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ASX down 0.48% at noon as oil prices stabilise

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2023-09-13

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At noon, the S&P/ASX 200 is 0.48 per cent lower at 7,172.30.

Oil prices recently surged to a 10-month high but have stabilised, with West Texas Intermediate trading at around $89 per barrel. This increase was driven by forecasts from OPEC and the US, indicating that production cuts will tighten the oil market in the coming months. OPEC anticipates a significant daily shortfall of 3.3 million barrels in the fourth quarter, while the US Energy Information Administration predicts a more modest 230,000-barrel deficit. This optimistic outlook has contributed to the ongoing rally, which began in mid-June due to supply cuts from Saudi Arabia and Russia and steady demand from the US and China. The International Energy Agency's upcoming monthly report is expected to provide further insights into the market's condition.

The SPI futures are pointing to a fall of 32 points.

Best and worst performers

The best-performing sector is Energy, up 0.38 per cent. The worst-performing sector is Information Technology, down 1.31 per cent.

The best-performing large cap is Liontown Resources (ASX:LTR), trading 2.33 per cent higher at $3.07. It is followed by shares in Whitehaven Coal (ASX:WHC) and South32 (ASX:S32).

The worst-performing large cap is IGO (ASX:IGO), trading 5.65 per cent lower at $13.45. It is followed by shares in ResMed (ASX:RMD) and Brambles (ASX:BXB).

Asian news

Asia-Pacific markets are mixed as investors assess key economic data out of Japan and South Korea.

South Korea’s unemployment rate in August came in at 2%, its lowest since June 1999. Meanwhile, corporate confidence in Japan fell in September, among both manufacturers and non-manufacturers, according the Reuters Tankan poll.

Confidence among large manufacturers slid to +4, from +12 in August. The non-manufacturers index dropped nine points to hit +23 in September.

Japan’s Nikkei 225 extended gains after a three-day winning streak, opening up 0.23%, while the Topix also saw a similar gain of 0.26%.

South Korea’s Kospi inched up 0.14%, but the Kosdaq was down 0.67%. 

Futures for Hong Kong’s Hang Seng index stood at 18,156, pointing to a stronger open compared to the HSI’s close of 18,025.89.

Company news

Chimeric Therapeutics (ASX:CHM) announced the execution of a clinical study agreement with The University of Texas MD Anderson Cancer Center to support the “ADVENT-AML” Phase 1B study, for patients with newly diagnosed Acute Myeloid Leukaemia. In response, Jason B Litten, MD, Chief Medical Officer, stated, “By combining CHM 0201 with the current standard of care for AML patients we may be able to significantly enhance the outcomes for these patients.” 

Apollo Minerals (ASX:AON) announced bonanza gold grades up to at the Salane Gold Project. In response, Managing Director, Neil Inwood, commented: “It is impressive to see multiple rock chips over 100g/t Au in two separate vein systems 2.8km apart and high-grade gold rich veining visible at surface.” 

Caspin Resources (ASX:CPN) announced the highest grade REE mineralisation intersected to date at the Duchess Prospect, Mount Squires. In response, Caspin’s Chief Executive Officer, Mr Greg Miles, commented “The greatest attribute is the high proportions of heavy rare earths which are some of the most important critical minerals for future technologies and as a consequence, some of the most valuable.” 

Commodities and the dollar

Gold is trading at US$1934.70 an ounce.

Iron ore is 1.6 per cent higher at US$122.60 a tonne.

Iron ore futures are pointing to a 0.46 per cent rise.

One Australian dollar is buying 64.20 US cents.

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