ASX Large Caps: Aussie stocks rally as RBA signals 2023 rate hike

Local shares were up 1.17% today as investors digested live comments from RBA’s governor Dr. Philip Lowe, who was speaking at the National Press Club.

Australia’s central bank boss hinted that he might start raising rates in 2023, consistent with a growth in wages that’s expected to hit 3% next year.

Asked by journos if a rate hike in 2022 is possible, Dr Lowe said it’s possible but unlikely.

“We’ll be looking for further evidence that labour costs are growing at a rate consistent with inflation being sustained within the target range,” Dr Lowe said.

“We expect this evidence to emerge over time, but it is unlikely to do so quickly.”

All sectors except Utilities rose following the speech, with Energy and Mining leading the pack and rising by 2.7% and 1.6% respectively.

The  benchmark ASX 200 meanwhile is down by almost 7% year to date, and has followed the moves in US where the S&P 500 had its worst ever start to the year since the 2009 global crisis.

The Aussie dollar kept its ground throughout the RBA speech and firmly anchored on the 71c handle, trading currently at US$0.7130.

 

BIG CAP WINNERS

Swipe or scroll to reveal the full table. Click headings to sort

WordPress Table.

Market darling Brainchip (ASX:BRN) was once again in the winners’ circle, after being granted another US patent for its artificial intelligence microchips. BrainChip’s patent portfolio now comprises eight US and one Chinese granted patents.

The BRN stock price has surged by 125% this year amid the patent announcements.

Genworth Mortgage Insurance (ASX:GMA) was up 5% after the company announced a continuation of the insurance claims environment in Q4 similar to that experienced in Q3, leading to favourable net claims incurred.

This included high growth in dwelling prices, falling delinquencies, low numbers of mortgages in possession, and low numbers of paid claims.

Genworth however confirmed that unaudited total investment income was a loss of $10.6 million for the full year of FY21, including a loss of $11.6 million in the second half.

BIG CAP LOSERS

Swipe or scroll to reveal the full table. Click headings to sort.

WordPress Table

Related Topics