ASX Market Update: ASX Rises on Iron Ore Gains and ABS Economic Data | 3 July 2024

The ASX200 was up a quarter of a percent at lunchtime with materials in the lead, up just over 1%. 

Its gains were partially driven by iron ore prices climbing back to US$110.40 in Singapore; around a three-week high. 

Recent Chinese stimulus measures, and growth in some areas of manufacturing, were partly responsible for the shift in sentiment where iron ore is concerned.

Australia’s Retail Trade and Inflation Data

Australia’s latest retail trade data from the ABS shows Australian consumers boosted spending by 0.6% in May 2024.

The ABS attributed the jump in sales to consumers chasing ‘bargains,’ which was notably hotter than the 0.1% growth in April.

The data comes weeks after Australian inflation came in hotter than expected at 4% in the June data, while core inflation only slowed 0.1%.

Dwellings Approvals

Dwellings approvals in the country increased by 5.5% in May after a 1.9% jump in April.

The lion’s share of the increase was driven by private sector dwellings excluding houses, which climbed 16.3% month-on-month.

However, private sector house approvals only increased by 2.1%.

Company News

Chalice Mining (ASX:CHN) has announced its execution of an MOU with Mitsubishi Corporation to develop the closely-watched Gonneville project in WA.

The memorandum, which is non-binding, will see Chalice and Mitsubishi working together through an ongoing Pre-Feasibility Study (PFS) process with the intention of forming a potential strategic partnership.

However, the MOU is non-exclusive and allows Chalice to keep window shopping for partners.

CHN has been trading at $1.35.

Sun Silver (ASX:SS1) is up nearly 8% after the company announced this morning that the plan for its inaugural drill campaign at its Maverick Springs Project in Nevada, US has been finalised.

The campaign will initially consist of 7,500m of RC drilling and will include a mix of both in-fill and extensional drill targets.

Drilling is set to commence on 8 July 2024.

SS1 has been trading at 56 cents.

Mining giant Rio Tinto (ASX:RIO) has increased its shareholding in Sovereign Metals (ASX:SVM) by 19.7%, reflecting its interest in supporting the Soverigns, Kasiya Rutile-Graphite Project in Malawi.

The funds will be used by Sovereign to advance the project.

Both companies are up just short of a percent on the news.

RIO has been trading at $120.38.

SVM has been trading at 66.5 cents.