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ASX up 0.6% as commodity prices recover

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2023-11-14

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The S&P/ASX 200 has risen by 0.6 percent to reach 6991, driven by a recovery in commodity prices. Investors are eagerly awaiting crucial US inflation data to gain insight into whether interest rates have reached their peak in the world's largest economy.

Over on Wall Street, the market indices exhibited caution in anticipation of the consumer price index data. The S&P 500 concluded the session with a slight decrease of 0.1 percent, the Nasdaq Composite dipped by 0.2 percent, while the Dow Jones Industrial Average managed to inch up by 0.2 percent.

According to a Reuters poll of economists, it is anticipated that the headline US consumer price inflation will have eased to 3.3 percent in October from the previous month's 3.7 percent, with the core measure, which excludes volatile components, remaining unchanged.

Fed fund traders are suggesting an 87 percent probability that the Federal Reserve will maintain interest rates in December, with this probability increasing to 27 percent in January. They are currently pricing in the first rate cut for July next year.

The SPI futures are pointing to a rise of 60 points.

Best and worst performers

The best-performing sector is Energy, up 2.2 per cent. The worst-performing sector is Utilities, down 0.98 per cent.

The best-performing large cap is ALS (ASX:ALQ), trading 5.81 per cent higher at $11.30. It is followed by shares in IGO (ASX:IGO) and Suncorp Group (ASX:SUN).

The worst-performing large cap is National Australia Bank (ASX:NAB), trading 3.01 per cent lower at $28.03. It is followed by shares in Origin Energy (ASX:ORG) and Meridian Energy (ASX:MEZ).

Asian news

Asia-Pacific markets rose on Tuesday as investors look ahead to highly anticipated talks between the U.S. and China as well as more economic data.

U.S. President Joe Biden and China’s President Xi Jinping’s will meet in-person in San Francisco later in the day, for the first time in about a year.

Japan’s Nikkei 225 gained 0.70% at the open, while the Topix added 0.67%.

South Korea’s Kospi opened 1.21% higher. The Kosdaq added 1.44%, staging a comeback after falling for five straight sessions.

Futures for Hong Kong’s Hang Seng index stood at 17,659, pointing to a higher open compared with the HSI’s close of 17,426.21.

Company news

Altech Batteries (ASX: ATC and FRA: A3Y) announced that their Definitive Feasibility Study (DFS) has managed to expand the project's output by eightfold, increasing the capacity from 15 gigawatt-hours (GWh) to 120 GWh, with no change to plant and equipment. The plant will now focus on solely producing alumina-coated metallurgical silicon product at a rate of 8,000tpa. Shares are trading 8.33 per cent higher at 7.8 cents.

Si6 Metals (ASX:Si6) announced assay results from the first two holes drilled at the high-grade Cu-Ag Dibete Project in Botswana. In response, Managing Director, Jim Malone commented, “these results expand the high-grade Dibete Cu-Ag discovery and have confirmed the potentially economic tenor of Cu sulphides related to geophysical anomalies.” Shares are trading flat at 0.7 cents.

True North Copper (ASX:TNC) announced further phenomenal copper assay results from the Mt Oxide project in Queensland. Results continue to confirm the project hosts a large-scale, copper-cobalt-silver system with multiple, wide highgrade Cu-Co steeply dipping shoots and lenses. Shares are trading 6.67 per cent higher at 16 cents.

Commodities and the dollar

Gold is trading at US$1950.80 an ounce.

One Australian dollar is buying 63.79 US cents.

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