by Peter Milios
The Reserve Bank’s minutes for May indicate that the central bank is committed to reducing inflation. The Board expressed its determination to take the necessary actions to bring inflation back to its target level. It acknowledged that there may be a need for further interest rate increases depending on the evolution of the economy and inflation.
The minutes also mentioned that the bank’s decision to pause in April was partly influenced by changes in asset prices. The depreciation of the exchange rate and the increase in housing prices were specifically noted. While the central bank does not directly target asset prices, it acknowledged that movements in asset prices provide important information that should be considered when assessing economic activity and inflation outlook.
At noon, the S&P/ASX 200 is 0.15 per cent lower at 7,256.40.
The SPI futures are pointing to a fall of 21 points.
Best and worst performers
The best-performing sector is Materials, up 0.70 per cent. The worst-performing sector is Consumer Staples, down 1.01 per cent.
The best-performing large cap is James Hardie Industries plc (ASX:JHX), trading 7.83 per cent higher at $36.65. It is followed by shares in Pilbara Minerals (ASX:PLS) and Meridian Energy (ASX:MEZ).
The worst-performing large cap is TPG Telecom (ASX:TPG), trading 1.88 per cent lower at $5.495. It is followed by shares in Worley (ASX:WOR) and IDP Education (ASX:IEL).
Asian news
Asia-Pacific markets are trading mixed ahead of key economic releases from China.
Investors await China’s industrial production, retail sales, and unemployment rate among others. Compared to a low base seen in April a year ago, market watchers are largely expecting a rebound in growth.
Hong Kong’s Hang Seng index climbed 0.72 per cent in early trade, while the Shanghai Composite was marginally lower and the Shenzhen Component fell 0.22 per cent.
In Japan, the Nikkei 225 rose 0.74 per cent, while the Topix climbed 0.41 per cent and hit its highest level since August 1990. South Korea’s Kospi and Kosdaq also saw gains on Tuesday, advancing 0.37 per cent and 0.44 per cent respectively
Company news
Building upon a 20-year commercial foundation, Capricorn Society has selected Spenda (ASX:SPX) as its preferred supplier to deliver the first phase of its Digital Service Delivery initiative. Spenda’s CEO and MD Adrian Floate, added: “Being selected to work with Capricorn on this significant project shows faith in both in our services and in our ability to deliver to Capricorn’s vision.” Shares are trading 8.3 per cent higher at 1.3 cents.
Global luxury online retailer, Cettire (ASX:CTT), provided a trading update, in which sales revenue shot up 122 per cent, versus prior corresponding period. Cettire’s Founder and CEO, Dean Mintz, said: “It is particularly pleasing to see the Company’s localisation strategy is delivering results, with revenue from its emerging markets outpacing the Group.” Shares are trading 13.4 per cent higher at $2.12.
Immutep (ASX:IMM) receives positive feedback from FDA regarding the Company’s late-stage clinical development plans for its first-in-class soluble LAG-3 protein. Immutep CEO, Marc Voigt, commented: “this meeting with the FDA is a critical step in our late-stage development process for 1st line non-small cell lung cancer.” Shares are trading 2.22 per cent higher at 23 cents.
Commodities and the dollar
Gold is trading at US$2022.20 an ounce.
Iron ore is 5.2 per cent higher at US$108.40 a tonne.
Iron ore futures are pointing to a 1.81 per cent rise/fall.
One Australian dollar is buying 67.00 US cents.
