The ASX200 closed 0.12% higher today, having trimmed earlier morning gains. It was a strong day for the Telco sector, which gained 1.91%, and Industrials were up 1%.
However, Utilities lost more than 4% after Origin Energy announced soft FY24 earnings and provided weak energy markets guidance. ORG shares lost 9.72% to $9.57. Origin’s results were impacted by higher than forecast costs in the energy markets business and APLNG.
UBS analyst Tom Allen said, "While buy-side were expecting weaker FY25 Energy Markets than consensus, the mid-point of guidance is 13% lower than consensus.
"While FY25 will see earnings reset lower, Origin reiterates that it sees structural tailwinds into the outlook via its gas-fired generation and competitive advantage on gas supply."
Labour market obstacle to inflation
The strength of Australia’s labour market is proving a significant obstacle to lowering inflation, according to Russel Chesler, head of Investments and Capital Markets at VanEck.
Chesler pointed out that while recent Consumer Price Index (CPI) data aligned with expectations, further reductions in inflation may be challenging if the current high level of services inflation persisted, which are largely driven by a robust job market.
He noted that annual wage growth was continuing to rise and job advertisements, which had previously shown signs of declining earlier in the year, saw a slight increase in July, as reported by Seek. The unemployment rate rose to 4.2% last month, despite the economy adding 58,200 new jobs — almost three times the anticipated number.
In contrast, the United States has seen a decrease in inflation to 2.9%, the lowest level since early 2021, which has led to expectations of a rate cut in September.
Chesler highlighted that Australia's economic trajectory was markedly different, suggesting that the country’s path to reduced inflation would face numerous challenges and take considerably longer.
Five at Five
Latin Resources to be acquired by Pilbara Minerals in A$560 million mutually beneficial deal
Latin Resources Ltd (ASX:LRS, OTC:LRSRF) and its flagship Salinas Lithium Project in Brazil are set to be acquired by Pilbara Minerals Ltd (ASX:PLS) in a deal worth around A$560 million.
Artemis Resources exceeds 10,000 g/t gold in rock chips at Karratha’s Titan prospect; up to 23.8% copper as well
Artemis Resources Ltd (ASX:ARV, AIM:ARV, OTCQB:ARTTF) is trading higher after fielding exceedingly strong gold results from rock chip samples gathered at the Titan prospect of the Karratha Gold Project in the Pilbara region of Western Australia.
Aura Energy completes uranium offtake agreement restructure; releases further Tiris value
Aura Energy Ltd (ASX:AEE, AIM:AURA) has completed the restructure of its uranium offtake agreement with Curzon Uranium Ltd, increasing the price receivable for planned production at the flagship Tiris Project in Mauritania, West Africa, and adding value for the project.
Far East Gold works toward maiden gold resource at Idenburg in Indonesia
Far East Gold Ltd (ASX:FEG, OTC:FEGDF) is plotting a course to a JORC-compliant gold resource at the PT Iriana Mutiara Idenburg gold concession in Indonesia, engaging SMG Consulting to lead a site visit and audit of drill cores and assay work
Maximus Resources hits shallow gold up to 25.93 g/t at Hilditch
Maximus Resources Ltd (ASX:MXR, OTC:MXRRF) has completed an infill and resource extension drill program at the Hilditch Gold Project near Kambalda in Western Australia with shallow results of up to 4 metres at 12.44 g/t gold from 47 metres including 1 metre at 25.93 g/t.
On your six
Treating high blood pressure directly reduces risk of Alzheimer's, UNSW research shows
New research from the UNSW’s Centre for Healthy Brain Ageing (CHeBA) in Sydney has highlighted the importance of addressing high blood pressure and the role treating hypertension plays in decreasing the risk of developing Alzheimer's later in life.
One to Watch
Far East Gold begins estimating maiden Idenburg JORC gold resource
Far East Gold Ltd (ASX:FEG, OTC:FEGDF) CEO Shane Menere joins Proactive’s Tylah Tully to discuss plans for a maiden JORC 2012-compliant resource estimate for the Idenburg gold concession in Indonesia.