by Peter Milios
The RBA is likely to pause rates, as the economy stabilises. This decision is based on the need to monitor how the economy performs in light of the increased number of mortgage resets.
It is anticipated that the Federal Reserve will increase the Fed funds rate by 0.25 points, bringing the range to 5 per cent to 5.25 per cent on Thursday (AEST). The market indicates an 88 per cent probability of this occurring. However, there are expectations of interest rate reductions in the latter half of the year, which would result in the benchmark dropping to 4.5 per cent by Christmas.
While gold is often recognised as an effective hedge against inflation, a rise in interest rates typically reduces the appeal of this non-yielding precious metal.
At noon, the S&P/ASX 200 is 0.56 per cent higher at 7,350.
The SPI futures are pointing to a rise of 36 points.
Best and worst performers
The best-performing sector is Energy, up 1.63 per cent. The worst-performing sector is Information Technology, down 0.03 per cent.
The best-performing large cap is ResMed (ASX:RMD), trading 6.29 per cent higher at $35.83. It is followed by shares in Whitehaven Coal (ASX:WHC) and AGL Energy (ASX:AGL).
The worst-performing large cap is Newcrest Mining (ASX:NCM), trading 1.56 per cent lower at $28.47. It is followed by shares in Mineral Resources (ASX:MIN) and WiseTech Global (ASX:WTC).
Company news
Evolution Energy (ASX:EV1) has announced that drilling has confirmed a new discovery of high-grade graphite mineralisation at their Chilalo project in Tanzania. Evolution’s Managing Director, Phil Hoskins, commented: “These results clearly demonstrate the scope to materially grow the Chilalo mineral resource and thereby potentially enable a production expansion, extension to mine life and reduction in mining costs.” Shares are trading 1.92 per cent lower at 25.5 cents.
Meteoric Resources (ASX:MEI) has announced that their Maiden Mineral Resource revealed their Caldeira REE Project in Brazil as the world’s highest grade ionic adsorption clay REE deposit. Chief Executive Officer, Nick Holthouse added: “the work rate now will start to build and the focus will be assembling the right team to take the Caldeira REE Project forward.” Shares are trading 7.14 per cent lower at 16.3 cents.
Alliance Nickel (ASX:AXN) executes Binding Offtake Agreement and Cornerstone Equity Investment with Stellantis N.V. Alliance Managing Director and CEO, Mr. Paul Kopejtka said, “It validates our development strategy for the NiWest Nickel-Cobalt Project and opens critical new funding options by securing a premier Tier 1 cornerstone customer and investor.” Shares are trading 31.6 per cent higher at 12.5 cents.
Commodities and the dollar
Gold is trading at US$1991.40 an ounce.
Iron ore is 0.4 per cent higher at US$106.50 a tonne.
Iron ore futures are pointing to a 0.9 per cent fall.
One Australian dollar is buying 66.19 US cents.
