Energy and IT stocks are behind today’s positive market movement. The S&P/ASX200 is up sharply, gaining 138.80 points or 1.67% to 8,439.00. Over the last five days, the index has gained 2.22% and is currently 0.01% off of its 52-week high.
The top-performing stocks in this index are TechnologyOne Ltd and Sonic Healthcare Ltd, up 10.99% and 6.98% respectively.
All sectors were in the green today, with Information technology gaining 3.67% and Utilities 2.07% higher. Energy gained 1.86%.
Oil prices surged overnight as geopolitical tensions and a weakening US dollar overshadowed bearish market signals. West Texas Intermediate rose 3.2%, settling above US$69 per barrel after the US approved Ukraine's use of long-range missiles within Russia, intensifying conflict-related concerns.
Woodside Energy Group and Santos Ltd climbed 1.4% and 1.7%, respectively, while Ampol Ltd, Australia’s largest refinery, gained 1.5%. Santos also benefited from its announcement to increase dividend payouts to at least 60% of free cash flow from the next financial year, up from the current 40%.
Financial stocks also performed well, led by the major banks. Commonwealth Bank of Australia (ASX:CBA) gained 1.2%. Westpac rose 0.9%, National Australia Bank added 0.8% and ANZ increased by 0.4%.
Gold producers advanced sharply as the price of bullion posted its strongest rise since August. Goldman Sachs projected gold prices could hit US$3,000 per ounce next year, advising investors to “go for gold”. Spot gold is currently trading at US$2,616.60 per ounce.
Looking at small caps, the S&P/ASX Small Ordinaries gained 1.18% to 3,169.60. Over the past five days, it is 0.38% higher.
The Australian dollar strengthened to trade at 64.99 US cents just after midday .
Is RBA opening door to policy easing?
ANZ has highlighted "guarded references" in the Reserve Bank of Australia (RBA) minutes, suggesting the Board may be opening the door to potential policy easing.
Adam Boyton, ANZ’s head of Australian Economics, noted that any easing in early 2025 would likely depend on a moderation in trimmed mean inflation, which he expects.
He also found the use of the term "immediate" noteworthy in explaining why the RBA opted to keep the cash rate unchanged in November.
The minutes emphasised the importance of being "forward-looking" to avoid relying excessively on backward-looking data, which could result in delayed responses to changing economic conditions.
The minutes reiterated the need to maintain sufficiently restrictive monetary policy until there is confidence that inflation is moving sustainably towards target levels. Members also considered several scenarios where key forecasts could prove incorrect, potentially warranting adjustments to monetary policy.
One such scenario involved inflation declining "materially more quickly than forecast." In this context, members noted that such a decline could justify a reduction in the cash rate. However, they emphasised the need to see more than one strong quarterly inflation outcome to confirm sustainability.
Boyton clarified that these discussions were part of hypothetical scenarios, not an indication of current policy direction.
He reiterated ANZ's expectation for the RBA’s first rate cut to occur in February 2025, adding, "The balance of activity data had suggested the risks of a later start to the easing cycle were rising. The tone in the minutes today tempers that risk a little."
Small cap movers
An impressive mover in the small cap sector was Olympio Metals Ltd (ASX:OLY, OTC:COPGF), which was up by 76.5% on the back of strong news to $0.06. Discovery Alaska Ltd (ASX:DAF, OTC:DRVYF) was 38.46% higher to $0.018 and Firebird Metals Ltd (ASX:FRB, OTC:FRBMF) increased by up to 37.37% to $0.125.
Other increases were notched up by Lunnon Metals Ltd (ASX:LM8, OTC:LNMLF), which was 15.22% higher to $0.018, Magmatic Resources Ltd (ASX:MAG) lifted 11.36% to $0.049, Anteris Technologies Ltd (ASX:AVR, OTC:AMEUF) reached $10.23, which was 10.78% higher, Titan Minerals Ltd (ASX:TTM, OTC:TTTNF) increased 8.44% to $0.45, Empire Energy Ltd rose 8.11% to $0.20 and Ora Banda Mining lifted 6.9% to $0.775.
Five at five
Stellar Resources fields 'record' high-grade tin intersection from Severn deposit at Heemskirk
A ‘record’ high-grade tin intersection of 20.9 metres at 1.97% tin is part of the haul Stellar Resources Ltd (ASX:SRZ, OTC:SLROF) has made in first drilling results from the ongoing program at the Heemskirk Tin Project in Western Tasmania.
Green Technology Metals uncovers new pegmatite zone at Seymour Project’s Eastern Hub
Green Technology Metals Ltd has identified a new pegmatite discovery dubbed the “north upper zone” at the Eastern Hub Aubury Deposit of the Seymour Lithium Project in Ontario, Canada, in an extensional diamond drilling program.
Leeuwin Metals expands iron footprint at West Pilbara Project with rock chip samples up to 54.66% iron
Leeuwin Metals Ltd has unearthed additional iron mineralisation in follow-up rock chip sampling undertaken at the West Pilbara Iron Project in WA.
Olympio Metals secures strategic foothold in Canada’s prolific Cadillac Break with Dufay Project acquisition
Olympio Metals Ltd (ASX:OLY, OTC:COPGF) is expanding its portfolio, securing an option to acquire an 80% stake in the Dufay Copper-Gold Project in Canada.
Tryptamine Therapeutics will advance to TRP-8803 psilocin Phase 2 clinical trials
The recently completed Phase 1b study of Tryptamine Therapeutics Ltd (ASX:TYP, OTC:TYPTF) successfully met all key objectives, paving the way to advance to Phase 2 clinical trials of TRP-8803 — an innovative and scalable psilocin-based IV-infusion with potential neuroplastic benefits.
On your six
Novotech report on small cell lung cancer sector reveals promising treatment progress
The 'Small Cell Lung Cancer – Global Clinical Landscape 2024' report of clinical trial services company Novotech offers hope to those suffering from the aggressive cancer type, detailing innovations in therapeutic strategies and a raft of new treatments in development.
The one to watch
Sprintex G15 Blowers achieve 70% energy savings in aquaculture trial
Sprintex Ltd (ASX:SIX) managing director Jay Upton joins Proactive’s Tylah Tully to discuss the results from a trial of its G15 Blowers. The blowers achieved a 70% reduction in energy consumption during a trial at Ilknak Aquaculture in Türkiye, leading to a A$184,000 order from its Turkish distributor, Net 0 Enerji.