Wednesday, February 8, 2023
HomeBusinessASX opens higher after falling inflation data: ASX up 0.03% at noon

ASX opens higher after falling inflation data: ASX up 0.03% at noon

The US consumer price inflation data was released in the US overnight, with results showing that inflation has eased more than expected in November to its lowest point in almost a year.

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The CPI fell to 7.1 per cent last month, lower than the 7.3 per cent forecast by economists. This shows the lowest level since December 2021.

On the ASX, Energy, Information Technology, Utilities, and Real Estate all up by above a per cent higher, whilst Financials is down by 0.47 per cent.

The SPI futures are pointing to a rise of 3 points.

Best and worst performers

The best-performing sector is S&P/ASX 200 Energy, up 1.20 per cent. The worst-performing sector is S&P/ASX 200 Financials, down 0.53 per cent.

The best-performing large cap is Evolution Mining (ASX:EVN), trading 3.19 per cent higher at $2.91. It is followed by shares in Whitehaven Coal (ASX:WHC) and South32 (ASX:S32).

The worst-performing large cap is Endeavour Group (ASX:EDV), trading 4.93 per cent lower at $6.37. It is followed by shares in TPG Telecom (ASX:TPG) and Bendigo and Adelaide Bank (ASX:BEN).

Asian news

Asia-Pacific markets traded higher on Wednesday, after stocks on Wall Street saw a second day of gains on an inflation print that came in cooler than expected.

Investors are also anticipating the Federal Reserve’s next interest rate decision at the conclusion of its two-day policy meeting. Traders are largely pricing in a 50-basis point increase, a slight decline from the previous four hikes.

Company news

Aspen Group (ASX:APZ) has announced it has acquired 41.16 million shares in Eureka Group Holdings (ASX:EGH) @ 39 cents a share representing 13.7 per cent of its total shares on issue. The total cost of the acquisition was $16.1 million. Both Aspen and Eureka provide quality accommodation on affordable terms. Aspen owns a diversified portfolio of residential, retirement and park communities valued at approximately $450 million. Eureka owns mainly rental apartments in retirement communities valued at approximately $185 million. Shares are trading 13.79 per cent higher at $0.495 at noon.

Patriot Battery Metals Inc (ASX:PMT) has announced positive results from their recent drilling campaign for lithium pegmatite. The primary drill area is focused at the CV5 Pegmatite, located in Canada. In response, Blair Way, Company President, CEO and Director, comments: “the strike length of the CV5 Pegmatite system remains open in all directions with wide widths and strong grades encountered along its currently defined 2.2 km length.” Shares are trading 10.56 per cent higher at $0.995 at noon.

Bass Oil (ASX:BAS) has announced that their wireline program has increased its Cooper Basin production by 30 per cent. Commenting on this result, Bass’ Managing Director Tino Guglielmo said, “The program has resulted in a 30 per cent increase in production over recent levels and a 62 per cent increase in production since Bass took over the asset in August.” Shares are trading 5.88 per cent higher at $0.072.

Commodities and the dollar

Gold is trading at US$1782.70 an ounce.
Iron ore is flat at US$110.30 a tonne.
Iron ore futures are pointing to a 0.75 per cent rise.
One Australian dollar is buying 68.27 US cents.





Peter Milios


Peter Milios is a recent graduate from the University of Technology – majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.


Image & Story Credit: finnewsnetwork.com.au

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