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ASX closes 0.5% higher as interest rate sensitive stocks lift

PUBLISHED

2023-12-12

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The Australian sharemarket gained 0.5% as interest rate sensitive stocks rose ahead of the release of US inflation data. Technology stocks performed well, with WiseTech and Xero showing notable gains. Investors were cautious in anticipation of key US inflation figures and the upcoming Fed meeting, while bitcoin experienced a 7.5% drop, and oil prices steadied around $76 per barrel despite oversupply concerns.

Futures

The Dow Jones futures are pointing to a rise of 14 points.

The S&P 500 futures are pointing to a rise of 1.75 points.

The Nasdaq futures are pointing to a rise of 19.75 points.

The SPI futures are up 33 points.

Best and worst performers

The best-performing sector was Information Technology, up 2.12 per cent. The worst-performing sector was Materials closing flat.

The best-performing large cap was Xero (ASX:XRO), closing 3.79 per cent higher at $108.33. It was followed by shares in WiseTech Global (ASX:WTC) and Qube Holdings (ASX:QUB).

The worst-performing large cap was Lynas Rare Earths (ASX:LYC), closing 4.59 per cent lower at $6.03. It was followed by shares in IDP Education (ASX:IEL) and EBOS Group (ASX:EBO).

Asian markets

Japan's Nikkei has gained 0.10 per cent.

Hong Kong's Hang Seng has gained 0.84 per cent.

China's Shanghai Composite has gained 0.20 per cent.

Company news

Midas Minerals (ASX:MM1) announced a pegmatite discovery returns up to 7.25% lithium oxide at the Reid-Aylmer Project. The Company will immediately apply for a drilling
permit on the tenements over the Argus pegmatite. Shares closed 4.35 per cent lower at 11 cents.

Riversgold (ASX:RGL) announces that it has intercepted +100m wide gold at the Northern Zone Intrusive Hosted Gold Project located 25 km east of Kalgoorlie in Western Australia. In response, David Lenigas, Chairman of RGL, said, “with the Australian dollar gold price now pushing through $3,100 an ounce, the commerciality of these types of large-scale lower grade gold deposits becomes significantly more viable.” Shares closed 7.14 per cent lower at 1.3 cents.

Lithium Australia (ASX:LIT) has entered into a binding agreement with Charger Metals (ASX:CHR) to offload their minority interest in the Lake Johnston Lithium Project. The largely unexplored Lake Johnston Greenstone belt now hosts multiple spodumene discoveries and with the recent focus and increasing exploration activity could evolve into a prominent lithium province. Shares closed 7.14 per cent higher at 3.0 cents.

Commodities and the dollar

Gold is trading at US$2,001.30 an ounce.

Iron ore is 0.4 per cent lower at US$136.85 a tonne.

Iron ore futures are pointing to a 1.09 per cent rise.

Light crude is trading $0.51 higher at US$71.83 a barrel.

One Australian dollar is buying 65.95 US cents.

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