- ASX 200 seesaws to close flat
- Aussie 10-year bond yields at 7-year high
- China’s inflation rises and beats expectations
The ASX 200 opened higher this morning but lost momentum by midday as Aussie bond yields marched to multi-year highs.
At the close of day, the ASX 200 benchmark closed flat while the 10-year bond yield surged past 3%, its highest level since 2015.
It follows a similar spike in US Treasury yields on Friday, where the 10-year yield rose to a three-year high of 2.70%.
Bond yields have been moving higher since the US Fed signalled last week it would aggressively hike rates and reduce its massive bond holdings at $US95 billion a month starting in May.
Australia’s Reserve Bank has also opened the door for a potential rate hike by as early as June, raising concerns of a real estate bubble bust.
By sector, rates sensitive stocks like Tech and Discretionary were the worst performers today, down by around 1% each, while Financials led the market.
Meanwhile, China’s producers’ costs surged 8.3% and consumer inflation climbed 1.5% year on year. Some analysts have warnted that persistently high inflation and lockdowns could shave 2% of China’s GDP.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| ZIM | Zimplats Holding Ltd | 33.93 | 9.9% | 23,349 | $3,322,774,225 |
| CXL | Calix Limited | 8.62 | 9.0% | 783,915 | $1,277,004,891 |
| LKE | Lake Resources | 2.00 | 7.5% | 30,124,293 | $2,376,229,013 |
| GNC | GrainCorp Limited | 9.77 | 6.3% | 4,208,000 | $2,103,183,221 |
| APM | APM Human Services | 3.37 | 6.3% | 1,191,154 | $2,907,466,769 |
| GRR | Grange Resources | 1.285 | 6.2% | 6,457,325 | $1,400,379,825 |
| WSA | Western Areas Ltd | 3.845 | 5.3% | 3,815,290 | $1,173,997,516 |
| PRU | Perseus Mining Ltd | 1.86 | 4.2% | 8,210,630 | $2,202,812,178 |
| NST | Northern Star | 10.65 | 3.7% | 2,975,844 | $11,965,846,300 |
| IRE | IRESS Limited | 11.63 | 3.5% | 285,488 | $2,131,422,721 |
| RRL | Regis Resources | 2.11 | 3.4% | 4,777,963 | $1,539,743,648 |
| PSI | Psc Insurance Ltd | 4.44 | 3.0% | 30,158 | $1,503,996,102 |
| NUF | Nufarm Limited | 6.59 | 3.0% | 1,851,004 | $2,432,122,598 |
| SLR | Silver Lake Resource | 2.1 | 2.9% | 1,529,583 | $1,897,544,660 |
Lake Resources (ASX:LKE) and Ford Motor Company have signed a non-binding MoU to negotiate a lithium offtake from the Kachi Project. The offtake deal is approximately 25,000 tonnes per annum to support Ford’s aggressive electric vehicles acceleration.
IGO Ltd (ASX:IGO) agreed to lift its acquisition price of ASX-listed Western Areas (ASX:WSA) to $3.87. The upgrade follows an independent report saying that the initial $3.36 offer was not in the best interest of WSA shareholders, considering the continued strong nickel price performance.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| AVZ | AVZ Minerals Ltd | 1.055 | -5.8% | 28,187,044 | $3,952,177,318 |
| YAL | Yancoal Aust Ltd | 4.87 | -5.8% | 794,486 | $6,826,671,889 |
| ERA | Energy Resources | 0.37 | -5.1% | 352,159 | $1,439,639,447 |
| ASM | Ausstratmaterials | 7.41 | -5.1% | 561,669 | $1,089,541,907 |
| A2M | The A2 Milk Company | 4.79 | -5.0% | 7,590,989 | $3,748,028,901 |
| VUL | Vulcan Energy | 9.05 | -4.3% | 880,481 | $1,245,362,551 |
| EBO | Ebos Group Ltd | 37.45 | -4.2% | 23,696 | $7,377,460,374 |
| BRN | Brainchip Ltd | 0.91 | -4.2% | 7,945,079 | $1,628,644,037 |
| HTA | Hutchison | 0.082 | -3.5% | 2,000 | $1,153,663,229 |
| MIN | Mineral Resources. | 59.14 | -3.5% | 930,357 | $11,576,517,934 |
| PLS | Pilbara Min Ltd | 3.09 | -3.4% | 16,909,975 | $9,525,869,418 |
| MP1 | Megaport Limited | 12.48 | -3.3% | 435,254 | $2,039,121,797 |
Adore Beauty (ASX:ABY) fell 10% to its all time low today on concerns that higher mortgage rates could force people to buy less beauty products. The ABY stock price has lost more than 70% over the past 12 months.
At Stockhead we tell it like it is. While Lake Resources is a Stockhead advertiser, it did not sponsor this article.