Tech has led the ASX higher today as iron ore rallies. Singapore iron ore futures for July contract are slightly higher at $US104 on Wednesday, while August futures are up 3.4% to $US100.60. September futures are up 3.4% to $US100.80.
The benchmark S&P/ASX200 gained 109.60 points or 1.65% to 6,759.20 and set a new 20-day high. Over the last five days, the index has gained 2.08% but is down 9.21% for the last year to date.
Top-performing stocks in this index today were Megaport Ltd (ASX:MP1) up 23.03% and Zip Co Ltd (ASX:Z1P) up 12.71%.
BHP Group Ltd hasn’t had a great year this year but at least it contributed to most of Wednesday’s gains, with shares up 1.9% to $37.31. Fortescue Metals Group (ASX:FMG) Ltd surged 4.6% to $17.80, while Rio Tinto Ltd jumped 2.6% to $98.14.
In the news today
Review into RBA welcomed
Business Council chief executive Jennifer Westacott has welcomed a review of the Reserve Bank of Australia, which will undergo a wide-ranging review of its performance, governance and mandate in light of Australia’s strong economic headwinds and the RBA’s response to the pandemic which many in the finance industry have been critical of.
“The RBA is one of our most important economic policy-making institutions, so it makes sense to take stock and ensure it is working as well as it can be,” Westacott said.
“It is important that this review focuses clearly on the governance and policy settings of the central bank.
“The RBA framework has served Australia well over a long period and through many crises, so it will be crucial that we stay true to the fundamentals of our independent model.”
Treasurer Jim Chalmers told the Australian Strategic Form today that it was time for a rethink on monetary policy, with its effectiveness now being impacted by structural barriers.
“Things will likely get harder before they get better, but they will get better,” Dr Chalmers told the forum.
“I mean, this is a really good time to review the role of monetary policy and the framework into the future, to review and rethink and review and refine where we need to.
“Now, in the current environment, with the different pressures and constraints on monetary policy, it’s just common sense to see if the current framework and its interaction with the macroprudential policy is working well so we can make sure that we have the world’s best and most effective central bank and monetary policy framework for the times we’re in and for the challenges which are coming at us down the track.”
The sentiment surrounding a review into the RBA is bipartisan, with Shadow Treasurer Angus Taylor saying, “A strong and independent Reserve Bank of Australia (RBA) is essential to Australia’s future economic prosperity.
“The RBA plays a crucial role in delivering Australia’s monetary policy. It is essential the review be independent of the political process and focused on preserving the strengths of the RBA as an institution.
“I note the Treasurer has indicated he wants this review to be bipartisan. We look forward to being engaged throughout the review process.
“The Coalition reaffirms our in-principle support for the 2-3% medium-term inflation target as the appropriate framework for achieving medium-term price stability.
“It is also important that the RBA’s capability in forecasting and guidance be part of the review.
“With rising interest rates weighing heavily on the minds of Australian families and household budgets, it is essential the RBA’s mandate remains laser-focused on its core purpose which is the stability of the currency of Australia, the maintenance of full employment and the economic prosperity and welfare of the Australian people.
“This will be central to ensuring that we have a strong, independent and capable Reserve Bank.
A review into the RBA certainly won’t help stem current levels of inflation, which NAB chief executive Ross McEwan says is here to stay.
“Data that we operate now has certainly changed from 20 years ago and the last six to 12 months have shown us that we are in a difficult period of having high inflation that we have not seen for decades,” McEwan said.
“So, I think the review is very timely as it is opening up all aspects including inflation.
“I actually have a feeling that we’re probably coming down on this economy too hard, just the capacity outside where we are protected next year has strong GDP growth, probably around that 1.8%, saying the biggest problem is that every business I talked to cannot get labour.
“It is tough to like what is going on but I think there are some countries like Singapore, UK, a lot of Europe and the US that are having more difficulties than we are.
“We need more skilled labour, we need to actually train and develop for the next few segments. That’s across all of our organisations and we need to work through these issues.
“The review should have a conversation about what type of labour we bring into Australia because it’s not just skilled labour. We’re struggling.”
Here’s a look at some of the top small cap stories of the day.
Kaiser Reef exceeds expectations with maiden 186,656-ounce gold resource at Maldon, shares jump
Kaiser Reef Ltd (ASX:KAU, ASX:) traded higher after notching up a maiden mineral resource estimate (MRE) of 1.2 million tonnes at 4.4 g/t gold for 186,656 ounces at the Maldon Gold Project within the Victorian Goldfields.
Euro Manganese joins Global Battery Alliance to help establish sustainable EV battery value chain
Euro Manganese Inc (ASX:EMN, TSX-V:EMN, OTCQX:EUMNF) has become a member of the Global Battery Alliance (GBA), a partnership of leading battery-related companies, governments, academics and non-government organisations (NGOs) that has mobilised to ensure that EV battery production not only supports green energy but also safeguards human rights and promotes environmental sustainability.
Bellevue Gold awards process plant EPC contract to GR Engineering
“GRES knows the Bellevue project well and they are extremely experienced in designing and building gold plants in WA. Their readiness to accept Bellevue shares as part-payment is a strong vote of confidence in our project and the outlook for our company,” said Bellevue Gold Ltd (ASX:BGL) MD Steve Parsons.
Blue Star Helium’s Sammons 315310C well expected to spud next week
Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF)’s Sammons 315310C well pad in Colorado has been constructed and the well is expected to spud next week.
Arafura Resources in offtake talks with GE Renewable Energy
Arafura Resources Ltd (ASX:ARU)‘s Gavin Lockyer speaks with Proactive’s Elisha Newell about the discussions it is currently having with GE Renewable Energy to supply neodymium and praseodymium (NdPr) from the company’s Nolans Project in the Northern Territory for the manufacture of GE’s offshore wind turbines and energy transition.
On your six
Did you know: Australia’s mid-1800s gold rushes weren’t the first – gold has been mined by Indigenous cultures for millennia
Our land abounds: Australia known for mining
We may be girt by sea, but the grit and dirt beneath our feet contains some pretty hefty quantities of valuable minerals.
The one for good luck
ClearVue expands footprint in North America
ClearVue Technologies Ltd (ASX:CPV, OTCQB:CVUEF)’s Earle Harper speaks with Proactive’s Elisha Newell about how this expanding building materials company is growing its US footprint.
