The ASX has recovered its Monday losses.
S&P/ASX200 has gained 80.70 points or 1.11% to 7,320.50 after setting a new 20-day low.
The index has lost 1.22% for the last five days but sits 4.09% below its 52-week high.
Top-performing stocks so far are Credit Corp Group Ltd up 8.84% and AMP Limited (ASX:AMP) up 6.97%.
AMP shares were up after it outlined its plans to demerge its private markets business in the first half of 2022.
Other winners were Credit Corp up 3.9% to $31.40 after acquiring the assets of Radio Rentals from Thorn Group.
Westpac was 1.3% higher to $21.20 despite ASIC’s lawsuit.
On the down dip were Netwealth falling 3.3% to $15.62, Ramelius Resources dropping 2.5% to $1.58 and Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) trading 2.3% lower at $1.67.
Record surplus
The Australian Bureau of Statistics has reported that Australia posted a record current account surplus in the September quarter.
The seasonally adjusted surplus increased by $1 billion to $23.9 billion in the September quarter.
This surplus was driven by an $8.1 billion increase in the balance on goods and services surplus. Exports of goods and services was $9.7 billion higher and imports of goods and services was $1.6 billion higher.
The net primary income deficit rose by $7.7 billion to $14.3 billion in the September quarter 2021.
“Australia’s September quarter record current account surplus was driven by strong prices for exports of coal and other mineral fuels as well as greater volumes of agricultural exports,” ABS head of international statistics Andrew Tomadini said.
“Import volumes fell this quarter as global supply chain pressures began to be felt in Australia. These falls were partially offset by rises in imports of processed industrial supplies n.e.s which saw large increases in imports of COVID-19 vaccines as the national roll-out gathered pace.”
Macquarie raises $1.3 billion
Macquarie Group closed its Share Purchase Plan with $1.3 billion in fresh equity issued.
It will issue 6.8 million new shares at the same $191.28 price offered as part of its $1.5 billion placement to institutional shareholders in October.
Macquarie has now raised $2.8 billion that will enable further growth.
“We are very pleased with the positive response from our shareholders. In addition to the institutional placement, proceeds raised under the SPP will provide additional flexibility to invest in new opportunities where the expected risk-adjusted returns are attractive, while maintaining an appropriate capital surplus,” Macquarie Group chief executive Shemara Wikramanayake said.
Is iron ore set to surge?
If China eases its steel mill production cuts, we could see iron ore prices surge as early as next month.
According to Fastmarkets MB, the iron ore spot price has jumped 6.8% to $US103.27 a tonne today, regaining the losses from the Omricon sell-off.
Rumours have it that China is set to restart idle plants in December.
“This could mark the inflection point after months of pressure on output,” said senior commodity strategist at ANZ, Daniel Hynes.
Steel production curbs have been the primary reason for iron ore’s slump, but that looks about to change.
“Steel margins lifting is a positive sign from the demand side which has coincided with positive news from the steel output side,” said Vivek Dhar, director of mining and energy commodities research at the Commonwealth Bank.
“Our projection for iron ore prices is reliant on steel demand, and if that is emerging from the bottom, we could be in a positive space come next year, particularly after Chinese New Year and the Olympics.”
On the small cap front
Blackstone Minerals Ltd (ASX:BSX, OTCQX:BLSTF) is up 5.26%. BSX has intersected copper, nickel and cobalt mineralisation in the first hole drilled at Jewel prospect.
RPM Automotive Group Ltd (ASX:RPM) is 5.17% higher. RPM has a new chief financial officer (CFO) at the helm.
GTI Resources Ltd (ASX:GTR) is up 3.85%. GTR has started drilling at the Thor ISR Uranium Project in Wyoming’s Great Divide basin with two mud rotary drill rigs.
Tietto Minerals Ltd (ASX:TIE) is up 2.89%. TIE has again grown its flagship Abujar Gold Project in Côte d’Ivoire in West Africa, with the latest drilling results returning more high-grade gold.
Tamboran Resources Ltd (ASX:TBN) is 2.56% higher. TBN has appointed three executives to its management team to help fast-track plans for the Beetaloo Sub-basin in the Northern Territory.
Matador Mining Ltd (ASX:MZZ, OTCQX:MZZMF) is up 1.43%, encouraged by initial results of step-out drilling.