by Peter Milios
The US Senate has passed comprehensive legislation that suspends the $US31.4 trillion debt ceiling and includes federal spending cuts. This legislation supports a bipartisan agreement reached by President Biden and House Speaker Kevin McCarthy, aiming to prevent an unprecedented default by the United States. The vote, with a tally of 63-36, garnered support from both Democrats and Republicans. Supporters of the bill argued that the necessity of raising the nation’s borrowing limit outweighed concerns over contentious issues such as military and domestic spending and energy policy. The measure now awaits the president’s signature, providing several days of leeway before June 5, the date when the Treasury Department has warned that the government will exhaust its funds to pay all its obligations.
At the closing bell, the S&P/ASX 200 was 0.48 per cent higher at 7,145.10. However, it experienced a slight decline of 0.1 per cent for the second consecutive week.
In the US, Wall Street witnessed positive gains, with the S&P 500 rising by 1 per cent, the Nasdaq Composite increasing by 1.3 per cent, and the Dow Jones gaining 0.5 per cent. At the close, the Australian dollar was valued at US66.10c.
Iron ore futures for July delivery on the Singapore exchange (SGX) increased by 1.3 per cent to $US103.45. This surge was driven by optimism that China would implement stimulus measures to revive its slowing economy. According to ANZ, Chinese iron ore shipments from Australia rose to 17.9 million tonnes in the week ending May 19, compared to 17 million tonnes the previous week. This positive news boosted investor confidence, leading to a 2.8 per cent rise in shares of mining giants BHP Group (ASX: BHP), a 2.1 per cent increase in Rio Tinto’s (ASX: RIO) shares, and a 1.6 per cent gain in Fortescue Metals’ (ASX: FMG) shares.
Futures
The Dow Jones futures are pointing to a rise of 75 points.
The S&P 500 futures are pointing to a rise of 8 points.
The Nasdaq futures are pointing to a rise of 31 points.
The SPI futures are pointing to a rise of 30 points when the market next opens.
Best and worst performers
The best-performing sector was Materials, up 2.44 per cent. The worst-performing sector was Consumer Staples, down 1.27 per cent.
The best-performing large cap was IDP Education (ASX:IEL), closing 6.30 per cent higher at $21.75. It was followed by shares in Newcrest Mining (ASX:NCM) and BlueScope Steel (ASX:BSL).
The worst-performing large cap was Brambles (ASX:BXB), closing 2.55 per cent lower at $13.38. It was followed by shares in Mercury NZ (ASX:MCY) and Qube Holdings (ASX:QUB).
Asian markets
Japan’s Nikkei has gained 1.21 per cent.
Hong Kong’s Hang Seng has gained 4.11 per cent.
China’s Shanghai Composite has gained 1.28 per cent.
Company news
Magnis (ASX:MNS; OTCQX:MNSEF; FSE:U1P) has announced that iM3NY has successfully completed 6 out of the 7 relevant tests for UN38.3 certification, with 1 result now pending. The UN38.3 process involves a series of tests, designed to simulate the conditions that the cells may be exposed to during transportation. Shares closed 12.9 per cent higher at 17.5 cents.
Aurora Labs (ASX:A3D) signs a MOU with Aramco, one of the world’s leading integrated energy and chemicals companies. Peter Snowsill, Aurora’s CEO commented: “[we can leverage] Aurora Labs’ technology with Aramco’s vast energy industry experience.” Shares closed 23.8 per cent higher at 2.6 cents.
Grand Gulf Energy (ASX:GGE) announced that the independent review confirms significant helium flow potential at their wells. MD Dane Lance commented: “The Company now has a range of opportunities across the Red Helium project, and we look forward to being back in the field to confirm the modeling results with a successful flow test.” Shares closed 33.33 per cent higher at 1.2 cents.
Commodities and the dollar
Gold is trading at US$1,995.68 an ounce.
Iron ore is 1.1 per cent higher at US$104.35 a tonne.
Iron ore futures are pointing to a 3.58 per cent rise.
Light crude is trading $0.64 higher at US$70.74 a barrel.
One Australian dollar is buying 66.13 US cents.
