The ASX200 had a solid day of green trading today, adding 56.6 points or 0.67% to the index to lift to 8,455.7 points.
There was broad strength across the market but the standout sectors were Information Technology, up 1.9% as it rode the Nasdaq’s 2% overnight gain higher, and Utilities, up 2.04%.
With inflation falling to just 2.4% in the year to December, the path is open for the Reserve Bank to cut interest rates at its meeting next month, buoying market sentiment.
As underlying inflation dropped to 3.2%, below the 3.3% prediction, markets are pricing at least an 80% chance that the RBA cuts rates next month.
Wisetech Global lifted 2.98%, Xero 2.52% and Life360 Inc 2.69%.
As for Utilities, Origin Energy lifted 1.37%, AGL 3.06% and Mercury NZ Ltd 7.5%.
Real Estate (+1.64%) also put in a strong performance, with all eight large cap stocks within the sector adding between 1.49% and 2.65% to their stock prices.
The weakest sectors were Materials (+0.03%), Consumer Staples (+0.24%) and Financials (+0.47%) but all 11 were in the green today.
The best-performing stocks were Star Entertainment Group, up 13.04%, and Bellevue Gold Ltd, up 8.14%.
The ASX has gained 0.31% over the last five days and currently sits 0.69% off its 52-week high.
Nvidia fights back amid new AI arms race
XTB research director Kathleen Brooks details yesterday’s US stock movements, highlighting what it all means for tech darling Nvidia amidst a new Artificial Intelligence market shake up in the form of Chinese AI DeepSeek.
“US stocks staged a recovery rally on Tuesday, hot on the heels of Monday’s sell-off,” writes Brooks.
“Nvidia jumped by 8%, after dropping nearly 17% on Monday. This suggests that the bargain hunters are in town, although the failure to see a complete reversal of Monday’s losses could suggest a permanent loss of value for Nvidia.
“Nvidia was the best performer out of the Magnificent 7 on Tuesday, and along with Microsoft and Meta, it was also one of the top performers on the S&P 500.
“However, even accounting for today’s rally, semiconductor stocks remain pressured to the downside. The semiconductor index in the S&P 500 has gone from hero to zero in 2025.
“The prospect of a credible Chinese threat to US AI dominance has triggered a sharp selloff in Nvidia, AMD etc., and this sector index is one of the top 10 weakest performers in the S&P 500 so far this year, and is down nearly 5%.
“As we have mentioned, Nvidia is no stranger to steep sell offs. It has experienced 8 of the 10 biggest stock sell offs according to market cap, and it has always bounced back.
“However, there is a feeling in the market that this time could be different. Essentially, DeepSeek is spurring rapid rethink about Nvidia.
“Will it continue to record monster revenue and profit margins, if its most expensive chips are unnecessary for the best inference models? This was not a widespread concern a week ago, but it is now the main question that needs to be asked when buying Nvidia stock.
“For now, bargain hunters have helped Nvidia’s stock price to partially recover, but will it reach the valuations from last week, we think not. There will be winners and losers from China’s dramatic entrance into the AI race this week.
“Those who are the buyers of chips, such as Meta and Amazon, could see their costs fall, which is better for their bottom line and thus their stock prices. However, the producer of chips, such as Nvidia and AMD, may see a structural shift in demand.
“This is also why ASML, the maker of equipment used in the production of chips, failed to recover on Tuesday after a 12% decline in the last 5 days. However, ASML did rally slightly in the post market on Tuesday evening.
“This is an important week for tech stocks, can a strong set of earnings reports fuel another leg of the recovery?
“The alternative view is that DeepSeek acts like a brake on stock market appreciation, since these earnings may not factor in the impact of cheap Chinese competition in the future.”
Small cap increases
Yandal Resources Ltd reached $0.155, an increase of 14.81% on the previous close, Pantoro Ltd climbed 10% to a daily high of $0.11 and Constellation Resources Ltd was 10% higher than the previous close at $0.22.
Other increases were registered by Ora Banda Mining Ltd, which was 9.59% higher to $0.80, Kali Metals Ltd lifted 9.09% to a daily high of $0.12, International Graphite Ltd reached $0.069, an increase of 7.82%, Peninsula Energy Ltd climbed 7.55% to $1.425, Astral Resources NL was as much as 7.14% higher to $0.15, Sovereign Metals Ltd increased 6.62% to $0.805 and Alkane Resources Ltd hit a daily high of $0.565, a rise of 6.6%.
The Five at Five
Surefire Resources extends gold zone at Yidby to more than 500 metres
Surefire Resources NL has expanded the gold mineralisation zone at its 100%-owned Yidby Gold Project in Western Australia to more than 500 metres after receiving broad results from recent drilling.
American Rare Earths grows Halleck Creek resource to 2.63 billion tonnes with “truly remarkable” upside potential
American Rare Earths Ltd has lifted the mineral resource estimate (MRE) at its Halleck Creek Rare Earth Project in Wyoming, USA, by 12.2% to 2.63 billion tonnes at 3,926 ppm total rare earth oxides (TREO), highlighting the transformational scalability of the project, which remains open at depth and along strike.
Brightstar Resources begins Laverton Hub ore haulage; first gold pour expected in March
Brightstar Resources Ltd has kicked off its 2025 production program with ore haulage underway from the Laverton Hub in Western Australia in preparation for the first gold pour expected in March.
Riversgold unearths rock chips up to 8.99% copper, 41.6 g/t gold and 240 g/t silver at Saint John in Canada
Riversgold Ltd has generated high-grade, multi-element results from a set of rock chip assays at the Saint John Project in Canada, with strong evidence of copper, gold and silver mineralisation.
Australian Vanadium namesake project gains Green Energy Major Project status
Green Energy Major Project status has been granted to Australian Vanadium Ltd’s Australian Vanadium Project, which it says will unlock domestic vanadium production and support its strategy to deploy vanadium flow batteries to meet Australia’s growing need for medium- and long-duration energy storage.
On your six
Inflation cools to three-year low, strengthening case for RBA rate cut
Australia’s inflation rate has fallen to its lowest level in more than three years, bolstering the case for the Reserve Bank to deliver an interest rate cut when it next meets on February 17 and 18.
One to watch
Livium’s strong cash position and future plans
Livium Ltd managing director and CEO Simon Linge talks with Proactive’s Tylah Tully about the company’s latest quarterly update, highlighting key developments in its recycling business and advancements in LieNA® technology.