PEAK ASSET: ARVO WRAP 7 January: ASX rises as inflation softens, miners rally | Gold steadies as traders look past geopolitical risk to US data | Debt Cleared, Askari Bets Big on Nejo — Ethiopia’s Gold-Copper Prospect |

The rare earths sector was getting some love today after China banned exports of dual-use items, including certain rare earth elements essential for making drones and chips, to Japan (dual-use items are goods with both civilian and military applications). 

Lynas was the stand-out, up 14 per cent to $15.06.

Across Markets…

The Australian sharemarket rose on Wednesday, as a softer-than-expected inflation report and surging metal prices bolstered the mining sector.

The benchmark S&P/ASX 200 Index closed 12.8 points higher, or 0.2 per cent, to 8695.60 after the monthly consumer price index unexpectedly cooled to 3.4 per cent in November.

That result was better than many had feared, helping to ease some fears about an imminent interest rate hike.

Bond traders tempered their rate bets and are now pricing in a 32 per cent chance that the Reserve Bank of Australia will lift the cash rate to 3.85 per cent in February versus 37 per cent before the data release.

Markets are still fully priced for a move higher by June.

Capital Economics is, however, sticking to its views of a higher borrowing costs next month.

“It’s probably still too strong for the RBA’s liking,” said Marcel Thieliant, head of Asia Pacific at Capital Economics. “With little spare capacity left in the economy and the labour market still tight, there’s a strong case for the RBA to start tightening policy again before long.”

On the ASX, eight of the 11 sectors finished in positive territory, led by the interest-rate-sensitive technology sector and mining stocks.

The mining sector climbed after another record rally in London base metals overnight on concerns of tighter supply. Copper crossed above $US13,300 a tonne for the first time, and nickel soared 7 per cent.

That helped lift the mining giants, with BHP rising 1 per cent to $47.70, while Rio Tinto 1.6 per cent to $154.73, extending Tuesday’s rally. Great Southern Copper leapt 4.4 per cent to $3.34.

Gold miners were also on a tear after the precious metal climbed above $US4495 an ounce. Newmont gained 2.8 per cent to $155.50 and Evolution Mining advanced 1.3 per cent to $12.99. Capricorn Metals rallied 1.9 per cent to $14.84 on news it was on track to produce at the upper end of its FY26 guidance.

The metals’ surge also propelled the Australian dollar to a 14-month high of US67.52¢. The Aussie is sensitive to commodity prices because Australia is a major global exporter of natural resources, including iron ore, gold and copper.

Source: AFR