US inflation came in at 3.1 per cent overnight for November, down 0.1 per cent from the 3.2 per cent read in October.
The US Federal Reserve meets tonight, and it’s still widely tipped that rates will be left unchanged at 5.25 per cent to 5.50 per cent.
Back home – as Australian inflation lags behind the USA’s – the overall mood in the room seems to be positive. The US looks set to get close towards the two per cent target in 2024.
Also today, the Albanese government’s mid-year budget review has revealed a smaller deficit than expected of only $1.1 billion, largely cut down by a withdrawal of spending commitments on key projects.
At a press conference today, Treasurer Jim Chalmers said while it’s not yet forecast, the nation is “within striking distance” of a surprise second surplus. The Albanese government delivered the first budget surplus in 15 years last financial year.
The news has taken a positive turn towards the local share market– with the ASX200 trading in the green–up nearly half a per cent in early afternoon trade.
Healthcare stocks are in the lead, while energy stocks are struggling, losing .7 of a per cent.
Air New Zealand (ASX:AIZ) has shed 1.5 per cent after adjusting its first-half earnings guidance.
The airline now anticipates earnings to be “around the lower end of its A$167.7 million to A$214.4 million range initially provided on October 12.”
It cites the reasons as softness in domestic travel demand, particularly in corporate and government travel, with late booking activity also remaining weaker compared to the previous year.
AIZ also cautioned that the June half-year will present increasing challenges.
AIZ has been trading at 60 cents.
Raiden Resources (ASX:RDN) entered into a memorandum of understanding (MOU) with First Quantum Minerals Australia (FQMA) over its Mt Sholl project in Western Australia.
Raiden will maintain its rights to gold and lithium-caesium-tantalum (LCT) over the project, with exploration continuing. FQMA will have its eyes on the nickel-copper-PGE rights of the project.
Under the agreement, First Quantum Minerals Australia will solely fund the project up to the decision to mine (DTM), while Raiden continues to hold a 30 per cent free-carried interest.
During a 12-month due diligence period, FQMA will invest in Raiden through staged investments and milestone cash payments.
RDN has been trading at 3.6 cents.
And Vulcan Energy (ASX:VUL) has taken a step forward in its quest to establish a more sustainable battery electric vehicle (BEV) supply chain in Europe by securing the go-ahead from the Landau City Council in Germany.
The green light from the council will allow Vulcan to build its Phase One Geothermal renewable energy and Lithium Extraction Plant (G-LEP) on designated land in the city’s planned commercial park.
Phase One boasts a targeted annual production capacity of 24,000 tonnes of lithium hydroxide, which is enough for roughly 500,000 battery electric vehicles.
Vulcan is targeting the first lithium production from its optimisation plants in Q1 2024 and aims to finalise Phase One financing by Q2 end.
VUL has been trading at $2.11.
