaxx Phase 2 colorectal (CRC) cancer clinical trial set to begin in 2024. In other news, the European Patent Office has also issued a notification of Intention to Grant a patent for the PD1-Vaxx cancer vaccine.
Read more
Alto Metals identifies new 6-kilometre-long gold target at Sandstone North
Alto Metals Ltd (ASX:AME) has leveraged a combination of fine fraction soil results, a review of recent and historical drilling data, and a geological structural interpretation to identify a major new gold trend at Sandstone North prospect of the Sandstone Gold Project in Western Australia.
Read more
St George Mining fields “ground-breaking” rare earths up to 5,125 ppm TREO in maiden Destiny drilling
St George Mining Ltd (ASX:SGQ) has intersected a significant clay-hosted rare earth elements (REE) system described as “ground-breaking” at the Destiny Project in the Eastern Goldfields of Western Australia.
Read more
Latin Resources lifts Salinas global lithium resource by 56% to 70.3 million tonnes at 1.27%
Latin Resources Ltd (ASX:LRS, OTC:LRSRF) has increased the global mineral resource estimate at its Salinas Lithium Project in Brazil by 56%, lifting the project’s resource to 70.3 million tonnes grading 1.27% lithium oxide.
Read more
Lanthanein Resources soars on farm-in deal for 70% stake in Lady Grey Lithium Project
Lanthanein Resources Ltd (ASX:LNR, OTC:FRNRF) has skyrocketed on entering into a pivotal farm-in agreement to earn up to a 70% stake in the Lady Grey Lithium-Tantalum Project, about 365 kilometres east of Perth in what the company claims is one of the most desired jurisdictions for lithium explorers in Western Australia.
Read more
On your six
Livestock, medtech and horticulture are key AI opportunities for Australia: National AI Centre
Australia is poised to become a global leader in artificial intelligence (AI), according to a new report by the National AI Centre, part of the national science agency CSIRO.
Read more
The one to watch
Firebird Metals advancing PFS on manganese sulphate production
Firebird Metals Ltd (ASX:FRB, OTC:FRBMF) MD Peter Allen tells Proactive the company continues to efficiently progress key activities in China as it works towards becoming a near-term producer of battery-grade manganese sulphate.
Watch