ASX Large Caps: Shares up 1pc as lithium stocks lead the way; inflation hits 32-year high

ASX 200 gained 1% on Wednesday
Australian CPI came in at 7.3%, up from 6.9%
Lithium miners led the proceedings today

The ASX 200 surged by around 1% on Wednesday despite higher than expected CPI figures.

The ABS said that Australia’s inflation rose again in November by 7.3% (year on year) to a 32-year high, up from October’s rise of 6.9%.

The prices of food and non-alcoholic beverages jumped 9%, while fruit and vegetables and travel costs softened. Transportation costs meanwhile rose 16.6% in November from 11.85% in October.

The larger than expected inflation figure (vs forecast of 7%) and strong retail sales (up 1.4%) has dashed hopes the RBA could soften its rate hike stance.

After the data release, money market futures jumped as traders firmed up 25bp RBA hike bets for February.

The US will also publish its CPI data on Thursday (US time).

In November, the US CPI was cooler than expected at 7.1% (expectation was 7.3%), a sign that inflation was moderating from its highest level in decades.

JPMorgan Asset Management’s chief global strategist, David Kelly, says US inflation will continue to fall in 2023.

“News outlets and social media feeds will continue to try to draw an audience by raising the alarm on a wide range of issues,” Kelly said.

“No one will cover any improvement in the economy, any lessening of global tensions or any resolution of the issues that plagued markets in 2022.

“For this reason, investors should resolve to examine the environment for themselves and invest while prices are more reflective of the state of public attitudes than the reality of economic prospects,” he added.

Back to the ASX, Mining and Real Estate were the main gainers today, while Utilities lagged.

Lithium miners led the way with Allkem (ASX:AKE) gaining 6% and Pilbara Minerals (ASX:PLS) by 3.5%.

Gold stocks continued their recent ascent, with De Grey Mining (ASX:DEG) leading the way, up 3.5%.

BIG CAP WINNERS

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Security	Description	Last	%	Volume	MktCap
29M	29Metalslimited	2.28	6.31	1,266,181	$1,030,102,052
AKE	Allkem Limited	12.50	5.40	2,550,741	$7,562,624,900
IGO	IGO Limited	14.63	5.18	2,566,972	$10,533,595,279
ARU	Arafura Rare Earths	0.53	5.00	8,695,685	$1,020,354,724
LTR	Liontown Resources	1.50	4.55	5,962,921	$3,140,902,551
SYR	Syrah Resources	2.19	4.29	1,923,444	$1,408,198,491
BSL	BlueScope Steel Ltd	18.45	4.27	968,178	$8,207,998,207
PNI	Pinnacle Investment	10.19	4.09	253,869	$1,970,375,108
LOV	Lovisa Holdings Ltd	25.18	4.01	110,658	$2,610,609,403
SLR	Silver Lake Resource	1.46	3.91	3,853,399	$1,306,290,788
MIN	Mineral Resources.	87.97	3.80	360,734	$16,083,880,425
DEG	De Grey Mining	1.51	3.79	3,430,345	$2,263,692,027
RWC	Reliance Worldwide	3.33	3.74	3,345,541	$2,536,204,196

29Metals (ASX:29M) rose 6% on the back of bullish sentiment on metals.

BIG CAP LOSERS

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Security	Description	Last	%	Volume	MktCap
MEZ	Meridian Energy	4.81	-3.80	41,345	$6,317,572,185
XRO	Xero Ltd	69	-3.69	739,778	$10,758,939,617
PNV	Polynovo Limited	2.43	-2.80	2,952,256	$1,720,009,508
KAR	Karoon Energy Ltd	2.1	-2.78	828,608	$1,215,396,049
CMM	Capricorn Metals	4.975	-2.45	686,483	$1,910,884,193
WHC	Whitehaven Coal	8.87	-2.21	6,892,142	$8,181,115,157
EBO	Ebos Group Ltd	42.04	-2.14	10,437	$8,189,799,673
PSI	Psc Insurance Ltd	5	-1.96	817	$1,806,127,291
CRN	Coronado Global Res	2.02	-1.46	3,073,902	$3,436,730,147
NUF	Nufarm Limited	6.06	-1.46	3,275,548	$2,339,567,643
SPK	Spark New Zealand	4.81	-1.43	394,749	$9,141,040,393
LFG	Liberty Fin Group	3.85	-1.28	16,584	$1,184,040,000
PXA	Pexagroup	12.17	-1.22	891,501	$2,184,653,708
SUN	Suncorp Group Ltd	11.69	-1.10	2,413,854	$14,941,373,557