The Australian sharemarket is set to snap a seven-day losing streak as investors were relieved that RBA governor Philip Lowe doesn’t see a local recession coming.
At noon, the S&P/ASX 200 is 1.2 per cent or 75 points higher at 6,508. The SPI futures are pointing to a rise of 56 points.
The relief-rally led by eight sectors to three losers has seen banks continue their rally from Monday’s rebound. Energy, materials and the financial sectors are up by 2 to 3 per cent while healthcare, utilities and property are trading lower by under 0.9 per cent.
The best-performing stock in the ASX 200 is New Hope Corporation (ASX:NHC), trading 7.5 per cent higher at $3.45. It is followed by shares in Coronado Global Resources (ASX:CRN) and Paladin Energy (ASX:PDN).
The worst-performing stock is Zip Co (ASX:ZIP), trading 3.8 per cent lower at $0.51 amid speculation that its UK arm is under heavy scrutiny from the directors, appointing a consultant. It is followed by shares in Megaport (ASX:MP1) and Premier Investments (ASX:PMV).
Oil price rose 1 per cent, recouping some of last week’s losses as investors focused on the tight supply over concerns of a recession. Beach Energy (ASX:BPT) is up 4 per cent to $1.61, Woodside Energy (ASX:WDS) has added 2.6 per cent to $31.17 and Santos (ASX:STO) is trading 2.5 per cent higher at $7.50.
Iron ore futures are pointing to a gain of 0.1 per cent after its price fell 8 per cent, helping miners rally. BHP Group (ASX:BHP) is up 2.5 per cent to $41.25, Rio Tinto (ASX:RIO) has added 2.6 per cent while Fortescue Metals Group (ASX:FMG) is trading 2.7 higher to $17.46.
National Australia Bank (ASX:NAB) is up 2.8 per cent to $26.78, Westpac Banking Corporation (ASX:WBC) has added 2.1 per cent to $19.60 while shares in the Commonwealth Bank of Australia (ASX:CBA) is trading 1.3 per cent higher to $88.69.
Meanwhile as Germany looks to limit its use of gas for electricity production and prioritize the filling of storage facilities to make up for a drop in supply from Russia, the country is set to increase the burning of coal. Whitehaven Coal (ASX:WHC) is up 7.3 per cent to $4.87 and Terracom (ASX:TER) is trading 6.9 per cent higher to 69.5 cents.
ResApp’s (ASX:RAP) tool which aims to diagnose Covid-19 through the sound of a cough didn’t reach the sensitivity results from its pilot study in March this year. ResApp’s share price is lower because the data is below the minimum thresholds required for Pfizer’s reviewed take-over bid. As a result, the take-over price offered by Pfizer is set to be reduced to 14.6 cents from 20.7. Shares are lower by 28.6 per cent to 13 cents.
Radiopharm Theranostics (ASX:RAD), a developer of products for cancer treatment has appointed Dr Susann Brady-Kalnay to the company’s scientific advisory board. Shares are trading flat at 14 cents.
Reece Pharmaceuticals (ASX:RCE), the developer of synthetic anti-infectives, has unveiled that its 327 candidate has a good safety and tolerability profile among 10 healthy male subjects. The phase 1 clinical trial on its sixth cohort was dosed at an 80-fold increase on the first cohort’s. Share surged 23.9 per cent to 70 cents.
GrainCorp (ASX:GNC) has reaffirmed its 2022 guidance from its investor day today. Shares are up 4.5 per cent to $9.50.
Commodities and the dollar
Gold is trading at US$1841.18 an ounce.
Iron ore is 8.0 per cent lower at US$112.35 a ton.
Iron ore futures are pointing to a gain of 0.1 per cent.
One Australian dollar is buying 69.67 US cents.