• ASX 200 extends winning streak
  • US bonds have sharply inverted, sparking concerns of a potential recession
  • China says it has found a new Omicron sub-variant

 

It was a sea of green today on the ASX, as local investors shrugged off a rapid sharp inversion in the US bond market.

The ASX closed 0.27% higher, extending its 1.32% gain last week. All sectors finished higher, except for Consumer Discretionary.

Metal miners got a boost after the spot iron ore price surged to an 8-month high of US$159.95 a tonne.

But there are jitters in the market over a potential repricing of equities, as the US treasury yield curve inverted sharply on Friday.

The US 2-year Treasury yield is now higher than the 10-year yield, (2.46% vs 2.38%), sparking concerns of a potential recession. An inverted curve has historically been a prelude to a recession.

Meanwhile, a new coronavirus subvariant has been found in China, causing jitters around the world.

On Sunday, China reported 13,000 Covid cases, the most since its pandemic peak two years ago.

Officials in Suzhou, a city close to Shanghai, said they have detected a mutation of the Omicron variant that hasn’t been recorded in local or international databases.

 

BIG CAP WINNERS

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Sayona Mining (ASX:SYA) surged 32% after telling investors that lithium from ‘Authier’ performed as well, if not better than the incumbent suppliers in battery test work.

Miners like Pilbara Minerals (ASX:PLS), IGO Ltd (ASX:IGO) and Fortescue (ASX:FMG) all rose by around 3%-5% on the back of rising metal prices.

Pendal Group (ASX:PDL) rose 18% after Perpetual (ASX:PPT) said it wants to buy 100% of its shares. PPT has offered Pendal shareholders 1 PPT share for every 7.5 Pendal shares, plus $1.67 cash for each Pendal share.

Telix Pharma (ASX:TLX) announced that it is part of the Australian Precision Medicine Enterprise (APME) Project which has been awarded $23 million in Federal Government grant funding.

The funding comes under the Modern Manufacturing Initiative (MMI), which is a key element of the Australian Government’s manufacturing strategy.

 

BIG CAP LOSERS

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Perpetual was down 6.5% after announcing a takeover offer for fellow ASX-listed asset manager, Pendal Group.