The Australian sharemarket continues to overcome weak sentiment, gaining 0.9% on Tuesday to take the S&P/ASX 200 (ASX: XJO) to a two-month high. The ASX 200 is set to deliver the largest quarterly outperformance against the US S&P 500 in a decade.
The biggest contributor was the ASX commodities sector, with materials jumping 3.3% behind a 5.1% jump in BHP Group Ltd (ASX: BHP). The iron ore price has continued to defy expectations with Ukrainian disruptions filtering through most markets.
New Hope cashing in on surging coal prices
The ASX energy sector also outperformed, up 1.7% whilst technology sold off following the threat of a 50 basis point rate hike in the US.
New Hope Corproation Limited (ASX: NHC) has been among the biggest beneficiaries of the energy crisis with the coal miner jumping 8.5% after flagging expansions plans using the bumper $500 million in profits from the surging coal price.
Macquarie’s broker upgrade
A leading broker has also upgraded expectations for Macquarie Group Ltd’s (ASX: MQG) profit in 2022, expecting the group to lift revenue from energy trading and hedging by as much as $400 million; shares gained 1.3%.
Ramsay Asia under offer
Shares in Ramsay Health Care Limited (ASX: RHC) gained 1.3% as the corporate activity around the business continues to grow.
The company disclosed it had received an offer to sell its joint venture operations in Asia to its business partner, for a valuation of US$1.35 billion. Management has agreed to a period of exclusivity for further negotiations.
Boral earnings hit by floods
Boral Limited (ASX: BLD) shares fell by more than 3% after management unexpectedly delivered a small earnings downgrade.
The company reported a $23 million hit to earnings due to the impacts of extreme rainfall across NSW and Queensland. Management also highlighted the growing energy pressures with coal and diesel a key input into raw material production.
Consumer confidence slumps, Piedmont halted
Consumer confidence has tanked amid the massive surge in fuel prices, falling by 4.8% to the lowest level since before the COVID-19 vaccine was released.
Meanwhile, shares in Piedmont Lithium Ltd (ASX: PLL) were in a trading halt ahead of a planned capital raising on the US Nasdaq market.
ASX 200 today
Looking ahead, the ASX 200 is expected to open flat this morning despite a positive lead from US stock markets overnight. To find out more, check out my US stock market report.
