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Highlights
- ASX poised for a higher open following steady inflation news from the US.
- Orica Ltd reports robust financials with significant earnings growth.
- De Grey Mining Ltd sees increase in Hemi Gold Project resource estimate.
The Australian stock market is set for a positive start, with the ASX200 index projected to rise 0.46% in the wake of Wall Street’s mixed performance. This reaction comes on the heels of the latest inflation data from the US, which matched market expectations and reinforced the outlook for a steady economic environment. The US Consumer Price Index recorded a 2.6% annual rise, with core inflation at 3.3%, aligning closely with analyst forecasts. This steady inflation data has fueled speculation of a potential Federal Reserve rate adjustment in December, with CME FedWatch indicating an 80% probability of a rate cut.
In the mining and resources sector, Orica Ltd (ASX:ORI), a prominent player in mining services and infrastructure solutions, disclosed strong fiscal year results. For the 2024 fiscal year, Orica reported a profit of $525 million, accompanied by earnings before interest and tax (EBIT) of $806 million, marking a 15% increase over the previous year. The company also announced an unfranked final dividend of 28 cents per share, underscoring a stable performance in a challenging market. Orica's resilience and strategic growth reflect the strength of Australia's mining sector, which remains a critical driver of the national economy.
Meanwhile, De Grey Mining Ltd (ASX:DEG) provided an update on its Hemi Gold Project in Western Australia. The company’s recent drilling efforts have increased the project’s mineral resource estimate (MRE) by 0.7 million ounces, bringing the total estimate to 11.2 million ounces of gold. This resource expansion highlights De Grey’s commitment to enhancing project value and reinforces the significance of the Hemi site as a substantial asset in Australia's mining landscape.
In commodity markets, iron ore prices on the Singapore Exchange were reported at $102.96 per metric ton, while gold held firm at $2,576 per ounce, reflecting robust demand. Brent crude oil is trading at $71.92 per barrel, and natural gas is priced at $2.99 per gigajoule, indicating stability across energy resources. The Australian dollar, meanwhile, hovers just under 65 US cents, showing slight resilience amidst fluctuating currency trends.
As the ASX200 prepares for a positive opening, insights from the mining and commodity sectors, coupled with stable economic indicators from the US, set a constructive tone for Australian stocks. The steady performance across sectors like mining and infrastructure showcases the economic stability and growth potential within Australia's financial markets, paving the way for a promising trading session.
