• Record closes for key US and European share indices will provide support for the Aussie market.
  • Today’s Announcements: Vulcan Energy Resources (VUL) has been granted 5 further exploration licenses in Germany

Momentum from the Dow Jones index and S&P reaching record highs to potentially support the ASX

  • The ASX today may carry momentum seen in the US and European markets overnight. In the US, Apple hit US$3 trillion in market capitalisation, buoying investor sentiment. The US Dow Jones index closed up 247 points or 0.7 per cent to record highs. The S&P 500 index added 30 points or 0.6 per cent to record highs. And the Nasdaq index gained 188 points or 1.2 per cent.
  • In commodities markets, the Brent crude oil price gained US$1.20 or 1.5 per cent to US$78.98 a barrel and the US Nymex crude price added US87 cents or 1.2 per cent to US$76.08 a barrel. Oil prices rose on Monday on hopes for a demand recovery in 2022, as well as near-term supply tightness. The increase in oil price may support the energy sector, and Aussie-listed energy companies such as Woodside Petroleum (WPL) and Santos (STO).
  • Bullion lost ground, with the gold futures price losing US$28.50 or 1.6 per cent to US$1,800.10 an ounce. Spot gold was trading near US$1,802 an ounce at the US close. The fall in the gold price could weigh on shares of Aussie gold miners.
  • Iron ore added US50 cents or 0.4 per cent to US$119.50 a tonne overnight. London-listed iron ore miners could not respond to the price lift as the UK sharemarket was closed on Monday. Nonetheless, the gain in iron ore could support the materials sector.

Vulcan Energy has been granted further licenses, significantly growing their Zero Carbon Lithium project. 

  • Vulcan Energy Resources (VUL) has been granted 5 new exploration licenses for geothermal energy and lithium exploration in Germany. The new exploration licenses offer VUL with 325km2 of land that VUL considers is prospective for deep geothermal and lithium brine. As such, this will allow VUL to scale up their Zero Carbon Lithium Project and meet the strong demand they received from lithium chemical and renewable heating customers.

Originally published by CommSec

Authors: Divik Nigam, Associate Equity Market Analyst and Craig James, Chief Economist.