Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

FIVE at FIVE AU: ASX rebounds after difficult week marked by fears of escalating conflict and rate increases

Published 22/04/2024, 04:08 pm
© Reuters FIVE at FIVE AU: ASX rebounds after difficult week marked by fears of escalating conflict and rate increases

After setting a new 20-day low, the Australian sharemarket was up again today, gaining 81.90 points or 1.08% to 7,649.20.

Top-performing stocks were South32 Ltd and Lovisa Holdings Ltd, up 5.64% and 4.87% respectively.

The index has lost 1.78% for the last five days but is virtually unchanged over the last year to date.

Last week the local share market slumped to its lowest level since February against the backdrop of escalations in the Middle East conflict. The ASX 200 finished down 74.8 points on Friday, or 0.98%, to 7,567.3, a weekly loss of 2.8%.

The broader All Ordinaries fell 81.5 points, or 1.03%, to 7,817.4 as concerns lingered that US inflation could push back Federal Reserve interest rate cuts, while safe havens including bonds, gold and oil prices were looking good.

Domestically, interest rate markets are no longer pricing in a cut before the end of the year, with continuing strength in the jobs market adding to the case for the Reserve Bank to keep rates higher for longer.

Every official ASX sector finished in the red, with energy stocks the least affected.

With the start of a new week, today was a completely different story. Across the sectors it was a sea of green, with Health Care leading the charge, up 1.97%, followed by Communication Services (1.73%) and Industrials (1.51%). The one exception was Energy, which was down 1.51% at close of play.

Bitcoin halves

Last week, Bitcoin halved for the fourth time and eToro market analyst Josh Gilbert had this to say:

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

“This week, investors will be focused on the market's reaction to the halving, given we’ve seen a sharp sell-off over the past few weeks amid rising geopolitical tensions and a pushback on rate cut expectations.

“The halving’s impact isn’t instant but it does, in the short term, provide the catalyst to reignite retail interest, which we’ve yet to really see in 2024 compared to previous cycles. As expected, we’re seeing a slightly muted reaction to the halving event, given its longer-term impact.

“The performance of bitcoin around halving events speaks for itself but when we add in the introduction of the institutional interest we have in 2024, this halving makes for one of the most exciting we’ve had yet. Bitcoin’s supply is being cut at a time when institutions are buying the asset by the bucket load.

“Following the halving, only 450 bitcoin are being mined each day, while institutions have accumulated 835,000 BTC since their inception. If we continue to see the interest in the ETFs we have since the start of the year, there is an evident supply/demand imbalance.

"So, although we will likely see reaction muted in the short term, particularly as geopolitical tensions persist, the closer we move to rate cuts coupled with the recent halving, bitcoin could be eyeing six figures in this next cycle."

The five at five

European Lithium to acquire Leinster Lithium Project in Ireland for Critical Metals Corp shares

European Lithium Ltd (ASX:EUR, OTCQB:EULIF) has entered a binding agreement to acquire the Leinster Lithium Project in Ireland as it continues to build a portfolio of quality exploration projects in highly prospective European lithium provinces.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Read more

International Graphite garners $6.5 million grant from WA Government for Collie operations

International Graphite Ltd (ASX:IG6) has attracted yet more attention and investment from the Western Australian Government, drawing a grant of $6.5 million to advance its plans for downstream graphite operations at its site in Collie, Western Australia.

Read more

Lightning Minerals turns focus to Brazil’s prolific Lithium Valley with acquisition of highly prospective projects

Lightning Minerals Ltd (ASX:L1M) is expanding its portfolio to Brazil and is set to pick up Bengal Mining Pty Ltd, which holds option agreements over two lithium projects in Brazil’s prolific Lithium Valley district in the state of Minas Gerais, through a wholly owned subsidiary.

Read more

Brazilian Critical Minerals fields massive 1 billion tonnes maiden REE resource at Ema Project

Brazilian Critical Minerals Ltd (ASX:BCM) has produced one of the world's largest tonnage mineral resource estimates (MRE) for fully ionic clay rare earth deposits at the Ema Rare Earths Element (REE) Project in Brazil.

Read more

Toubani Resources hits up to 2 metres at 178 g/t gold in Kobada resource definition drilling

Toubani Resources Ltd (ASX:TRE) has hit high-grade oxide gold intersections during infill drilling at the 2.4-million-ounce Kobada Gold Project in Mali, producing a screen fire assay of up to 2 metres at 178 g/t gold as part of a 19-metre intersection grading 20 g/t from 105 metres.

Read more

On your six

Tech Bytes: Six ways to use AI beyond text generation

Generative AI is making tsunami-sized waves in digital industries at the moment, threatening to cause a structural shift in the way we think about content generation and its availability.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Read more

The one to watch

Orion Minerals delivers record high-grade copper intercepts at Okiep

Orion Minerals Ltd (ASX:ORN, JSE:ORN) MD and CEO Errol Smart joins Jonathan Jackson in the Proactive studio to discuss exceptional initial results from diamond drilling at Flat Mine East, part of the Okiep Copper Project in the Northern Cape Province, South Africa.

Watch

Read more on Proactive Investors AU

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.