Macquarie’s top ASX lithium pick + Is the UK in even more trouble?
Welcome to Charts and Caffeine - Livewire's pre-market open news and analysis wrap. We'll get you across the overnight session and share our best insights to get you better set for the investing day ahead.
- S&P 500 - 3,745 (-1.02%)
- NASDAQ - 11,486 (-0.76%)
- CBOE VIX - 30.43
- USD INDEX - 112.21
- US 10YR - 3.824%
- FTSE 100 - 6,997 (-0.78%)
- STOXX 600 - 396.36 (-0.64%)
- UK 10YR - 4.234%
- GOLD - US$1714/oz
- WTI CRUDE - US$89/bbl
It hasn't been a good few weeks in the the United Kingdom. After the Truss government announced a bevy of tax cuts, the Pound crashed, the market sold off and Pension funds had to be essentially bailed out by the Bank of England, which was forced to resume quantitative easing in order to artificially depress bond yields.
So, what do you do when your house is on fire? Leave. And that's what investors have done, pulling 4.7 billion pounds from UK-domiciled equity funds. Ouch.
It's no surprise, then, that this kind of low-brow humour is doing the rounds on Twitter.
STOCKS TO WATCH
It's all about Lithium, today. Safe to say, it remains a hot sector.
Citi remain bullish on the sector in general, forecasting demand to double every 2-3 year over the coming decade.
"We see lithium prices continuing to trade at elevated levels, producer margins remaining elevated, and volumes rising. If there is a pullback, we expect it to be relatively shallow and not last longer than 3-6 months."
At the sector level, Macquarie maintain an Outperform rating on Core Lithium ASX: CXO after the company announced drilling results from the final three holes of a 12-hole drilling program at BP33, an operation on the Cox Peninsula.
"The latest assay results at BP33 are encouraging – they highlight resource extension at depth."
They go on: "After the completion of the recent equity raising, CXO is accelerating its organic growth, including the BP33 development and exploration program."
David Thornton wrote today's report. Hans is back on Monday.
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Livewire and Market Index's pre-opening bell news and analysis wrap. Available weekday mornings and written by Chris Conway, Kerry Sun, and Hans Lee.
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