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ASX up 0.48% at noon as CPI grows by 4.9%

Australia’s Consumer Price Index (CPI) grew by 4.9 percent in annual terms in October, falling short of analysts’ consensus of 5.2 percent. This development is significant as it reflects ongoing inflation challenges in Australia, prompting the Reserve Bank of Australia to raise the cash rate to 4.35 percent in the previous month, with the next rate decision expected on December 5, likely to maintain the rate at 4.35 percent, as the October CPI report provides only a partial view of the inflation situation due to certain categories not being surveyed.

The S&P/ASX 200 is 0.48 per cent higher at 7,049.20.

The SPI futures are pointing to a rise of 16 points.

Best and worst performers

The best-performing sector is Information Technology, up 1.62 per cent. The sector with the fewest gains is Utilities, up 0.03 per cent.

The best-performing large cap is Fisher & Paykel Healthcare Corporation (ASX:FPH), trading 7.53 per cent higher at $22.13. It is followed by shares in Newmont Corporation (ASX:NEM) and IDP Education (ASX:IEL).

The worst-performing large cap is Meridian Energy (ASX:MEZ), trading 3.23 per cent lower at $4.80. It is followed by shares in Mercury NZ (ASX:MCY) and Pilbara Minerals (ASX:PLS).

Asian news

Asia-Pacific markets were set to open lower as investors assess comments from the U.S. Federal Reserve board members and await Australia’s October inflation figures.

Japan’s Nikkei 225 slid 0.29% in early trade, while the Topix saw a smaller loss of 0.14%.

South Korea’s Kospi lost 0.23% after hitting a two month high on Tuesday, and the small-cap Kosdaq inched down marginally.

Futures for Hong Kong’s Hang Seng index stood at 17,327, also pointing to a weaker open compared with the HSI’s close of 17,354.14.

Company news

Euro Manganese (TSX-V and ASX:EMN; OTCQX:EUMNF; Frankfurt:E06) announce that it has signed definitive agreements with Orion Resources Partners for US$100 million in non-dilutive financing to advance the development of the Chvaletice Manganese Project in the Czech Republic. In response, Dr. Matthew James, President & CEO of Euro Manganese, commented, “This is a transformative transaction for Euro Manganese, providing a Funding Package that facilitates the best possible pathway to a final investment decision and representing a collaboration between Euro Manganese, Orion, and Stifel.” Shares are trading 55 per cent higher at 15.5 cents.

Elementos (ASX: ELT) has reported a maiden Zinc Mineral Resource Estimate (MRE) at its Oropesa Tin Project in Spain. Elementos Managing Director Joe David said, “whilst tin remains the primary mineral of interest at Oropesa it is now confirmed that zinc will also be in consideration as a by-product stream for the company, delivering a more financially robust project with stronger environmental and mining benefits.” Shares are trading 5.26 per cent higher at 10 cents. 

White Cliff Minerals (ASX:WCN) has confirmed that their 100% owned Lake Johnston South Lithium project in WA is highly prospective for spodumene bearing pegmatites. Commenting on the exploration results, White Cliff Chairman Roderick McIllree said: “Given the several large discoveries by the adjacent TG Metals (TG6.ASX), and Rio Tinto Exploration and Charger Metals (CHR.ASX) commercially significant transactions, we have enormous confidence in the potential value of the Project.” Shares are trading 9.09 per cent higher at 1.2 cents.

Commodities and the dollar

Gold is trading at US$1782.70 an ounce.

Iron ore is 3 per cent lower at US$129.45 a tonne.

Iron ore futures are pointing to a 0.6 per cent fall.

One Australian dollar is buying 66.42 US cents.

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