by Peter Milios
Overnight, the S&P 500 increased by 0.7 per cent, while the Nasdaq index rose by 0.8 per cent, and the Dow Jones Industrial Average gained 0.4 per cent.
The value of the US dollar was around 67.70 cents at the market’s opening.
Oil steadied after rising more than 3 per cent on Tuesday on signs that China is shifting into stimulus mode and after the US said it plans to replenish strategic reserves.
West Texas Intermediate traded above $US69 a barrel. Beijing is considering broad stimulus measures to shore up its economy, while slowing inflation could give the Federal Reserve room to pause interest rate hikes for the first time in 15 months.
Oil stabilised after rising more than 3 per cent on Tuesday due to signs that China is shifting into stimulus mode and after the US stated its plans to replenish strategic reserves.
West Texas Intermediate traded above $69 a barrel. Beijing is contemplating broad stimulus measures to bolster its economy, while slowing inflation could provide the Federal Reserve with an opportunity to pause interest rate hikes for the first time in 15 months.
At noon, the S&P/ASX 200 is 0.19 per cent higher at 7,152.50.
The SPI futures are pointing to a rise of 14 points.
Best and worst performers
The best-performing sector is Materials, up 2.39 per cent. The worst-performing sector is Health Care, down 5.4 per cent.
The best-performing large cap is Allkem (ASX:AKE), trading 4.1 per cent higher at $15.98. It is followed by shares in IGO (ASX:IGO) and Fortescue Metals Group (ASX:FMG).
The worst-performing large cap is CSL (ASX:CSL), trading 7.65 per cent lower at $284.88. It is followed by shares in Auckland International Airport (ASX:AIA) and Xero (ASX:XRO).
Asian news
Asia-Pacific markets are largely higher as the inflation in the U.S. rose at a 4 per cent annual rate in May, the lowest in two years. This gives room for the Federal Reserve to pause and skip a rate hike when they meet later this week.
In Japan, the Nikkei 225 popped 1.05 per cent on its open, inching closer to the Nikkei’s all time high is just under 39,000 points in December 1989. The Topix also continued to set new year highs, climbing 0.85 per cent.
South Korea’s Kospi slipped 0.22 per cent and the Kosdaq traded close to the flatline.
South Korea’s unemployment rate came in at 2.5 per cent for May, falling for the second straight month and lower than the 2.6 per cent recorded in April.
Hong Kong’s Hang Seng index is also set for a strong open, with futures at 19,535 compared to the HSI’s close of 19,521.42.
Company news
Golden Mile Resources (ASX:G88) announced the highest-ever nickel grades at their Quicksilver project in WA. MD Damon Dormer said, “We have a significantly higher-grade -zone within the overall Resource with the potential of disseminated nickel mineralisation.” Shares are trading 113 per cent higher at 5.1 cents.
NickelSearch (ASX:NIS) announced that their Sexton Prospect diamond drillhole intersects massive sulphide mineralisation at depth. MD, Nicole Duncan, commented: “[This] intersection confirms the presence of massive sulphide mineralisation at depth and gives us significant optimism.” Shares are trading 14.1 per cent higher at 7.3 cents.
Encounter Resources (ASX:ENR) announced that there diamond drill program has been expanded at their project in WA. MD Will Robinson said: “The survey…has resolved into a suite of structurally complex density anomalies interpreted as potential alkaline intrusions.” Shares are trading 6.25 per cent higher at 25.5 cents.
Commodities and the dollar
Gold is trading at US$1959.70 an ounce.
Iron ore is 0.4 per cent higher at US$112.90 a tonne.
Iron ore futures are pointing to a 1.82 per cent rise.
One Australian dollar is buying 67.81 US cents.
