by Peter Milios
The Reserve Bank of Australia discussed the possibility of raising interest rates by 25 basis points but ultimately decided to pause and let previous rate increases take effect. The RBA noted the importance of clear communication that monetary policy may need to be tightened in subsequent meetings but that the purpose of pausing at this meeting was to gather more information on the economic outlook.
At noon, the S&P/ASX 200 is 0.34 per cent lower at 7,356.70.
The SPI futures are pointing to a fall of 22 points.
Best and worst performers
The best-performing sector is Materials, up 0.27 per cent. The worst-performing sector is Energy, down 1.58 per cent.
The best-performing large cap is Pilbara Minerals (ASX:PLS), trading 5 per cent higher at $3.99. It is followed by shares in Allkem (ASX:AKE) and Whitehaven Coal (ASX:WHC).
The worst-performing large cap is ASX (ASX:ASX), trading 2.28 per cent lower at $68.69. It is followed by shares in Ampol (ASX:ALD) and Ramsay Health Care (ASX:RHC).
Asian markets
China’s economy saw a stronger rebound than expected in the first quarter of 2021, with gross domestic product (GDP) growing by 4.5 per cent, compared to the expected 4 per cent. Retail sales also exceeded expectations, increasing by 10.6 per cent, compared to the expected 7.5 per cent. However, equities traders did not react significantly to the news, with China’s A50 Index briefly rising before giving back those gains.
Asia-Pacific markets were largely down on Tuesday as Wall Street’s earnings season continues and investors await a slew of economic data out of China, most notably, its first quarter gross domestic product.
South Korea’s Kospi fell 0.37 per cent and the Kosdaq shed 0.13 per cent.
Hong Kong’s Hang Seng Index was 0.71 per cent lower, while on mainland China, the Shanghai Composite dropped 0.24 per cent and the Shenzhen Component was marginally lower.
Japanese markets seemed to be the outlier in the region, with the Nikkei 225 was up 0.61 per cent and the Topix gaining 0.76 per cent.
Company news
Larvotto Resources (ASX:LRV) announced bonanza grade results of total rare earth element oxide (TREO) results from recent aircore drilling at the company’s Merivale South Prospect in Western Australia. Managing Director, Mr Ron Heeks commented: “Today’s results are exceptionally high-grade intervals for ionic clay mineralisation and come from shallow depth.” Shares are trading 85.2 per cent higher at 25 cents.
OD6 metals (ASX:OD6) announced bumper rare earth grades and extensive thicknesses at its Splinter Rock project in WA. Brett Hazelden, Managing Director, commented: “These exceptional drill results represent some of the highest rare earth grades, over some of the thickest intersections seen in an Australian clay hosted rare earth project.” Shares are trading 32.2 per cent higher at 39 cents.
Magnetite Mines (ASX:MGT) has announced that they have signed a land access agreement enabling access to rail-side concentrate transfer location, supporting the stage 1 development and expansion case. MGT CEO Tim Dobson commented, “The planned infrastructure at the existing Hillgrange rail siding will be Razorbacks connection to global markets, enabling access to the national rail network for the delivery of our high-grade iron ore products to customers.” Shares are trading 0.85 per cent higher at 59 cents.
Commodities and the dollar
Gold is trading at US$1782.70 an ounce.
Iron ore futures are pointing to a 3.05 per cent rise.
One Australian dollar is buying 67.17 US cents.
