by Peter Milios
Australia’s retail sales volume in the March quarter declined by 0.6 per cent, in line with expectations, marking the second consecutive quarterly decrease, attributed to ongoing household spending constraints resulting from rising living costs, with retail prices remaining high but experiencing slower growth of 0.6 per cent this quarter, driven by discounts on clothing and large household items while food retailing prices continued to rise, according to the Australian Bureau of Statistics (ABS).
Overall, at noon, the S&P/ASX 200 is 0.27 per cent lower at 7,256.90.
On Wall Street, the S&P 500 index ended the day with a slight increase of 0.1 per cent. The Nasdaq Composite index, which focuses on technology stocks, saw a modest gain of 0.2 per cent. However, the Dow Jones Industrial Average closed with a slight decline of 0.2 per cent.
Additionally, the Australian dollar is currently trading close to US67.79 cents.
US President Joe Biden is holding a crucial meeting with Republican leaders to resolve the impasse over the US debt limit, which could have far-reaching implications for the next presidential election, with the gathering marking the decisive stage of a power struggle that poses significant risks to the world’s largest economy.
The SPI futures are pointing to a fall of 23 points.
Best and worst performers
The best-performing sector is Financials, up 0.1 per cent. The worst-performing sector is REITs, down 1.24 per cent.
The best-performing large cap is Infratil (ASX:IFT), trading 4.35 per cent higher at $8.88. It is followed by shares in Incitec Pivot (ASX:IPL) and Allkem (ASX:AKE).
The worst-performing large cap is Meridian Energy (ASX:MEZ), trading 1.78 per cent lower at $4.97. It is followed by shares in Sonic Healthcare (ASX:SHL) and Fisher & Paykel Healthcare Corporation (ASX:FPH).
Asian news
Asia-Pacific markets traded largely lower ahead of China’s April trade data release as well as U.S. inflation reports later this week.
China is projected to record a trade surplus of $74.3 billion, lower than the $88.2 billion in March, according to a Reuters poll.
South Korea’s Kospi was 0.47 per cent down, with the Kosdaq also shedding 0.39 per cent.
Mainland Chinese markets reversed their gains from Monday, with the Shenzhen Component 0.42 per cent down and the Shanghai Composite marginally lower.
Hong Kong’s Hang Seng index dropped 0.42 per cent, while the Hang Seng Tech index slid 1.12 per cent.
Japan’s the only outlier in the region, with the Nikkei 225 up 0.7 per cent and the Topix 0.76 per cent higher, powered by gains in basic materials and energy stocks. Japan saw a reduction in household spending in April despite economists surveyed by Reuters expecting to see growth.
Company news
North Stawell Minerals (ASX:NSM) announced that their air core drilling program intersected broad, low-grade anomalous gold zones at their Challenger Prospect. In response, Chief Executive Russell Krause said: “Importantly, 7 of the holes end in anomalous grade and many holes include thick intercepts.” Shares are trading 2.06 per cent higher at 9.9 cents.
Radiopharm Theranostics (ASX:RAD) announced that they have received FDA orphan drug designation for RAD 301 in pancreatic cancer. CEO and Managing Director, Riccardo Canevari, commented, “The FDA’s decision highlights the significant demand for effective imaging agents for improved and earlier diagnosis of pancreatic cancer.” Shares are trading flat 17 cents.
Voltaic Strategic Resources (ASX:VSR) announced several thick pegmatites have been intercepted from the surface at TiTree project in WA. Voltaic chief executive Mr Michael Walshe, ““We now have a much-improved model of the regional pegmatites at Ti Tree in terms of structure, down-hole continuity and zonation.” Shares are trading 77.8 per cent higher at 4.8 cents.
Besra Gold (ASX:BEZ) entered into a binding gold purchase agreement for up to US$300m signed with major shareholder Quantum Metal Recovery. Executive Chair, Jocelyn Bennet, commented: “The announcement of progress of this landmark agreement, as well as the accompanying corporate changes, moves Besra’s Bau Gold Project closer to production.” Shares are trading 31.8 per cent higher at 29 cents.
Commodities and the dollar
Gold is trading at US$2029.40 an ounce.
Iron ore is 6.1 per cent higher at US$109.95 a tonne.
Iron ore futures are pointing to a 2.34 per cent rise.
One Australian dollar is buying 67.81 US cents.
