Economics

The lithium price rout and associated decline in equities could be an opportunity for the long-struggling junior gold space.

Investors, especially on Wall Street and later today in Australia, received the rude shock they deserved from the slight fall in US Consumer Price Inflation in January.

Fletcher Building (ASX:FBU), a prominent player in the construction industry, is poised to resume trading on the Australian Securities Exchange (ASX) at 10 am today, marking the end of a two-day halt initiated after a rapid 6% drop in shares within just 8 minutes.

Blood products behemoth CSL (ASX:CSL) has demonstrated resilience in the face of Monday’s setback concerning a potential blockbuster drug trial, showcasing an impressive 11% enhancement in underlying net earnings to $US2.017 billion ($A3.11 billion).

Glencore has announced intentions to sell its 49% stake in the Koniambo Nickel SAS (KNS) venture, a venture wrought with losses due to plummeting nickel prices exacerbated by the unchecked nickel production in Indonesia.

Alkane Resources (ASX:ALK) has made waves with its latest discovery of high-grade gold and copper deposits at the Northern Molong porphyry project in Central NSW.

In a dramatic turn of events, Fletcher Building (ASX:FBU), a prominent trans-Tasman building products giant, had its shares suspended abruptly yesterday.

As of Friday's market close, the momentum of the US December quarter earnings rebound persists, with over two-thirds of S&P 500 companies having already reported, exceeding initial expectations. The earnings landscape has proven to be more resilient than anticipated, showcasing a positive trend for investors.

In a remarkable feat of resilience, the S&P 500 closed above the key 5,000 level, defying expectations amidst a backdrop of rising interest rates and global geopolitical tensions. Strong earnings reports and positive economic indicators propelled the index to new heights, showcasing a 25% gain in the three years since it surpassed the 4,000-point milestone.

The Australian December half-year reporting season has begun with a flurry of activity, showcasing a mix of positive surprises and anticipated challenges for investors. Nearly 50 ASX 200 companies are set to report, with major players such as the Commonwealth Bank and JB Hi-Fi leading the charge.

Last week witnessed a notable surge in the prices of oil, iron ore, and coal, driven by various global factors. However, gold and copper faced significant setbacks, particularly due to the lack of positive news emanating from China, a key player in the global commodities market.

As the world prepares for a dynamic week of economic indicators and cultural events, eyes are particularly focused on the United States where inflation data is set to be unveiled. The January Consumer Price Index (CPI), both headline and core, along with the Producer Price Index (PPI), are anticipated to dominate discussions, offering insights into the trajectory of the world's largest economy.

In a historic turn of events, Microsoft has officially dethroned Apple to claim the title of the most valuable company ever. Founded decades ago by Bill Gates and others, and listed in 1986, Microsoft's journey reached a pinnacle last week with a staggering market capitalization of $US3.125 trillion, marking the highest value ever recorded for any company.

Wall Street is record-setting, especially among tech and near-tech stocks. Industrials and financials are sagging, and the Magnificent Seven has become six, with Tesla falling behind Apple (a bit weak as well), Nvidia, Alphabet, Amazon, Meta, and Microsoft (more a 'Stellar Six' now than magnificent).

Another month of falling consumer and producer prices in China underscores the country's weak activity and demand. However, a slight silver lining emerged in the consumer price data.

Fed Chair Jay Powell effectively conveyed his message during his 60 Minutes interview on Sunday night, as reflected in the subsequent market movements.

Rare earth prices, which experienced a sharp decline in 2023, are expected to make a strong comeback later this year, driven by growing demand from the electric vehicle and wind power industries, coupled with a potential reduction in production quotas by China, the leading producer of rare earths.

Federal Reserve Chair Jay Powell has once again cautioned investors not to expect a rate cut from the central bank in March and emphasised the prudence the Fed will exercise in reducing the key federal Funds Rate over time.

Last Friday's surge in new US jobs went largely unnoticed by stock investors, but it caught the attention of those in the commodities market, particularly due to the jump in US bond yields and the strengthening of the US dollar.

The Reserve Bank is stepping into the spotlight this week, and investors and the general public can expect more than the usual level of noise from Tuesday afternoon onwards.

The Australian December half and full-year earnings season kicks off this week with several ASX 200 stocks set to reveal their figures. Property groups are leading the way, likely setting an unwanted tone of impairments and losses.

Last week, we witnessed more record-breaking moments in the US and Australian markets, while China faced an unwelcome five-year low, deepening its economic challenges.

A week before the start of China's Lunar New Year break on February 10, the country's stock market has experienced its worst performance in five years. Despite government support discussions for the market, property companies' concerns overshadowed the market due to the Hong Kong court's decision to order the liquidation of China Evergrande, the country's second-largest developer with $US328 billion in debt.

No rate cut is anticipated from the US Federal Reserve following the robust January jobs report and substantial revisions to December's figures.

Tech giants Meta, Amazon, and Apple reported their quarterly earnings after hours on Thursday, offering insights into the performance of some of the world's most influential companies.