Market marks time ahead of rates call

Ahead of what is expected to be another 25-basis-point interest rate rise announced today, it was a reasonably positive tone from the Australian share market on Monday.

The benchmark S&P/ASX200 index gained 45 points, or 0.6 per cent, to 7,328.6, while the broader All Ordinaries was up 41.7 points, also 0.6 per cent, to 7,525.7.

China’s lower-than-expected economic growth target of 5 per cent announced over the weekend appeared to dampen sentiment for the commodity producers. Rio Tinto fell $1.06, or 0.8 per cent, to $125.37 and Fortescue Metals retreated 56 cents, or 2.5 per cent, to $22.20, while BHP crept to a 7-cent gain, at $48.39.

Among the energy leaders, Woodside Energy lost 58 cents, or 1.5 per cent, to $37.21; Santos was down 6 cents, or 0.8 per cent, to $7.14; and Beach Energy slipped 2 cents, or 1.4 per cent, to $1.44.

Core lights up lithium

In lithium, Allkem slid 9 cents, or 0.7 per cent, to $12.27, while fellow producer Pilbara Minerals fell 8 cents, or 1.9 per cent, to $4.10. Mineral Resources, which mines iron ore as well as lithium, dropped 31 cents, or 0.3 per cent, to $89.11, with IGO, which produces nickel and lithium, easing 7 cents, or 0.5 per cent, to $13.80. Among the lithium project developers, Core Lithium spiked 6 cents, or 6.2 per cent, to $1.02, after more than doubling the size of the mineral resource for the BP33 deposit within its Finniss lithium project in the Northern Territory. BP33 is the second proposed mine at Finniss awaiting development approval. Lake Resources added 4 cents, or 6.6 per cent, to 64 cents; Liontown Resources advanced 9 cents, or 5.5 per cent, to $1.72; and Piedmont Lithium rose 3 cents, or 3.2 per cent, to 96 cents.

In coal, Whitehaven Coal retreated 16 cents, or 2.1 per cent, to $7.33; New Hope Corporation also lost 16 cents, in its case 2.8 per cent, to $5.61; Coronado Global Resources ended 4 cents, or 2.1 per cent, weaker at $1.90; Yancoal Australia eased 6 cents, or 1 per cent, to $6.14; and Stanmore Resources gave up 16 cents, or 4.3 per cent, to $3.52.

It was a solid day for the big banks, with Westpac advancing 36 cents, or 1.7 per cent, to $22.09; ANZ gaining 35 cents, or 1.5 per cent, to $24.20; Commonwealth Bank rising 85 cents, or 0.9 per cent, to $98.60; and National Australia Bank adding 33 cents, or 1.1 per cent, to $29.48

Investment bank Macquarie Group put on $4.52, or 2.4 per cent, to $189.99. Elsewhere on the industrial screens, CSL gained $1.48, or 0.5 per cent, to $294.50, and Telstra eased 1 cent, to $4.08.

Dow rises for fourth straight day

 In the US, the blue-chip Dow Jones Industrial Average and the broader S&P 500 index both rose as investors braced for a busy week of economic news, but the tech-heavy Nasdaq Composite Index eased slightly. The Dow Jones gained 40.47 points, or 0.1 per cent, to end the session at 33,431.44; the S&P 500 added 2.8 points, to 4,048.42, while the Nasdaq Composite retraced 13.3 points, or 0.1 per cent, to close at 11,675.74.

Bond yields rose slightly, with the yield on the 10-year Treasury note closing at 3.962 per cent and the more rate-sensitive 2-year yield increasing to 4.89 per cent.

European markets were mixed, with the German DAX’s 0.5 per cent gain and London’s 0.4 per cent rise outdoing a slightly down close for the Euro STOXX 600.

On the commodities front, gold retreated US$2.10, or 0.1 per cent, to US$1,853.00 an ounce, while the global benchmark Brent crude oil grade gained 44 cents, or 0.5 per cent, to US$86.27 a barrel and West Texas Intermediate oil was up 87 cents, or 1.1 per cent, to US$80.55.

The Australian dollar is buying 67.3 US cents this morning, down from 67.56 US cents at the local close on Monday.

James Dunn

James is an experienced senior journalist and host of The Inside Network's industry events.