At noon, the S&P/ASX 200 is 0.06 per cent higher at 7,250.60, ahead of the RBA’s interest rate decision at 2:30 PM. Economists are divided on whether there will be a rate change, with some expecting another 25 basis point hike while others anticipate no change. Market pricing suggests a 30% chance of a rate increase. If rates remain unchanged, the market is likely to remain quiet, especially with the US on a holiday.
The SPI futures are pointing to a fall of 1 point.
Best and worst performers
The best-performing sector is Energy, up 0.81 per cent. The worst-performing sector is Communication Services, down 0.5 per cent.
The best-performing large cap is Pilbara Minerals (ASX:PLS), trading 5.24 per cent higher at $5.325. It is followed by shares in Lynas Rare Earths (ASX:LYC) and Whitehaven Coal (ASX:WHC).
The worst-performing large cap is Mercury NZ (ASX:MCY), trading 4.63 per cent lower at $5.77. It is followed by shares in ResMed (ASX:RMD) and Orica (ASX:ORI).
Asian markets
Asia-Pacific markets largely fell ahead of Australia’s central bank rate decision.
In Japan, the Nikkei 225 retreated from a new 33-year high recorded on Monday, falling 1.08%, with the Topix also recording a smaller loss of 0.71%.
South Korea’s Kospi fell 0.26%, while the Kosdaq also slid 0.49%. The country’s consumer price index grew at a slower rate of 2.7% in June, marking a fifth straight month of decline.
Mainland Chinese markets were also in negative territory, with the Shanghai Composite down 0.25% and the Shenzhen Component 0.19% lower. Hong Kong’s Hang Seng index bucked the trend, climbing 0.22% and led by energy and industrial stocks.
Company news
DroneShield (ASX:DRO) has been awarded a contract by a Five Eyes Department of Defence. This is a follow-on two-year R&D contract with a total value of $9.9 million. Oleg Vornik, DroneShield’s CEO, commented, “DroneShield is proud and pleased to continue undertaking multi-year contracts of increasing size with this customer.” Shares are trading 18.9 per cent higher at 26.8 cents.
Nickel X (ASX:NKL) has executed an option to acquire 100 per cent of an advanced nickel and hard rock lithium exploration project in Central Europe. Managing Director Matt Gauci commented: “The projects are exceptionally well located, almost on the doorsteps of 27 lithium battery ‘Gigafactories’ in Europe planned for 2030.” Shares are trading 40.3 per cent higher at 9.4 cents.
QX Resources (ASX:QXR) has acted as the underwriter to the rights issue of Bayrock Resources, and has now secured a 39 per cent interest in issued capital of the company. Executive Chairman Maurice Feilich commented, “Bayrock has received excellent support from its existing shareholder base, and together with QXR’s investment, the company is sufficiently capitalised to deliver further value through ongoing drilling in Sweden.” Shares are trading 20 per cent higher at 2.4 cents.
Commodities and the dollar
Gold is trading at US$1782.70 an ounce.
Iron ore is 0.9 per cent lower at US$110.55 a tonne.
Iron ore futures are pointing to a 0.1 per cent fall.
One Australian dollar is buying 66.81 US cents.
