The ASX200 is trending toward finishing the week on a high note, up 0.83% these last five days, having lifted 5.64% over the last month.
Information Technology had the most momentum over the last 5 trading days, lifting 4.24%.
Communication services (3.23%), Health Care (2.67%), Utilities (2.12%) Industrials (1.57%), Consumer Discretionary (1.48%) Consumer Staples (1.39%) all finished higher, with Materials (0.61%) and Financials (0.61%) holding above the line as Real Estate (-1.02%) and Energy (-3.60%) dropped into the red.
On the commodities side, West Texas Intermediate (WTI) crude oil (-9.76%), aluminium (-3.00%) and palladium (-0.72%) were the only sectors that fell over the week, with platinum (5.07%) and zinc (5.25%) gaining the most.
The All Ords is also looking up, having made up 1.66% in the last week and 6.44% over the last month, and the Small Ordinaries made even greater headway, gaining 3.05% for the last five days and 11.55% for the month.
Bank of England warns “long recession” incoming
The Bank of England (BoE) has warned the UK may be in for at least a year-long recession after inflation peaks above 13% this year, as the bank raised interest rates 50 basis points, the largest increase since 1995.
The UK is also experiencing its worst slump in living standards since records began in the 1960s, with post-tax disposable income expected to fall for two consecutive years, 1.5% this year and 2.25% the next.
Rising interest rates – ostensibly to flatten inflation – will apply even more pressure on struggling families, especially borrowers with a significant amount of debt in the form of mortgages or other long-term loans.
Energy has also reached a premium in the UK, which as of today occupied the number 11 spot for highest price per litre of petrol at £2.21 (A$3.85), while the average electricity bill increased 36% year-on-year and the average oil heating price tripled.
Financial markets are betting the BoE will raise interest rates to 3% by the middle of next year – the bank itself has flagged an increase to at least 1.75%, which would be the highest rate since 2009.
BoE Governor Andrew Bailey expressed his sympathy for households suffering under rising interest rates but asserted that “the alternative is even worse”.
"Returning inflation to the 2% target remains our absolute priority," Bailey said. "There are no ifs or buts about that."
US declares monkeypox a health emergency
Today US Department of Health and Human Services Secretary Xavier Becerra declared monkeypox a Public Health Emergency.
Monkeypox or MPX is a viral zoonotic disease (meaning it transferred to humans from animals) in the same family as smallpox.
The illness is usually mild, with patients recovering in a few weeks, but signs and symptoms include a distinctive lumpy rash, swollen lymph nodes, fever, headache, joint pain, and other typical viral symptoms. Symptoms begin 5 to 21 days after exposure.
The US public health declaration comes just days after the World Health Organization (WHO) issued its highest emergency alert following a worldwide surge in cases.
“President Biden has called on us to explore every option on the table to combat the monkeypox outbreak and protect communities at risk,” White House National Monkeypox Response Coordinator Robert Fenton said.
“We are applying lessons learned from the battles we’ve fought – from COVID response to wildfires to measles, and will tackle this outbreak with the urgency this moment demands.”
In Australia, the federal government has secured 450,000 third-generation vaccines to combat the disease, in what’s been described as a "highly contested" global market.
"The first element of the government's actions against monkeypox is to procure the world's best vaccines for Australians," Australian Health Minister Mark Butler said.
"We are one of only a very limited number of countries that have been able to secure supplies of this in a highly contested market.”
The monkeypox vaccine prevents transmission and can be used as a post-exposure treatment, meaning vaccines are vital to effectively stopping the spread of the disease.
Chief Health Officer Paul Kelly said the vaccines would go to those at the highest risk from monkeypox, but assured the public that he and Health Minister Butler are confident the outbreak would remain under control in Australia.
ACT Chief Minister Andrew Barr, the first leader of an Australian state or territory to be openly gay, highlighted the need to remove bias in public health messaging.
"Anyone, regardless of their sexuality, who has multiple sexual partners is at risk," Barr said.
"Doesn't matter whether you're gay or straight, or something in between – that's an important message."
China conducts “live fire” exercises over Taiwanese waters following visit by US House Speaker
Global tensions are reaching a simmer not seen for many years. Multiple countries have now ratified Finland’s entry into NATO, Russia is cutting off gas to Europe, and China is making waves with its diplomatic overtures in the south pacific.
In the latest escalation, China has retaliated against US Speaker of the House Nancy Pelosi’s visit to Taiwan with “live fire exercises” in Taiwan’s territorial waters and surrounds.
The People’s Republic of China has always claimed the independently governed island of Taiwan as sovereign Chinese land, but in her visit to Taipei Pelosi once again underscored the US’ “iron clad” commitment to a democratic, self-governed Taiwan.
Taiwan’s Ministry of Defence confirmed that China fired several ballistic missiles into waters to the north-eastern and south-western of Taiwan just before 2pm.
The White House accused Beijing of “manufacturing crisis” and called the military actions “irresponsible".
“We have a robust military capability in the region. We have strong alliances and partnerships in the region. We also have economic throw-weight, we have diplomatic throw-weight. There’s a lot of things that the United States can bring to bear if we feel like we need to,” National Security Council spokesman John Kirby said.
“But here’s the thing: we shouldn’t need to do it.
“It shouldn’t come to blows. There’s no reason for this manufactured crisis to exist there, but the Chinese have used Speaker Pelosi’s trip as a pretext to try to up the ante intentionally and actually try to set a new status quo.”
Australian Minister for Foreign Affairs Penny Wong encouraged all parties to “de-escalating the current situation” during her visit to Phnom Penh, Cambodia to meet with regional counterparts including US Secretary of State Antony Blinken and Chinese Foreign Minister Wang Yi.
“One of the risks that I think the region is concerned about is the risk of miscalculation.”
Small cap wins of the week
Cobre Ltd (ASX:CBE) surged 103.4% over the last five trading days, hitting multiple broad, high-grade copper intersections at the Ngami Copper Project in Botswana. The company also kicked-off a $7 million share placement to accelerate exploration of Ngami.
Incannex Healthcare Ltd (ASX:IHL, NASDAQ:IXHL) has jumped 32.9% over the week, having partnered with R&D organisation Curia and acquired one of the largest cannabinoid patent portfolios in the world.
Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF) rose 17.6% after hitting multiple bonanza gold intersections over 100 g/t at the Cue Gold Project.
Finally, Lindian Resources Ltd (ASX:LIN) hiked 44.4% after the company acquired a sought-after rare earth project in Malawi and appointed a new CEO with rare earth expertise.