Australian shares struggle for direction despite US data cheer

Allkem

11/05/2023 02:42

May 11 (Reuters) - Australian shares flitted between red
and green on Thursday, as losses in financials countered
strength in mining and energy stocks, while the U.S. inflation
print spurred hopes the Federal Reserve's interest rate-hiking
cycle is close to an end.  
    The S&P/ASX 200 index  .AXJO  was flat at 7250.9 points by
1233 GMT. The benchmark closed 0.1% lower on Wednesday.
    Interest rate-sensitive financial stocks  .AXFJ  slipped as
much as 0.6%, losing for a second straight session after a
three-day winning streak. 
    Among the country's top banks, National Australia Bank
 NAB.AX  and Westpac Banking Corp  WBC.AX  gave up 0.1% and
3.3%, respectively. 
    The U.S. consumer price index rose 0.4% after gaining 0.1%
in March. Although in the 12 months through to April, CPI
increased 4.9%, less than the 5% year-on-year gain in March,
indicating Fed might be succeeding in controlling inflation.
 MKTS/GLOB  
    Domestic miners  .AXMM  advanced 0.3% to gain for the first
time in three sessions. 
    Allkem Ltd  AKE.AX  topped the charts with a 14.3% jump,
hitting its highest level since November 2022, after the lithium
miner disclosed plans to merge with U.S.-based Livent Corp
 LTHM.N  in an all-stock deal valued at $10.6 billion. 
   St Barbara  SBM.AX  advanced as much as 9% after the company
received a revised offer for its Leonara assets in Western
Australia from Silver Lake Resources  SLR.AX . 
    Also leading the sub-index, Lake Resources  LKE.AX  and
Pilbara Minerals  PLS.AX  advanced 10.8% and 6.2%, respectively.
    Energy stocks  .AXEJ  added 0.2% even as oil prices ticked
up overnight, with sector majors Woodside Energy  WDS.AX  and
Santos  STO.AX  gaining 0.2% each.  O/R 
    Separately, shares in James Hardie  JHX.AX  slipped 0.4%
after the top fibre cement maker revealed proceedings brought
against it alleging that the company breached some disclosure
obligations. 
    New Zealand's benchmark S&P/NZX 50 index  .NZ50  slipped
0.7% at 11909.9 points. 
    
             

 (Reporting by Roushni Nair in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((Roushni.Nair@thomsonreuters.com))
 
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