There was some big news to wake up to this morning.
The Bank of England (BoE) left its key interest rate unchanged for the first time late 2021. The rate currently sits at 5.25% and the lack of movement signals that inflation is cooling and the UK economy is teetering on the brink of contraction.
Rupert Murdoch lifted News Corp shares after he announced he is stepping down as chairman of his companies at the age of 92.
Eldest son Lachlan, 52, will take over as the sole chair of News Corp (NASDAQ:NWS) and publisher of The Australian.
He will also continue as executive chair and chief executive officer of Fox Corporation.
“On behalf of the Fox and News Corp (NASDAQ:NWS) boards of directors, leadership teams, and all the shareholders who have benefited from his hard work, I congratulate my father on his remarkable 70-year career,” Lachlan said.
“We thank him for his vision, his pioneering spirit, his steadfast determination, and the enduring legacy he leaves to the companies he founded and countless people he has impacted.”
Treasurer Jim Chalmers hailed the federal budget surplus of $22 billion.
“It demonstrates we have been able to get the budget in better nick at the same time as well as roll out the cost-of-living help (so) the budget surplus hasn’t come at the expense of helping people but it has built a stronger foundation in the budget,” Chalmers told the ABC.
“There hasn’t been a budget surplus for fifteen years now (and) by getting the budget back in the black we are in a stronger position.”
Despite all this news, the ASX will track Wall Street’s overnight losses.
ASX 200 futures are trading 97 points lower, down -1.38% as of 8:20 am AEST.
What happened overnight?
Here’s what we saw (source Commsec):
The S&P 500 finished lower, marking its worst session since March and trading close to a three-month low. In fact, according to Bespoke, it hit its most oversold level of the year at more than two standard deviations below its 50-day moving average.
All sectors are oversold, with Industrials, Materials and Consumer Discretionary the worst hit.
- The S&P 500 dipped 1.64%.
- The Dow Jones lost 1.08%.
- The NASDAQ Comp fell 1.82%
- The Russell 2000 lost 1.56%.
Silver was 0.47% higher, but uranium lost 1.86%, Copper miners were down 2.41%, steel lost 2.49%, Gold miners dipped 2.69%, Lithium and battery tech fell 2.91% and Strategic Metals crashed by 3.06%.
Looking at the commodities:
- Gold lost 1.38%.
- Iron ore was flat.
- Copper dipped 2.25%
- WTI Oil was down 0.09%.
EV interest growing
For those following the growth of the electric vehicle industry, ABF Group and carsales are now hosting the biggest national consumer EV show in Melbourne - the first time the show has been in the city for 15 years.
The carsales Melbourne EV Show is a one-stop shop for everything EV including electric vehicles, plug-in hybrids, e-bikes, e-scooters, charging options and accessories from top industry names including Haval, Audi, FONZ, Polestar, Simplygreen (novated leasing), Peugeot, and McLaren.
“The event promises to bring some exciting features including several new EV’s launching at the event, new products never before seen in Australia, and the impressive Formula E race car,” CEO, ABF Group Ray Evans said.
“We are looking forward to reimagining the EV show with modern eyes and welcoming tens of thousands of EV enthusiasts across the weekend.”
Speakers include Ed Stevens, AGL, Audrey Quicke, Smart Energy Council and Harman Singh of GHD Digital who will speak on a range of topics including green loans and just how easy it is to go EV! Firefighters will even present an activation on how EVs offer a unique and safe alternative when fighting fires.
Electric vehicles offer significant environmental advantages due to their lower running costs and advanced technologies. The Electric Vehicle Council’s yearly recap recorded 83,000 registered electric vehicles in Australia. The growing popularity of EVs in Australia demonstrates the importance of providing eventgoers with a 360-degree view of this fast-charged space.
“Our recent carsales onsite survey found 42% of respondents have considered purchasing an electric vehicle and around 24% say they believe they’ll be driving an EV by 2030,” carsales managing director, Paul Barlow said.
“People are considering electric vehicles, however, there are still a number of unanswered questions and uncertainties – we look forward to shedding insight at the event next month.”
Up 56% YoY, there has been considerable growth in electric car models available in Australia. There are currently 91 models available of 148 variants with exciting new models set to launch at the auto show. With the current State government recommending the elimination of the sale of emitting road vehicles by 2035, it’s clear the future is EV.
The 2023 carsales Melbourne EV Show will take place between 22 – 24 September at the Melbourne Convention & Exhibition Centre, with exhibitors including FONZ, Polestar, Audi, Hyundai and more. Tickets are available from Ticketmaster.
For further information, visit https://melbourneelectricvehicleshow.com.au/.
What about small caps?
The S&P/ASX Small Ordinaries (XSO) dropped 0.91% to 2,727.10.
It has been a slow morning on the news front, but you can read about the following and more throughout the day.
- Sipa Resources Ltd (ASX:SRI) has finished the diamond drill program at its Paterson North project. Assays are due in four to six weeks.
- Yandal Resources Ltd (ASX:YRL) has appointed Chris Oorschot to the board as a technical director effective immediately.
- Mako Gold Ltd (ASX:MKG) has received assay results from the circa 800-metre reverse circulation (RC) drill program on the company’s 90% owned flagship Napié Project and gave an exploration update on the company’s 100% owned Korhogo Project in Côte d’Ivoire.
- Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) updated the market on corporate changes together with a revised care and maintenance operating model at Black Swan which will result in significant cost savings across the company.