• The ASX gains another 1.7% on Wednesday
  • All 11 sectors rose excepts Consumer Discretionary
  • RBNZ raised cash rate by another 50bp

 

After the 3% surge yesterday, Aussie shares lifted another 1.7% on Wednesday as risk appetite makes its way back to the markets.

Shares rallied as weak labour and manufacturing data int he US over the last two days have lessened the risk of more outsized rate hikes by the Fed.

The RBA’s surprise decision yesterday to hike by just 25bp has also set the tone, and now a lot of traders on Wall Street are expecting the Fed to also soften their tightening pace.

The Reserve Bank of New Zealand meanwhile still sees an urgent need to contain inflation, raising the Kiwi cash rate by 50bp today.

In a statement, the RBNZ said:

“Committee members agreed that monetary conditions needed to continue to tighten until they are confident there is sufficient restraint on spending to bring inflation back within its 1-3 percent per annum target range.”

The NZ$ rose against the Aussie$ right after the RBNZ announcement.

The Federal Chamber of Automotive Industries (FCAI) has today released new vehicle sales figures in Australia for September.

A total of 93,555 vehicles were sold in September, bringing the year-to-date total to 811,130. This represents a 12.3% on the pcp.

During September, 7,247 battery electric vehicles (EVs) were sold, more than hybrid and plug-in-hybrid combined (5,141).

Year to date, 21,771 battery EVs have been sold.

“While the overall market share of battery electric vehicles remains low at 2.7 per cent, there is a clear market trend towards zero emission technology,” said FCAI Chief Executive, Tony Weber.

Elsewhere, oil prices also spiked 3% overnight after reports that OPEC+ is now considering slashing output by as much as 2 million bpd, compared to the 1 million bpd reported earlier.

Cryptos rose across the board in the last 24 hours as Elon Musk revived his Twitter bid.

Bitcoin is now trading back above US$20k at US$20,172 while Musk’s favourite crypto Dogecoin is trading at US6.5c.

Fast food chain McDonald’s started to accept Bitcoin as a payment method in the Swiss city of Lugano, which has now become a hub for crypto adoption in Europe.

Back to the ASX, all sectors closed higher on Wednesday except for Consumer Staples which was down half a percent. Tech and Consumer Discretionary stocks caught a bid.

Looking ahead tonight, the US August trade balance will be released, along with the US S&P Global services PMI data. The EU will also releasing their S&P Global services PMI.

 

BIG CAP WINNERS

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Fortescue Metals (ASX:FMG) was up 2% after revealing that it wants to become involved with importing green hydrogen into Europe.

Fortescue’s FFI fund will invest $127m to enter a collaboration with energy infrastructure developer Tree Energy Solutions to develop a “world-leading” green hydrogen and green energy import facility in Germany.

Telix Pharma (ASX:TLX) jumped 11% and REA Group (ASX:REA) jumped 7%, both on no news.

 

BIG CAP LOSERS

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Sayona Mining (ASX:SYA) was down 4% after announcing the launch of a pre‐feasibility study (PFS) for the Moblan Lithium Project, targeting development of lithium mine and concentrator in northern Québec.

Near term gold mine developer DeGrey Mining (ASX:DEG) is on a trading halt as it raises $150m via a placement ($130m) and share price placement ($20m). At $1 per share, it’s a respectable 8.3% discount to the last closing share price and a 3.3% discount to the 5-day VWAP.

Core Lithium (ASX:CXO) fell 2% after high-grade spodumene bearing pegmatite was confirmed in multiple holes at BP33, up to 830m below surface. Lithium intersections include: o 72.74m @ 1.56% Li2O.

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