Closing Bell
What's Affecting Markets Today
Oil Prices Surge in 2023 Oil prices reached their peak for the year, with Brent crude settling at $US93.70 and WTI at $US90.16. Factors include Saudi Arabia and Russia’s extended oil output cuts and a bearish US inventories report. OPEC also forecasted a 2023 supply deficit if production cuts persist. China’s central bank’s decision to reduce bank reserve requirements, aimed at supporting economic recovery, further influenced the oil market due to China’s significant role as an oil consumer.
Singapore Iron Ore Reaches 6-Month High Iron ore futures experienced a rise for the fourth consecutive session, influenced by low stock levels and pre-holiday restocking. The January iron ore on China’s DCE increased by 0.8% to 863.5 yuan per metric ton. However, concerns about the steel market’s potential weakness during peak construction season remain.
China’s Central Bank Focuses on Liquidity The People’s Bank of China (PBOC) maintained the interest rate on its medium-term policy loans, emphasizing the importance of liquidity. This decision follows the PBOC’s recent move to decrease the cash reserve requirements for banks, aiming to aid economic recovery.
Positive Indicators for China’s Economy China’s industrial output has shown an upward trend, suggesting that recent support measures might be stabilizing the economy. Retail sales grew by 4.6% in August, marking the fastest growth since May. Despite these positive signs, challenges like the struggling property sector and rising Sino-US tensions could hinder a robust economic recovery.
ASX Stocks
ASX 200 - 7186.5 32.6 (0.46%)
Key Highlights:
The ASX experienced a significant 1.6% rise on Friday, marking its largest surge in 10 months. This uptick was influenced by positive US economic data, which instilled optimism and positively impacted Wall Street. Every sector on the ASX saw gains, with mining companies, including BHP, Rio Tinto, and Fortescue, leading the charge with over 3% increases. Major banks also reported gains.
Despite facing challenges from the competition regulator ACCC, Qantas shares went up by 1.1%. The ACCC had rejected Qantas’ proposed partnership with China Eastern Airlines over concerns of potential price hikes. Ramsay Health Care’s shares slightly increased by 0.5%, even after Fitch Ratings downgraded its credit status due to high debt. Metcash reported a modest sales growth of 1.7%, while gold mining company Ramelius Resources saw a 4.2% jump after positive findings from its Penny mine. Alliance Aviation Services enjoyed a 2.6% rise after securing a contract extension with BHP Iron Ore. Lastly, Telstra’s shares increased by 0.6%, despite an ACCC report indicating a decrease in its market share.
Leader
NVX – Novonix Ltd (32.12%)
ZIP – ZIP Co Ltd (12.5%)
SYR – Syrah Resources Ltd (10.91%)
AKP – Audio Pixels Holdings Ltd (10.62%)
LFG – Liberty Financial Group (10.26%)
Laggards
GRX – Greenx Metals Ltd (-5.29%)
AGI – Ainsworth Game Technology Ltd (-5.24%)
REP – Ram Essential Services Property Fund (-4.83%)
CVW – Clearview Wealth Ltd (-4.76%)
A11 – Atlantic Lithium Ltd (-4.04%)
Calendar
Economic
