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S&P/ASX 200 (INDEXASX:XJO) rallies on Chinese iron ore demand

The S&P/ASX 200 (INDEXASX: XJO) delivered another positive day, gaining 0.3 per cent ahead of key US inflation data.

Once again, interest rate sensitive sectors were hardest hit, with the technology sector falling 1.3 per cent.

Healthcare and materials were the standouts, gaining 1.1 and 0.9 per cent with respiratory product provider Resmed CDI (ASX: RMD) adding 2.3 per cent for the day.

It was a similar story for Ansell Ltd (ASX: ANN) which gained another 3.4 per cent a day after news of its successful capital raising for a major acquisition.

The materials sector was the key driver on the day, with BHP Group Ltd (ASX: BHP) adding 0.8 and Rio Tinto Ltd (ASX: RIO) 1.9 per cent as stock piles in Chinese steelmaking ports continued to fall, offering hope of a surge in demand, and supporting prices in the short-term.

Bad news continues for Dubber

The bad news continued at halted tech firm Dubber Corporation Ltd (ASX: DUB) with the Dubber sacking it’s CEO amid an investigation that has seen travel restrictions placed after the loss of some $25 million in company cash. Dubber announced a capital raising at just 5 cents per share, with $3.1 million made via a private placement and a further $20.9 million to existing shareholders.

Dubber share price

Perseus Mining Ltd (ASX: PRU) fell 2.4 per cent after Silvercorp Metals Inc (NYSEAMERICAN: SVM) agreed to the groups takeover bid for the remaining 15 per cent of Orecorp Ltd (ASX: ORR).

In positive signs, the Reserve Bank of New Zealand has kept rates on hold once again.

Global markets fall on hotter than expected inflation data

The Dow Jones Industrial Average (INDEXDJX: .DJI) fell by more than 400 points, dragging the index down 1.1 per cent, as did the S&P 500 (INDEXSP: .INX) and Nasdaq Composite (INDEXNASDAQ: .IXIC), which were 1 and 0.8 per cent lower.

It was bad news from the latest inflation data which showed that prices were 3.8 per cent higher than the prior year, the same rate of growth as the prior month. The news led ex Chair Larry Summers to suggest investors must consider the possibility that the next rate move would be higher.

The likes of NVIDIA Corp (NASDAQ: NVDA) still gained 2 per cent, despite Meta Platforms Inc (NASDAQ: META) announcing they were releasing their own homegrown chips to power there expanding AI program.

Shares in Costco Wholesale Corporation (NASDAQ: COST) were slightly higher as the company reported a 9.4 per cent increase in sales, with more significant 28 per cent growth coming from e-commerce.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

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At the time of publishing, the author or their clients may have a financial interest in some of companies or securities mentioned.

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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