by Peter Milios
At noon, the S&P/ASX 200 is 0.60 per cent higher at 7,263.40 following strong results from the US markets on Friday. US stocks experienced a surge as regional bank shares rebounded and Apple, a market favourite, saw a significant increase in its stock price after announcing better-than-expected quarterly earnings.
April’s job numbers exceeded expectations, with the US economy adding 253,000 jobs compared to the expected 180,000.
Morgan Stanley believes that lithium markets have reached a turning point after a significant decline, with China’s carbonate and hydroxide prices rebounding by 30 per cent and 20 per cent, respectively. However, the price of spodumene concentrate continues to fall. The improvement in market sentiment is attributed to reduced inventories and slower supply growth, indicating a turning point, although cathode and battery cell producers have not fully returned to the spot market. Morgan Stanley expects the lithium market to tighten for the rest of the year, with potential upside risk to its forecasted average China lithium carbonate price of $25/kg in the second half of the year.
The SPI futures are pointing to a rise of 47 points.
Best and worst performers
The best-performing sector is Energy, up 1.7 per cent. The worst-performing sector is Consumer Staples, down 0.89 per cent.
The best-performing large cap is Lynas Rare Earths (ASX:LYC), trading 10.33 per cent higher at $7.26. It is followed by shares in Pilbara Minerals (ASX:PLS) and IGO (ASX:IGO).
The worst-performing large cap is Macquarie Group (ASX:MQG), trading 2.35 per cent lower at $173.19. It is followed by shares in Woolworths Group (ASX:WOW) and Coles Group (ASX:COL).
Asian news
Asia-Pacific markets are trading mixed on Monday after Wall Street snapped a four-day losing streak Friday.
Japan’s Nikkei 225 fell 0.7 per cent and the Topix traded 0.3 per cent lower despite the economy’s services sector seeing a record pace of expansion in April, the au Jibun Bank Japan services purchasing managers’ index showed.
Minutes from Japan’s March monetary policy meeting showed board members were concerned over inflation accelerating at a higher-than-expected pace.
South Korea’s Kospi rose 0.8 per cent and the Kosdaq was up 0.68 per cent.
Futures tied to Hong Kong’s Hang Seng index point to a lower open for the index, trading at 19,984 compared to its last close of 20,049.31.
Company news
Adelong Gold (ASX:ADG) announced that drilling at their Gibraltar deposit in NSW confirms wide zones of mineralisation and multiple intersections. MD Peter Mitchell commented: “The Perkin’s West deposit represents a major mineralised system with over 90 per cent of the 660 metres of samples drilled during the March program, carrying gold values.” Shares are trading 4.55 per cent higher at 1.2 cents.
After presenting at the Macquarie Australia Conference last week, Lynas Rare Earths (ASX: LYC, OTC:LYSDY) announces that its wholly owned subsidiary Lynas Malaysia has been advised that its licence to import and process lanthanide concentrate is now valid until 1 January 2024. This allows the Lynas Malaysia cracking and leaching plant to continue to operate. Shares are trading 10.6 per cent higher at $7.28.
Siren Gold (ASX:SNG) announces that their First hole at Auld Creek in NZ intersects 20.8 metres of gold at 12 grams per tonne. In response, Executive Chairman Brian Rodan commented, “Drilling is continuing, with updated results to be provided to the market over the coming weeks.” Shares are trading 15 per cent higher at 11.5 cents.
Commodities and the dollar
Gold is trading at US$2025.10 an ounce.
Iron ore is 0.4 per cent lower at US$103.65 a tonne.
Iron ore futures are pointing to a 1.16 per cent rise.
One Australian dollar is buying 67.53 US cents.
