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Latest US inflation report lifts ASX 1.4% at noon

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2023-11-15

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Australian shares experienced early gains driven by the latest US inflation report, fueling speculation that interest rates may have peaked. At noon, the S&P/ASX 200 surged 1.44% to 7107.3 points, and the All Ordinaries climbed 1.5%. Additionally, record-high wage growth of 1.3% in the third quarter, mainly due to planned raises for aged-care workers, contributed to the positive market sentiment.

The SPI futures are pointing to a rise of 100 points.

Best and worst performers

The best-performing sector is REITs, up 3.94 per cent. The worst-performing sector is Energy, down 0.29 per cent.

The best-performing large cap is Allkem (ASX:AKE), trading 7.25 per cent higher at $9.245. It is followed by shares in Pilbara Minerals (ASX:PLS) and Mineral Resources (ASX:MIN).

The worst-performing large cap is Computershare (ASX:CPU), trading 4.64 per cent lower at $23.63. It is followed by shares in QBE Insurance Group (ASX:QBE) and Aristocrat Leisure (ASX:ALL).

Asian news

Asia-Pacific markets jumped Wednesday, taking cues from Wall Street after a soft U.S. inflation reading boosted hopes of the Federal Reserve nearing the end of its interest rate-hiking cycle.

U.S. CPI was flat in October, against economists expectations of 0.1% rise month over month.

Data on Wednesday showed Japan’s economy shrank during the third quarter for the first time in four quarters, amid slowing global demand and rising domestic inflation. Japan’s provisional gross domestic product fell 2.1% in the third quarter compared to a year ago, against a Reuters poll estimate of a 0.6% decline.

Investors will also monitor data from China expected later Wednesday.

On the geopolitical front, U.S. President Joe Biden and China’s President Xi Jinping are expected to meet in person in San Francisco for the first time in about a year.

Japan’s Nikkei 225 rose 1.58% at open, while the Topix added 1.24%.

South Korea’s Kospi gained 1.83%, and the Kosdaq led gains with a 2.15% rise at open.

Futures for Hong Kong’s Hang Seng index stood at 17,935, pointing to a much stronger open compared to the HSI’s close of 17,396.86.

Company news

Atlantic Lithium (AIM:ALL, ASX:A11, OTCQX ALLIF) has rejected a non-binding indicative offer from Assore International Holdings to acquire the rest of the shares it does not already own for A$0.63. In response, Neil Herbert, Executive Chairman of Atlantic Lithium, said, “Assore, a major African mining company, has been a leading investor and key contributor to the Company’s success since its listing in London in 2015. We look forward to maintaining our strong relationship with Assore as we progress Ewoyaa towards production.” Neil Herbert Atlantic Lithium Executive Chairman is on this Fridays webinar as mentioned you can register via the SC or FNN website. Shares are trading 27.3 per cent higher at 49 cents.

Findi (ASX:FND) has raised $37.6 million ahead of its TSI India IPO, from leading Indian investment firm Piramal Alternatives. The funds will be allocated with respect to working capital and capital expenditure. Commenting on the news, Findi Chairman Mr Nicholas Smedley said, “Piramal undertook extensive due diligence on TSI India before they made their investment which is a great endorsement for both our business plan and the sector outlook for Findi as a whole.” Shares are trading 38.4 per cent higher at $1.10.

Odessa Minerals (ASX:ODE) announced that their assay results have defined standout drilling targets for Lithium in Pegmatites its Yinnetharra Lithium Project. In response, David Lenigas, Executive Director of Odessa, said, “Odessa’s exploration team have processed thousands of rock chip and soil samples from Lockier Range over the past 6 months and the results have now defined some exceptional lithium rich areas that will be targeted with our maiden drilling programme.” Shares are trading 43.8 per cent higher at 1.15 cents.

Jindalee Resources (ASX:JRL) announced exceptional metallurgical lithium results from its 100% owned, McDermitt Lithium Project located in Oregon, USA. The lithium grade will now increase 57% higher than the average Mineral Resource grade. Shares are trading 9 per cent higher $1.09.

Commodities and the dollar

Gold is trading at US$1965.70 an ounce.

Iron ore is 0.3 per cent higher at US$130.20 a tonne.

Iron ore futures are pointing to a 3.11 per cent rise.

One Australian dollar is buying 65.07 US cents.

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