Markets at a glance 5 November
Leah Gibbons | nabtrade
Around the grounds
The S&P/ASX 200 is moderately lower with no Cup Day Cut, as the Reserve Bank of Australia warns inflation is still sticky, however is expected to slow gradually. As widely expected, the RBA kept the cash rate on hold at 4.35% and reiterated policy would need to stay restrictive until it was certain core inflation was slowing as desired, again saying it wasn’t ruling anything in or out on future policy.
On the economic outlook, the central bank’s quarterly Statement on Monetary Policy, released simultaneously with its rate call, judged demand in the economy is still exceeding supply, with forecasts for economic growth trimmed as consumers remained reluctant to spend.
The Australian dollar rose slightly on the back of the decision and statement.
Back to markets, no surprise the rate-sensitive financials are all lower in today’s trade, while the miners, energy and gold plays followed suit. Iron ore however has extended gains, up for a second straight session, underpinned by growing optimism about more stimulus from top consumer China.
In the news
Getting to the stock news of the day and Domino’s (ASX: DMP) shares are sharply lower as longstanding CEO Don Meij sets to retire after more than two decades at the helm. Mark van Dyck, London-listed food services firm Compass Group's Asia-Pacific managing director, will replace Meij effective Nov. 6. A weak trading update is also weighing on today’s trade, with the group reporting a 1.2% slip in same-store sales in the first 17 weeks of fiscal 2025.
Elsewhere, St Barbara (ASX: SBM) shares have plunged as much as 20% after the gold miner unveiled AU$100 million two-tranche placements, with an issue price of AU$0.38 per share, which is an over 17% discount to its closing price on October 31.
The company says funds raised will be used to accelerate the development schedule for its expansion project in Paua New Guinea.
Shares are up over 76% this year, including today’s moves.
Finally, in the smaller end of town, Australian listed shares of Peak Rare Earths (ASX: PEK) have slumped to touch a record low as the company receives firm commitments for AU$6 million two-tranche institutional placements, with an issue price of AU$0.10 per share, marking an over 47% discount to the stocks last closing price.
Shares are down over 65% YTD, including today’s losses.
On the flipside, Bubalus Resources (ASX: BUS) has surged as the mineral explorer gets the environmental nod to drill at its Nolan East light rare earths project. The stock is down over 24% YTD.
Going global
Rounding things out on the global stage, it’s all eyes state side ahead of the US Presidential election. The big dollar has slipped as the Trump trade unwinds and the likelihood of a Republican sweep lessens, though the race is still wafer thin. Elsewhere, the euro has gained, while both the offshore Chinese yuan and Mexican peso strengthen. Both had come under pressure in recent weeks on expectations they would be hurt by new tariffs under a Trump presidency.
US Futures are back online signalling a negative start to the Wall Street session when trade gets underway. Elsewhere On equities, Japanese stocks are higher, led by brokerage and electronics shares bolstered by hopes for strong domestic earnings.
Finally, to China, the latest Caixin PMI index showed services activity expanded at the fastest pace in three months in October, helped by early signs Beijing’s big stimulus push is helping improve business conditions. This despite the tiger economy growing at the slowest pace since early 2023 in the third quarter, with the crisis-hit property sector showing few signs of steadying.
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