The Australian sharemarket is hovering as close to flat as it gets, up by just 1.50 points today to 7,794.80.
The bottom-performing stocks in this index are Polynovo Ltd and Pinnacle Investment Management Group Ltd, up 8.25% and 7.28%.
Over the last five days, the index has gained 2.97% and is currently 1.46% off its 52-week high.
It was a mixed bag across the sectors, with Industrials, Real Estate, Health Care and Information Technology clear of the mark by as much as 0.63%, while Materials (down 0.24%) and Consumer Discretionary (-0.36%) languished just below it and everything else hovered in between.
RBA decision under spotlight
Interest rates are to remain steady for the next six weeks, at least, until the RBA reconvenes in mid-June, with the cash rate on hold at 4.35%.
The RBA Board said in a statement that it could not guarantee there wouldn’t be another rate rise before year’s end.
"The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe remains uncertain and the Board is not ruling anything in or out," it said.
"The Board will rely upon the data and the evolving assessment of risks. In doing so, it will continue to pay close attention to developments in the global economy, trends in domestic demand, and the outlook for inflation and the labour market.
"The Board remains resolute in its determination to return inflation to target."
Commentary came thick and fast following the central bank’s meeting, as stakeholders attempted to come to grips with what this might mean for investors in the medium term.
“The board has taken a slightly more hawkish tone this month, noting the risks posed by lingering inflation. They’ve vowed to be ‘vigilant to upside risks’, keeping the prospect of a future rate hike in play,” said Moody’s Analytics economist Harry Murphy Cruise.
“Much of that is posturing. The threat of future rate hikes can sometimes be enough to dampen demand without the need to actually pull the trigger. Indeed, we think the most likely outcome is for rates to stay where they are until December.
“The RBA’s fears of sticky inflation are valid. Australia is joining a growing list of economies proving that the final mile of bringing down inflation is the hardest. In seasonally adjusted terms, headline inflation accelerated to 0.9% q/q from 0.7% in the December quarter.
“Service inflation, the main culprit holding back progress, jumped 4.3% in the March quarter.
“It was buoyed by the biggest jump in insurance premiums in 23 years, rents growing at their fastest annual pace since 2009, and education fees experiencing their steepest quarter-on-quarter rise in 12 years.
“What is more, a chunk of progress on inflation has come from temporary government rebates that will eventually unwind.
“Inflation will ease from here, but progress will be slow. We expect inflation to hit 3.5% in the June quarter, and not returning to the top of the RBA’s 2%-3% target band until June 2025—three months later than we had initially forecast.
“The RBA expects it to take even longer, with inflation ending 2024 at 3.8%—0.2 percentage points above the most recent print.”
The five at five
Titan Minerals fields more high-grade gold and silver in rock chips as Dynasty footprint expands
Titan Minerals Ltd (ASX:TTM, OTC:TTTNF) has confirmed more high-grade gold and silver in rock chips at its Dynasty Project in southern Ecuador, substantially expanding the project’s footprint.
Element 25 advances HPMSM project, secures key US refinery site
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St George Mining identifies “compelling” lithium targets at Mt Alexander
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Dynamic Metals leveraged to thick magnesium intersections returned from Prospect Ridge
Dynamic Metals Ltd (ASX:DYM) is leveraged to continuing progress by GWR Group (ASX:GWR) (GWR Group (ASX:GWR)) Ltd at Prospect Ridge Magnesite Project in northwest Tasmania where diamond drilling has returned thick intersections of up to 118.7 metres at 43.3% magnesium oxide (MgO) from 6.3 metres.
Sovereign Metals achieves breakthrough in graphite quality for battery anodes at four independent labs
The recent graphite test work of Sovereign Metals Ltd at four independent laboratories in Australia, Canada and South Africa has produced high-grade graphite concentrates with more than 97% total graphite content (TGC) and exceptional flotation recoveries exceeding 90%.
On your six
Solar EV charging market set to reach US$2.5 billion by 2034
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The one to watch
Recce Pharmaceuticals completes global patent portfolio
Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF) CEO James Graham joins Proactive’s Jonathan Jackson to talk through the formal granting of a new Patent Family 2 by the China National Intellectual Property Administration.