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ASX up at 0.53% at noon: Investors anticipating upcoming Fed meeting

PUBLISHED

2023-09-19

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Investors are feeling nervous in anticipation of the upcoming US Federal Reserve policy meeting, where it is anticipated that the Fed will reiterate its commitment to maintaining low interest rates for an extended period. Adding to this unease is the revelation from the Reserve Bank's September meeting minutes that it had contemplated raising interest rates. Although the Reserve Bank kept the cash rate at 4.1 percent in line with expectations, it indicated a readiness to increase rates if inflation persisted. This combination of factors has contributed to a sense of uncertainty in the financial markets.

Overall, at noon, the S&P/ASX 200 is 0.53 per cent lower at 7,192.00.

The SPI futures are pointing to a fall of 40 points.

Best and worst performers

The best-performing sector is Energy, up 0.57 per cent. The worst-performing sector is REITs, down 0.99 per cent.

The best-performing large cap is New Hope Corporation (ASX:NHC), trading 3.73 per cent higher at $6.40. It is followed by shares in BlueScope Steel (ASX:BSL) and Evolution Mining (ASX:EVN).

The worst-performing large cap is Computershare (ASX:CPU), trading 2.31 per cent lower at $25.41. It is followed by shares in Harvey Norman Holdings (ASX:HVN) and Meridian Energy (ASX:MEZ).

Asian news

Asia-Pacific markets fell across the board as traders look to minutes from the Reserve Bank of Australia for its policy meeting on Sept. 5.

The minutes will detail how the RBA came to hold its benchmark policy rate at 4.1%, the third straight month that it has done so.

Both South Korea’s Kospi and Kosdaq were down 0.22% and 0.53% respectively.

Japan’s Nikkei 225 slumped 0.94% upon its return from a public holiday, while the Topix saw a smaller loss of 0.26%.

In contrast, futures for Hong Kong’s Hang Seng index stood at 17,965, pointing to a positive open compared with the HSI’s last close of 17,930.55.

Company news

BluGlass (ASX:BLG) has received a custom laser order from a repeat customer. The customer is a leading USA-based research laboratory, who will use BluGlass’ lasers within high-powered scientific applications. In response, BluGlass CEO Jim Haden said, “We are very encouraged to receive this order from an existing laser project customer, as we develop our track-record and progress to larger volume and recurring orders.” Shares are trading flat at 4.2 cents.

Codrus Minerals (ASX:CDR) has announced that widespread clay-hosted REE mineralisation has been intersected in the Company’s first AC drill program at their Karloning REE Project in WA. In response, Managing Director, Shannan Bamforth, said, “The assays have confirmed what we wanted to see – that the shallow mineralization has both scale and grade, substantially upgrading the potential of the Karloning Project.” Shares are trading 37.14 per cent higher at 9.6 cents.

Kula Gold (ASX:KGD) announced that the first hole at the Mustang Lithium Prospect, within the Kirup Lithium Project has been successful in intersecting pegmatites over four intervals. In response, Chief Executive Officer Ric Dawson commented, “the combination of some very encouraging outcrop, geochemistry and geophysics warrants subsurface drilling.” Shares are trading 14.29 per cent higher at 1.5 cents.

Commodities and the dollar

Gold is trading at US$1953.90 an ounce.

Iron ore is 0.9 per cent lower at US$124.45 a tonne.

Iron ore futures are pointing to a 0.1 per cent fall.

One Australian dollar is buying 64.32 US cents.

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