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ASX today – Australian shares are now heading for a strong +1% advance at open this morning, which would pare most of the losses pulled out of the local Aussie bourse through Monday’s sell-down – and whether that continues to close hinges on the big question: Is the RBA’s impending hike priced in?
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Many would argue yes: We’ve had selling through last Friday and then again yesterday already, all under the idea that a ‘hike’ is all but locked in.
Everything will be revealed at 2pm today (Sydney time), of course, but there’s going to be some half a day of theorycrafting before then, I’m sure – though even the most dovish analysts are now calling ‘hike’ today.
Further afield, Trump has launched a US$12B minerals stockpile to “boost U.S. manufacturing [and] counter China,” which has already helped rare earth pricings. Most critmins had crashed over the weekend after a (much-revised) Reuters article suggested the U.S. was dumping price floor plans.
That should go some way to buoy the heavily battered ASX-listed metals and resources companies, who’ve had a tough few retreating days.
ASX stocks to watch
The most obvious first winner from Trump’s grand $12B plan would be Lynas Rare Earths (ASX:LYC), the world’s largest rare earths producer outside China, which immediately dumped some -10% after the Reuters report.
Others that may get a boost from the U.S. stockpile strategy include developer Arafura (ASX:ARU) and explorers St George (ASX:SGQ) and Lindian (ASX:LIN). So too Iluka Resources (ASX:ILU), which has been diversifying beyond its core mineral sands plans to add rare earths projects in CY25 and beyond.
Conversely, with gold still tracking down, any companies exposed to the precious metal (or with their prop built on it) may have a tough Tuesday. Newmont (ASX:NEM) and Northern Star (ASX:NST) already lost -10% yesterday.
Now, under all that, this next one’s fairly excellent timing: Explorer Everest Metals (ASX:EMC) has uncovered high-grade rubidium at its Mt Edon critmins project in Western Australia. Assays peaked at 0.67% Rb₂O.
Elsewhere, SQX Resources (ASX:SQX) has started maiden gold drilling at Red Bird, while Premier1 Lithium (ASX:PLC) is doing similar at Mt Kersey.
And, Vection (ASX:VR1) has hooked in another $2.2M European defence order.
Buck and ore
Now – in forex, the Aussie dollar is buying US 69.5c.
Looking at commodities, all in the greenback,
Iron Ore is down another -1%, to sell at $102.80 a tonne in Singapore today,
Brent Crude‘s down -4.4%, to $66.28/Bbl,
Gold keeps sliding, to $4,748/ounce,
US natgas futures plunged -24.9%, to $3.27 per gigajoule.
That’s HotCopper’s Market Open, I’m Isaac McIntyre – happy trading.
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