Oil stabilises as Saudi Arabia and Russia commit to supply cuts, while the market faces challenges from China's economic slowdown, central banks' tightening policies, and the US purchasing additional crude for its Strategic Petroleum Reserve.
At noon, the S&P/ASX 200 is 0.11 per cent higher at 7,050.
The SPI futures are pointing to a rise of 16 points.
Best and worst performers
The best-performing sector is Energy, up 0.87 per cent. The worst-performing sector is Consumer Staples, down 0.54 per cent.
The best-performing large cap is Meridian Energy (ASX:MEZ), trading 2.77 per cent higher at $5.19. It is followed by shares in Northern Star Resources (ASX:NST) and Liontown Resources (ASX:LTR).
The worst-performing large cap is Treasury Wine Estates (ASX:TWE), trading 1.58 per cent lower at $10.61. It is followed by shares in Atlas Arteria (ASX:ALX) and Medibank Private (ASX:MPL).
Asian markets
Asia-Pacific markets are mixed ahead of key inflation reports this week, including the U.S. consumer price index report due Wednesday and the producer price index on Thursday.
In the region, China’s consumer price index was flat in June year-on-year, its lowest level since February 2021. Meanwhile, producer prices fell 5.4% year-on-year, the fastest rate of decline since December 2015.
U.S. Treasury Secretary Janet Yellen concluded her visit to Beijing, and said that the talks were “direct” and “productive,” putting bilateral ties on “surer footing.”
In Japan, the Nikkei 225 fell 0.87%, extending losses after dipping more than 1% on Friday, with the Topix seeing a 0.61% loss.
South Korea’s Kospi was 0.26% higher, while the Kosdaq saw a loss of 0.33%. Australia’s S&P/ASX 200 rose 0.15%.
Hong Kong’s Hang Seng index rebounded and climbed 1.57%, with mainland Chinese markets also all higher. The Shanghai Composite gained 0.38% and the Shenzhen Component rose 0.56% on Monday.
Company news
Forrestania Resources (ASX:FRS) has announced a JV with ALX Resources for the Hydra Lithium Project in Quebec, Canada. We heard from MD Michael Anderson this morning.” Shares are trading 18.2 per cent higher at 13 cents.
Artemis Resources (ASX:ARV) has identified lithium bearing pegmatites on the Osborne Joint Venture in the West Pilbara region. Further work is planned on the JV tenement with sampling and mapping aimed at identifying the full extent of the mineralised pegmatite zone. Shares are trading 5 per cent higher at 2.1 cents.
DevEx Resources (ASX:DEV) announced that their positive leaching testwork has confirmed significant ionic adsorption REE clays at their Kennedy Project in Queensland. Significant Tb and Dy grades are reported in several holes including those mentioned above for individual rare earth oxide values. Shares are trading 3.7 per cent higher at 28 cents.
Commodities and the dollar
Gold is trading at US$1930.50 an ounce.
Iron ore futures are pointing to a 1.2 per cent fall.
One Australian dollar is buying 66.85 US cents.
