The ASX200 has been up 0.32% at 7,874 points in early afternoon trade.
The US market stretched its winning streak to five straight sessions overnight as fresh inflation data reassured investors betting the Fed would start cutting rates next month.
On the back of this, traders are doubling down on bets that the local Reserve Bank will have to lower interest rates this year. Australian money markets say there’s a 26 per cent chance of an easing at the RBA’s next policy meeting on September 24.
Australia’s unemployment rate has also jumped from 4.1% to 4.2% in July, despite the economy adding 58,000 jobs. The participation rate has climbed to a record high of 67%. The result is broadly in line with the RBA’s expectations.
Telecommunication is the leading sector, up 1.64%, followed closely by Financials 1.1% and Discretionary 1%. The worst performing sector down around 4.2%, heavily influenced by the drag of Origin Energy.
Company News
Pilbara Minerals (ASX: PLS) has told the market it will acquire Latin Resources (ASX:LRS).
Pilbara Minerals secures Latin Resources’ flagship Salinas Lithium Project (Salinas) in Brazil, which has development flexibility to supply new markets.
Latin Resources shareholders benefit from an immediate premium and unlocking of Salinas’ value, but Citi analysts say the company is yet to convince shareholders on the deal.
Pilbara Minerals has been trading at $2.70 and Latin Resources at 18 cents.
Strike Energy (ASX:STX) has been down more than 1.3% after being granted a full production licence for its West Erregulla project. The company is now focused on de-risking the project.
Strike Energy has been trading at 18.3 cents.
Magellan (ASX:MFG) has been up more than 7 per cent after announcing its FY24 results and a strategic partnership with Vinva Investments. Statutory profit was up 31% year over year to $239 million, and the company declared a dividend of 35.7 cents per share.
Magellan has been trading at $10.38.