Australian investors have enjoyed some fair weather on the markets today, with the S&P/ASX200 up 51.30 points or 0.63% to 8,170.10 after setting a new 20-day low.
Top-performing stocks today were Westgold Resources Ltd and Cleanaway Waste Management Ltd, up 3.71% and 3.33% respectively.
The index has lost 0.50% for the last five days but sits 2.56% below its 52-week high.
Across the sectors, there was a fair bit of green lighting up the board.
Utilities shone the brightest, up 2.18%, with Information Technology (1.78%), Communication Services (1.60%) and Industrials (1.71%) not far behind.
The sole stragglers were Energy (-0.51%) and Markets (-0.56%).
Small cap movers
Among the small caps, Yandal Resources Ltd (ASX:YRL) continued a good recent run with shares up to 25.81% higher intra-day to $0.39, a new high of more than 2.5 years.
Other movers were Altech Batteries Ltd which was as much as 26.1% higher to $0.058, Kali Metals Ltd (ASX:KM1) up as much as 18.52% to an intra-day high of $0.16, Asian Battery Metals PLC (ASX:AZ9) was 13.65% higher than Friday's close to $0.10, Novo Resources Corp (TSX:NVO, OTCQX:NSRPF, ASX:NVO) was 10% higher to $0.11 and Jindalee Lithium Ltd (ASX:JLL, OTCQX:JNDAF) increased by 6.67% to $0.24.
Will they, won’t they?
China’s Ministry of Finance (MoF) for some time now been hinting at a significant fiscal stimulus package to revive the nation’s slowing economy.
While the MoF has announced smaller injections of a few billion yuan here and there, it lacks the authority for large-scale measures.
This week, however, the Standing Committee of the National People's Congress, which holds the power to approve major fiscal policies, is expected to introduce a more substantial package when it concludes its meeting on Friday.
This shift in our largest trading partner’s fortunes would obviously have some flow-on impacts for Australia. With this in mind, there has been some feverish guessing at the size of the package.
Analysts are divided on the scope, with Societe Generale forecasting an immediate stimulus package between 3 to 4 trillion yuan (US$640 billion to US$850 billion), while ANZ anticipates a smaller, more targeted plan.
Societe Generale’s China economists predict the forthcoming package could commit an additional 2.5% to 3.5% of GDP per year over the next three to four years, with the goal of halting deflation and stabilising consumer confidence.
They suggest this announcement may mark the beginning of a broader fiscal shift aimed at addressing structural economic challenges.
That said, they’re cautious about any long-term measures to boost consumption, which they believe will require a more sustained strategy that may not emerge immediately.
Meanwhile, ANZ economists Raymond Yeung and Zaoping Xing have a different outlook, anticipating a more restrained 1 trillion yuan (US$200 billion) stimulus via special local government bonds.
They also expect a 10 trillion yuan (US$2 trillion) debt swap program aimed at alleviating local governments' financial strain rather than directly boosting GDP growth.
ANZ suggests that this debt swap could enhance local government creditworthiness by transferring “hidden” debts to the Ministry of Finance.
They caution, however, that meaningful growth would likely require a more comprehensive reform of China’s fiscal and tax systems to support local financial stability in the long run.
The five at five
Eclipse Metals powers up for uranium finds on extensive tenements in NT
Eclipse Metals Ltd (ASX:EPM) is sitting on some highly prospective uranium tenements within the fertile Ngalia Basin and the Alligator Rivers Uranium Field in the Northern Territory.
American Rare Earths congratulates director on appointment as Critical Minerals Institute co-chair
American Rare Earths Ltd (ASX:ARR, OTCQB:ARRNF) congratulates Melissa Sanderson, a key member of its Board of Directors, on being appointed co-chair of the Critical Minerals Institute (CMI), a global organisation dedicated to addressing critical challenges and opportunities in the minerals sector.
Livium secures A$850,000 state government grant for battery recycling facility
Livium Ltd (ASX:LIT, OTC:LMMFF) has picked up an A$850,000 grant from the Western Australian Government to establish a battery recycling facility as part of the state’s electronic waste infrastructure funding program.
Titan Minerals has diamond drill spinning in resource growth campaign at Dynasty Gold Project
Titan Minerals Ltd (ASX:TTM, OTC:TTTNF) has a diamond drill campaign underway at the Dynasty Gold Project in the prolific copper and gold region of southern Ecuador targeting resource extensions and new exploration targets.
Intra Energy Corporation raises $850,000 to progress exploration at Maggie Hays Hill
Intra Energy Corporation Ltd (ASX:IEC) will use $850,000 raised in a two-tranche non-brokered placement to advance exploration at the Maggie Hays Hill Gold and Lithium Project in Western Australia.
The one to watch
Fortescue Metals withdraws from Rawlinna renewable purchase citing approval delays
Mining magnate Andrew ‘Twiggy’ Forrest’s Fortescue Metals Group has officially pulled out of its planned acquisition of the enormous parcel of land that hosts Western Australia's largest sheep station, Rawlinna Station, following what it says were extended delays in receiving ministerial approval.
The one to watch
Elixir Energy expands gas resource estimates in Queensland’s Taroom Trough
Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) managing director Neil Young joins Proactive’s Tylah Tully to discuss increasing the company’s resource in Queensland’s Taroom Trough through a new Prospective Resource estimate of 712 billion cubic feet (2U) in Sub-Block B of its wholly-owned ATP 2077 licence.