In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a sold gain. At the time of writing, the benchmark index is up 0.5% to 7,764.4 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are climbing:

BHP Group Ltd (ASX: BHP)

The BHP Group share price is up 2.5% to $44.21. This appears to have been driven by news that its takeover target Anglo American (LSE: AAL) has announced a divestment plan. This plan will see the miner offload its coal, platinum, and nickel assets in order to focus on its potash, copper, and iron ore assets. The market appears to believe this could be a sign that the takeover won’t happen and that Anglo American intends to go it alone after rejecting two bids from BHP. The market has never been overly sure about the deal and appears to be responding positively to the prospect of this being the end of the matter.

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is up 2% to $5.78. This follows news that the uranium developer has uncovered copper during its drilling campaign at the Honeymoon project. Given that uranium and copper are the two hottest commodities in 2024, the market appears excited by the news. It is worth noting that Boss Energy intends to let First Quantum Minerals (TSE: FM) do the hard work for it with a farm-in agreement. This “enables Boss to remain fully-focused on its core business of uranium exploration, development and production while having exposure at no cost to the significant potential of a base metals exploration program led by a global major.”

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s Pizza share price is up 2% to $38.76. A number of consumer stocks are rising today in response to the Federal Budget. Investors may believe that the government’s plans will put more disposable income in the pockets of consumers. This could give this pizza chain operator’s sales a boost in Australia.

Renascor Resources Ltd (ASX: RNU)

The Renascor Resources share price is up 20% to 12 cents. The market appears to believe that the company’s proposed vertically integrated Battery Anode Material Manufacturing Project in South Australia could benefit from the Federal Budget. The Government is investing $8.8 billion over the decade to strengthen critical minerals supply chains. This Budget establishes a production tax incentive for processing and refining critical minerals at an estimated cost of $7 billion over the decade.

The post Why BHP, Boss Energy, Domino’s, and Renescor shares are racing higher appeared first on The Motley Fool Australia.

More reading

• 3 ASX All Ords shares going gangbusters on Wednesday
• ASX 200 uranium stock Boss Energy surges on copper news
• What the federal budget means for interest rates and ASX shares
• Buying BHP shares? Here’s what’s happening with the Anglo American takeover
• Buy BHP and these ASX dividend stocks

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This Wednesday is shaping up to be a very pleasant one for the All Ordinaries Index (ASX: XAO) and most ASX All Ords shares. At the present time, the All Ords has gained a rosy 0.45%. But let’s talk about what’s going on with the Novonix Ltd (ASX: NVX) share price.

Novonix shares are on fire today. The ASX All Ords battery technology and graphite stock closed at 82 cents a share yesterday. But this morning, those same shares opened at 85 cents a pop before rising to 86 cents at the time of writing. That’s a gain worth a healthy 4.48%.

This happy day for the Novonix share price comes after the company made a major announcement to investors this morning before market open via an ASX filing.

This filing revealed Novonix has signed a “non-exclusive testing and development agreement (TDA)” with PowerCo SE. PowerCo is a battery cell company owned by the German vehicle manufacturing giant Volkswagen Group.

Here’s some of what the announcement told investors:

The work to be conducted under the TDA will include NOVONIX developing, testing, and analyzing synthetic graphite anode materials tailored to meet PowerCo’s requirements and upon successful completion of certain development work under the TDA, NOVONIX and PowerCo may enter into a supply agreement for developed products with details to be determined at that time…

The TDA could lead to future collaboration with NOVONIX with a focus on requirements of the St. Thomas facility and aims to bolster the development of the North American battery materials supply chain.

Novonix also reiterated that its North American Riverside facility is still scheduled to commence synthetic graphite (a key battery ingredient) production by the end of 2024. The company is planning to scale production up to 20,000 tonnes per annum in time. Novonix also stated that it “plans to further expand capacity to a total of 150,000 tonnes per annum of production capacity in North America”.

Novonix share price snapshot

Judging from today’s share price reaction, it seems investors are rather excited about today’s Powerco announcement. This lift in the Novonix share price extends a stellar year for the company over 2024. Novonix shares are now up an impressive 16.2% year to date.

However, the company is still down by almost 15% over the past 12 months. It also remains a very long way from the all-time highs of almost $11 a share that we saw back in late 2021.

At the current Novonix share price, this All Ords battery stock has a market capitalisation of $403.4 million.

The post Novonix share price rockets on new Volkswagen deal appeared first on The Motley Fool Australia.

More reading

• Why Fletcher Building, Healius, Iperionx, and Iress shares are sinking today
• 3 ASX All Ords shares going gangbusters on Wednesday
• Why BHP, Boss Energy, Domino’s, and Renescor shares are racing higher
• ASX 200 uranium stock Boss Energy surges on copper news
• Why is the Arafura share price surging 11% today?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Volkswagen Ag. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) uranium stock Boss Energy Ltd (ASX: BOE) is charging higher today.

The Boss Energy share price closed yesterday at $5.66. In earlier trade shares were swapping hands for $5.79 apiece, up 2.3%. At the time of writing shares are trading for $5.75 apiece, up 1.6%.

For some context, the ASX 200 is up 0.5% at this same time.

The ASX 200 uranium stock is, obviously, best known for its uranium assets at its Honeymoon project in South Australia.

Boss Energy produced its first drum of uranium at Honeymoon in April.

The company recently said it’s on track to ramp up to a steady-state production rate of 2.45 million pounds of U3O8 per year.

However, it’s not uranium that’s got investors bidding up the ASX 200 uranium stock today.

It’s copper.

Here’s why.

ASX 200 uranium stock strikes copper

This morning Boss Energy announced that Canadian-listed First Quantum Minerals Ltd (TSE: FM) maiden diamond drilling program at Honeymoon successfully intersected “basement-hosted base metal mineralisation”.

The copper and gold intersections came in below the Yarramba Palaeovalley, which holds the uranium.

The ASX 200 uranium stock entered into an earn-in exploration agreement with First Quantum back in February 2022.

At the time, management stated:

The agreement enables Boss to remain fully focused on its core business of uranium exploration, development and production while having exposure at no cost to the significant potential associated with a base and precious metals exploration program led by a global major.

That exposure looks to be paying off.

First assay results included:

• 16 metres at 0.27% copper and 0.1 grams of gold per tonne at 288 metres
• 47 metres at 0.19% Cu from 404 metres, with a number of narrower zones of 5 metres to 6 metres containing up to 0.5% Cu and 0.12g/t Au

Under the existing agreement, First Quantum has the right to earn a 51% interest in Honeymoon’s base metal endowment by spending $6 million on exploration and a further 24% interest by sole-funding all base metals expenditure up to a decision to mine.

Following receipt of these results, First Quantum said it will continue to fund further copper and gold exploration at Honeymoon.

However, management noted:

Boss retains the sole right to explore for and exploit all uranium discoveries on the JV Project (being greater than 50% of the in-situ metal value being uranium). Boss will have a first right of offer in respect of any uranium discoveries made by First Quantum within the Curnamona craton of South Australia.

With copper, gold and uranium prices all surging over the past year, Boss Energy’s Honeymoon project could prove to be more profitable than expected.

With today’s intraday gain factored in, the ASX 200 uranium stock is up 110% since this time last year.

The post ASX 200 uranium stock Boss Energy surges on copper news appeared first on The Motley Fool Australia.

More reading

• Why Boss Energy, Meteoric Resources, Pantoro, and Worley shares are falling today
• Will ASX uranium shares run higher on this ‘historic’ supply ban?
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• How to invest in uranium on the ASX
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Arafura Rare Earths Ltd (ASX: ARU) share price is having a strong session.

In fact, at one stage today, the rare earths developer’s shares were up as much as 11% to 20.5 cents.

Its shares have eased back a touch since then but remain up 5.5% in afternoon trade.

Why is the Arafura share price zooming higher?

Investors have been fighting to get hold of the company’s shares today in response to the Federal Budget.

The market appears to believe that Arafura Rare Earths will benefit from the government’s target of making Australia a renewable energy superpower. This target includes the Government investing almost $9 billion over the decade into critical minerals supply chains. The Budget explains:

The Government is investing $8.8 billion over the decade to add more value to our resources and strengthen critical minerals supply chains. This Budget establishes a production tax incentive for processing and refining critical minerals at an estimated cost of $7 billion over the decade. It commits up to $1.2 billion in strategic critical minerals projects through the Critical Minerals Facility and the Northern Australia Infrastructure Facility, and pre‑feasibility studies for common user precincts.

Arafura Rare Earths is developing the Nolans Project, which is 135 kilometres north of Alice Springs in Australia’s Northern Territory.

The company highlights that the cornerstone of the project is one of the world’s largest undeveloped Neodymium and Praesodymium (NdPr) resources. With an initial mine life of 38 years and a valuable phosphoric acid by-product, it believes that Nolans will be a long life, low cost operation producing NdPr oxide. This is a critical component of rapidly growing global demand for electric vehicles and renewable energy technology.

Arafura Rare Earths may not be commencing production any time soon, but it already has binding offtake agreements in place. This includes with automakers Hyundai and Kia, and Siemens Gamesa Renewable Energy. In addition, the company has a memorandum of understanding in place with giant General Electric (NYSE: GE), and is progressing advanced negotiations with several prospective offtake partners.

The company has already been a winner from previous government funding. Earlier this year, it secured conditional Commonwealth Government approval for a debt financing package of US$533 million to progress the Nolans Project.

Commenting on that approval, CEO, Darryl Cuzzubbo, said:

Securing debt facilities of US$533 million from EFA and NAIF is a critical achievement for the Nolans Project and signifies its economic importance to Australia and the Northern Territory. “Gaining this level of support from the Commonwealth Government is a critical milestone in becoming a globally significant producer of NdPr, a product essential for electric vehicle and wind turbine manufacturers to achieve future growth targets as part of the energy transition.

Arafura Rare Earths has yet to comment on the Federal Budget.

The post Why is the Arafura share price surging 11% today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 uranium stock Boss Energy surges on copper news
• What the federal budget means for interest rates and ASX shares
• Why this could be the best ASX 200 consumer staples stock to buy in May
• With $1,000 to invest, should I buy ASX growth stocks or income shares?
• Guess which ASX gold stock just rocketed 92% on this ‘outstanding’ new discovery

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX shares are broadly enjoying a strong run on Wednesday on the heels of the Federal government’s budget announcement.

In early afternoon trade today, the S&P/ASX 200 Index (ASX: XJO) is up 0.5%.

Not surprisingly, given the multi-billion dollars of new support for ASX shares focused on renewable energy and critical minerals, the S&P/ASX 300 Metals & Mining Index (ASX: XMM) is outperforming, up 1.4%.

With the budget potentially fuelling inflation and pushing interest rate relief from the RBA further into the future, ASX financial shares are among the weaker performers, with the S&P/ASX 200 Financials Index (ASX: XFJ) up just under 0.1% at this same time.

Here’s what’s happening.

Will the budget fuel inflation and push out interest rate cuts?

Investors in ASX shares may wish to position their portfolios for higher rates for longer.

With the Federal budget adding an additional $24 billion to the Aussie economy over the next four years, inflation could rekindle.

Treasurer Jim Chalmers has crafted the budget with hopes it will help reduce price rises. As such, Aussie households will receive energy relief in the form of a $300 power bill rebate, to be delivered quarterly. This comes atop the next stage of tax cuts.

“Just as every Australian taxpayer will get a tax cut, every Australian household will get energy price relief,” Chalmers said.

However, the budget itself assumes the RBA will only begin to “gradually ease” the official cash rate from the current 4.35% “around the middle of 2025”. The government expects the cash rate to still be at 3.6% in mid-2026.

But Judo Bank economic advisor Warren Hogan has a far more hawkish outlook, believing investors in ASX shares should prepare for further interest rate hikes rather than cuts in the wake of the Federal budget.

According to Hogan (quoted by Sky News):

I do think they have shown some restraint. I think many Australian governments in the past might have spent more like $20 billion on new measures, but they’ve only done $10 billion. That might mean we only need one or two rate hikes, but it doesn’t change the underlying story about the economy.

I think there is a very strong chance the RBA might have to raise rates again.

AMP’s chief economist Shane Oliver noted that, “The cost-of-living measures will help lower measured inflation. But the new stimulus risks boosting demand.”

Oliver added:

Government support for high wage increases for some sectors risks adding to wages growth given the flow on and influencing effects at a time when wages growth is already at its maximum level consistent with the inflation target. All of which risks making the RBA’s job harder.

Putting all the Federal budget pieces together, Oliver said, “The net effect adds to the risk of higher for longer interest rates but is probably not enough to change our forecast for a rate cut later this year.”

As for the ASX shares that stand to benefit…

What the budget means for ASX shares

ASX shares in the critical minerals space and those involved in green hydrogen and renewables could be set to benefit from the government’s $22.7 billion Future Made in Australia (FMIA) plan.

FMIA will provide $13.7 billion in tax incentives for green hydrogen and processed critical mineral production. There’s also $1.7 billion to drive innovation in producing green iron and other metals along with low emissions fuels.

The plan includes $13.7bn in production tax incentives for green hydrogen and processed critical minerals and a $1.7bn innovation fund for priority sectors including green metals and “low carbon fuels”.

ASX shares that could potentially benefit from the billions in new funds due to their exposure to subsidised metals include Fortescue Metals Group Ltd (ASX: FMG), BHP Group Ltd (ASX: BHP), Pilbara Minerals Ltd (ASX: PLS), IGO Ltd (ASX: IGO) and Liontown Resources Ltd (ASX: LTR).

The tax cuts and energy relief will also put more money back into consumers’ pockets.

That should offer some welcome tailwinds for ASX shares in the retail space such as JB Hi-Fi Ltd (ASX: JBH) and Harvey Norman Holdings Ltd (ASX: HVN).

And ASX shares like Domino’s Pizza Enterprises Ltd (ASX: DMP) could enjoy a lift as lower-income households reopen their pocketbooks.

Commenting on what the overall impact of the budget will be for ASX shares, AMP’s Oliver said, “The budget is positive for spending and hence retail shares, but this may be offset by higher than otherwise rates. Some manufacturers may benefit from FMIA.”

The post What the federal budget means for interest rates and ASX shares appeared first on The Motley Fool Australia.

More reading

• Buying BHP shares? Here’s what’s happening with the Anglo American takeover
• 5 things to watch on the ASX 200 on Wednesday
• Buy BHP and these ASX dividend stocks
• Why more ASX mining shares could soon turn to takeover bids
• Should you buy Fortescue shares for that fat 8% dividend yield?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I love a good ASX 200 consumer staples stock investment. The consumer staples sector can offer investors a few unique traits that are invaluable in a stock portfolio. Those include defensive revenue streams, non-cyclical and inflation-resistant earnings and steady dividends.

I own several consumer staples stocks in my own share portfolio. But there is one stock that I don’t yet own from this sector that I think could be the best one to buy this May.

It is none other than ASX 200 supermarket operator Woolworths Group Ltd (ASX: WOW).

I have long shunned Woolworths shares as a good investment. This has been largely due to concerns about a relatively high price-to-earnings (P/E) ratio valuation (and correspondingly low dividend yield) compared to the company’s arch-rival Coles Group Ltd (ASX: COL).

Put simply, I’ve always regarded Woolworths as a superior investment to Coles, but Coles as the better buy thanks to its far cheaper valuation.

That is no longer the case. It has been one of the roughest years for the Woolworths share price that we’ve seen for a very long time in 2024. Year to date, this famous Australian company is currently down a nasty 16.64%. That’s even after today’s lift of 0.45% up to $31.27 a share (at the time of writing).

Things look even worse for Wooleis over the past 12 months, with the company nursing a loss of 19.5% over this period.

The ASX 200 consumer staples stock has also lost a chunky 25.5% or so since its last all-time high of over $42 that we saw back in 2021. Check that all out for yourself below:

Why is this ASX 200 consumer staples stock looking so cheap?

There’s no doubt these falls have been painful for existing Woolworths shareholders to bear. But even so, it has given new investors a potentially lucrative entry point into this company that hasn’t been previously available.

To illustrate, around this time last year, we conducted an in-depth comparison of Woolworths and Coles as an investment. At the time, Woolworths shares were trading on a trailing dividend yield of 2.56%. That compared to a 3.62% yield on Coles shares.

Today, Woolies stock has a dividend yield of 3.36%, an increase of 31.2%.

And, as we looked at last week, there are now only a couple of points between both companies’ P/E ratios on one current measure.

Now, Woolworths shares haven’t fallen so substantially over the past 12 months for no reason. The company didn’t exactly pull off a smooth leadership transition when its CEO Bradford Banducci announced his sudden resignation earlier this year. And Woolies’ recent results point to the company losing market share to Coles.

Even so, this ASX 200 consumer staples stock remains the dominant player in the Australian grocery and supermarket spaces, commanding the highest market share by some distance.

I don’t think there’s much evidence that Woolworths is locked in a permanent tailspin against Coles. Thanks to its leading industry position and strong brand power, I expect the company to bounce back eventually.

As such, I think this company’s shares are a bargain on the ASX today, making Woolworths the ASX 200 consumer staples stock to buy this May.

The post Why this could be the best ASX 200 consumer staples stock to buy in May appeared first on The Motley Fool Australia.

More reading

• 2 of the best ASX 200 dividend giants to buy in May
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• How to help recession-proof your ASX share portfolio in May 2024
• Coles share price holds firm while Woolworths tumbles 18% in 2024. Time to buy?
• 3 ASX shares that look way too cheap to ignore right now

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.