All sectors are up except Consumer Discretionary, sparked by the US debt ceiling deal.
Overall, at noon, the S&P/ASX 200 is 1.01 per cent higher at 7,227.30.
Oil prices rose as US President Joe Biden and House Speaker Kevin McCarthy reached a tentative deal on the US debt ceiling, potentially preventing a default, while West Texas Intermediate surpassed $73 a barrel. However, oil’s overall performance has been impacted by China’s slow economic recovery, the Federal Reserve’s monetary tightening, resilient Russian supply, and conflicting statements from Saudi Arabia and Russia regarding potential changes to supply policy by OPEC+.
The SPI futures are pointing to a rise of 66 points.
Best and worst performers
The best-performing sector is REITs, up 1.76 per cent. The worst-performing sector is Consumer Discretionary, down 0.57 per cent.
The best-performing large cap is Lynas Rare Earths (ASX:LYC), trading 3.53 per cent higher at $7.63. It is followed by shares in Liontown Resources (ASX:LTR) and Pilbara Minerals (ASX:PLS).
The worst-performing large cap is IDP Education (ASX:IEL), trading 14.1 per cent lower at $22.18. It is followed by shares in ALS (ASX:ALQ) and Yancoal Australia (ASX:YAL).
Asian news
Asia-Pacific markets are largely higher after U.S President Joe Biden and congressional leaders reached a tentative deal to raise the debt ceiling over the weekend. The bill is expected to be voted on later this week.
In Japan, the Nikkei 225 continued to push 33-year highs to trade at the highest levels since July 1990 as it jumped 1.54 per cent, with the Topix also gaining 1.11 per cent.
In Australia, the S&P/ASX 200 climbed 0.98 per cent, while South Korean markets are closed Monday for a holiday.
Hong Kong’s Hang Seng index continued sliding to new lows this year, falling 0.12 per cent. Mainland Chinese markets are more mixed, with the Shanghai Composite up 0.23 per cent and the Shenzhen Component down 0.16 per cent.
Company news
Empire Energy (ASX:EEG) has announced a major Beetaloo resource upgrade. In response, MD Alex Underwood stated, “The volumes delineated in EP187 represent a nationally significant resource of low CO2 gas.” Shares are trading 2.7 per cent higher at 19 cents.
Kula Gold (ASX:KGD) reports progress on potential lithium bearing pegmatites at the recently acquired Kirup Project. Kula’s CEO Ric Dawson said, “The Kirup Project is progressing to drill programmes on these new prospects.” Shares are trading 28.57 per cent higher at 1.8 cents.
WIA Gold (ASX:WIA) has intercepted thick, high-grade gold intercepts at their Kokoseb deposit. Executive Chairman, Andrew Pardey, commented: “[One of our holes] confirms that high-grade mineralisation extends to almost 200m below the existing resource.” Shares are trading 27.6 per cent higher at 3.7 cents.
Commodities and the dollar
Gold is trading at US$1961.00 an ounce.
Iron ore is 4.4 per cent higher at US$102.45 a tonne.
Iron ore futures are pointing to a 3.06 per cent rise.
One Australian dollar is buying 65.40 US cents.