The S&P/ASX 200 Index (ASX: XJO) has shaken off the malaise that has been gripping it this week and posted a strong gain at this point of Wednesday’s trading session. At the time of writing, the ASX 200 has gained a very healthy 1.35%, which lifts the index to just under 7,120 points.

Hooray. Let’s now dig a little deeper into these market moves by checking out the shares currently at the top of the ASX 200’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Wednesday

Evolution Mining Ltd (ASX: EVN)

First up today is ASX 200 gold miner Evolution. So far this Wednesday, a decent 13 million Evolution shares have found a new ASX home. This looks like a consequence of the stellar day Evolution shares are enjoying today.

The gold miner, like its peers, is lifting dramatically after a strong rise in the price of gold overnight. Evolution shares are up a pleasing 7.75% so far today to $3.06 a share.

Liontown Resources Ltd (ASX: LTR)

Next up this session, we have ASX 200 lithium share Liontown Resources. A hefty 14.4 million Liontown shares have traded hands as it currently stands. With no fresh news out of Liontown so far, this volume could be in response to the significant volatility we have seen in Liontown shares on the markets.

Liontown initially started out with a bang this morning, rising as high as $1.40 a share (up almost 2.5%). But investors seem to have gotten cold feet as the day has progressed, with Liontown now down to $1.32 a share, a loss of 2.22% for the session.

Pilbara Minerals Ltd (ASX: PLS)

Third and finally today, we have another ASX 200 lithium share in Pilbara Minerals. This Wednesday has seen a notable 25.38 million Pilbara shares bought and sold on the share market. A very similar situation to Liontown seems to be at work here.

Pilbara also opened strongly this morning, shooting up to a high of $4.02 soon after market open (up more than 3%). But again, investors have had a change of heart as the day has progressed, and Pilbara shares are now down to $3.83 each, a loss of 0.91%.

The post Here are the 3 most heavily traded ASX 200 shares on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 gold shares having such a stellar run today?
• Why European Lithium, Evolution, Medadvisor, and REA shares are charging higher
• Pilbara Minerals share price leaps on positive lithium price update
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares 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 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.

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Commonwealth Bank of Australia (ASX: CBA) shares are one of the most popular investments on the ASX. But does this mean that investors should automatically put CBA shares in their share portfolios? Probably not, at least not without some further analysis.

Today, the CBA share price is sitting at $104.89 at the time of writing. That’s only a few dollars off of this ASX 200 bank’s all-time high share price.

So let’s talk about two reasons why you might want to buy CBA shares before 2023, and two reasons why you might not want to.

2 reasons to buy CBA shares right now

Quality

Commonwealth Bank is a business of unquestionable quality. Not only is it the largest bank in Australia by market capitalisation, it is also the most popular financial institution that Australians bank with. CBA has an unrivalled pedigree.

It used to be a government-owned bank before it was privatised in the 1990s, which probably lends it some goodwill from customers. This brand strength can only be a good thing for a long-term investment.

Banks are inflation-resistant investments

ASX bank shares like CBA are often touted as some of the best investments during periods of high inflation. That’s because banks can easily adapt to changing interest rates by almost instantly passing on cash rate changes to their loan products like mortgages.

Rising interest rates also tend to attract more customer deposits as investors put cash in the bank to take advantage of the higher yields on offer from savings accounts and term deposits.

All of this is good news for banks like CBA. And given right now we have some of the highest inflation figures that the economy has seen for decades as we start 2023, a bank like CBA could prove to be a prudent choice. Especially considering the hefty, fully-franked dividends that investors also tend to enjoy from bank shares, which also helps offset the effects of inflation.

2 reasons not to buy CBA shares today

The shares aren’t cheap

By most conventional metrics, CBA shares are not looking cheap right now. The bank has long been able to command a share pricing premium over the other ASX 200 banks. That’s arguably thanks to its quality (see above) and its past share price performance:

But past returns don’t guarantee future profits. Right now, Commonwealth Bank has a price-to-earnings (P/E) ratio of 19.57.

Compare that to National Australia Bank Ltd (ASX: NAB) on 14.45, Westpac Banking Corp (ASX: WBC) on 15.29 and Australia and New Zealand Banking Group Ltd (ASX: ANZ) on 10.1. We can see that CBA is certainly priced more richly than the other banks. A higher P/E ratio can give a share more room to fall in a downturn, so keep that in mind today.

Brokers rate CBA as a sell right now

It’s quite hard to find an ASX broker who is wildly bullish on the CBA share price today. As my Fool colleague James covered earlier this month, Goldman Sachs has recently rated CBA as a sell, with a 12-month share price target of $90.98.

If that turns out to be accurate (not guaranteed, of course) it would certainly not be a prudent move to buy CommBank before 2023.

Brokers at Macquarie agree. Macquarie analysts excised CBA from their model portfolios last month in favour of ANZ. Fellow broker Wilsons has also recently reduced its exposure to all ASX bank shares, including CBA.

The post 2 reasons to buy CBA shares before 2023 (and 2 reasons to sell) appeared first on The Motley Fool Australia.

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More reading

• Is there something strange going on with ANZ shares today?
• Here are the top 10 ASX 200 shares today
• I’d buy these 3 ASX 200 shares in 2023 and hold them for a decade
• Little downside protection for popular ASX 200 shares as 2023 looms a much tougher year for blue chip stocks
• Should I buy NAB shares for 2023?

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank Limited. 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 recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I’m seriously considering buying JB Hi-Fi Ltd (ASX: JBH) stock right now. Especially at the current price of $42.22 (at the time of writing).

So why JB Hi-Fi? Well, two reasons.

The first is that this is undoubtedly a top-quality ASX 200 retail share. JB stores are ubiquitous across the shopping centres of Australia. It is the go-to store for many, if not a majority, of Australians looking to buy a new TV, record, game, or home appliance.

The company has employed innovative marketing and pricing strategies for years now and has proven to be adept at moving with the times. Its decision to branch out into home appliances a few years ago proved prudent, as the market for its traditional audio and electronics shifted. Today, it sells far more TVs and fridges than CDs, records, and hi-fi equipment.

We can see JB’s quality in the numbers it posts. Over FY2022, this company managed to increase its sales by 3.5% to a record high of $9.23 billion. That includes online sales growth of 52.8%. This helped lift the company’s net profit after tax (NPAT) by a healthy 7.7% to another record high of $545 million.

And yet this quality, which I think is on clear display, doesn’t seem to be reflected in the current JB Hi-Fi share price. Which takes us to our second reason: JB Hi-Fi shares are cheap today.

JB Hi-Fi stock: cheap quality

How cheap? Well, for one, the company has lost close to 15% of its value over 2022 to date. It’s also down more than 23% from its most recent all-time share price high.

But, more tellingly, the company is trading on a price-to-earnings (P/E) ratio of just 8.9 right now. That’s an incredibly low P/E ratio. Consider that ASX 200 bank share Commonwealth Bank of Australia (ASX: CBA) is sitting on a P/E of 19.57 today.

This low share price relative to JB’s earnings gives it a rather massive trailing dividend yield of 7.5% today. That’s fully franked too, so we can gross it up to a hefty 10.7% with that full franking.

I reckon JB shares are good value at anywhere under $44 a share. But under $43? I think we have a bargain here.

Sure, JB Hi-Fi is a discretionary retailer, and would probably get a whack next time there is a recession.

But in my view, there is almost zero chance this business will not be bigger, better, and more profitable in 10 years’ time. So I’m seriously considering buying this company before 2022 is out.

The post I’m buying JB Hi-Fi stock now while it’s under $44 appeared first on The Motley Fool Australia.

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More reading

• Start generating extra income by investing $5 a day in ASX shares. Here’s how
• I’m racing to buy dirt-cheap ASX dividend shares before it’s too late
• 3 ASX 200 shares in the spotlight for 2023 as consumer sentiment ‘bounces’
• 3 ASX 200 value shares I think could soar in 2023
• 3 top ASX 200 dividend shares I think are bargain buys right now

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Core Lithium Ltd (ASX: CXO) share price is in the green today.

Core Lithium shares are rising 3.48% and are currently trading at $1.04.

Let’s take a look at what could be weighing on the Core Lithium share price today.

What’s going on?

Core Lithium shares are outperforming multiple ASX lithium shares today. The Sayona Mining Ltd (ASX: SYA) share price is lifting 1.25% today, while Lake Resources N.L. (ASX: LKE) shares are up 0.95% and Allkem Ltd (ASX: AKE) shares are up 0.34%. However, the Pilbara Minerals Ltd (ASX: PLS) share price is 0.39% in the red.

In US markets overnight, lithium shares also had a mixed performance. The Sociedad Quimica y Minera de Chile share price (NYSE: SQM) climbed 1.63%, while Albemarle Corporation (NYSE: ALB) shares leapt 0.069%. meanwhile, Lithium Americas Corp (NYSE: LAC) shares slid 3.47%.

Core Lithium shares descended 6% on the market yesterday. Investors could be buying the dip in light of recent positive broker coverage on the company’s shares. Macquarie lifted Core Lithium to outperform this week with a $1.30 price target.

The broker is tipping Core Lithium to generate a high level of free cash flow in FY24 and FY25. Core Lithium is developing the Flinders Lithium Project in the Northern Territory. Core Lithium states Finniss is “one of the most capital efficient lithium projects” in Australia. First spodumene concentrate production from this project is due in the first half of 2023.

Last week, Core Lithium advised it is making “good exploration progress” at the Finniss project. Drilling at the Hang Gong and Bilatos prospects delivered “promising results”.

Commenting on this news, CEO Gareth Manderson said:

The RC and diamond drilling results are encouraging and demonstrate that the additional investment in the drilling program at Finniss in 2022 is the right approach for the exploration strategy.

Core Lithium share price snapshot

The Core Lithium Ltd (ASX: CXO) share price has soared 101.94% in the last year.

fool_stock_chart ticker=ASX:CXO

Core Lithium has a market capitalisation of about $1.9 billion based on the current share price.

The post Why is the Core Lithium price rebounding today? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Core Lithium share price has 25% upside: Macquarie
• While the ASX 200 struggled in 2022, investors doubled down on lithium shares. Here’s why
• Here are the 3 most heavily traded ASX 200 shares on Monday
• 2 ASX lithium shares to buy, and 1 to avoid: broker

Motley Fool contributor Monica O’Shea 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX 200 gold shares are having a top run on the market today amid higher gold prices.

Gold explorers in the green include Evolution Mining Ltd (ASX: EVN), Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST)

Let’s take a look at what is weighing on ASX 200 gold shares today in more detail.

Gold prices lift

Evolution Mining shares are rising 7% today. Meanwhile, Newcrest Mining shares are lifting 5.71% and Northern Star Resources shares are up 3.94%. For perspective, the S&P/ASX 200 Index (ASX: XJO) is climbing 1.58% today.

Gold shares after lifting after the spot gold price rose by 1.6% overnight. Gold is currently fetching US1,827.40 an ounce at last look, according to CNBC.

A weaker US dollar provided the gold price with a boost, as my Foolish colleague James reported this morning. The Bank of Japan shifted its yield curve, causing the Japanese yen to surge to a four-month peak against the dollar, Reuters reported.

Commenting on the impact of the US dollar on the gold price, Exinity chief market analyst Han Tan, quoted on CNBC, said “spot gold is being given another chance to shine thanks to the dollar’s pullback”. He added:

The next leg down for the dollar should send spot gold onto a new cycle high past $1,824.50.

One analyst is tipping the gold price to continue to rise, despite the prospect of the US Federal Reserve raising interest rates next year. Circle Squared Alternative Investments chief executive officer Jeffrey Sica said in quotes cited by Reuters:

I see that it’s going to be a dark shadow on the gold market, but I still think we’re headed for an upside.

Earlier this week, Newcrest advised the market of leadership changes at the company. CEO and managing director Sandeep Biswas has retired. The company’s chief financial officer Sherry Duhe has taken the reigns as interim CEO.

Share price snapshot

Newcrest Mining shares have fallen nearly 13% in the past year.

The Northern Star Resources share price has soared 17.7% in the last year.

Evolution shares have slid 25% in the last 52 weeks.

The post Why are ASX 200 gold shares having such a stellar run today? appeared first on The Motley Fool Australia.

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More reading

• Why European Lithium, Evolution, Medadvisor, and REA shares are charging higher
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Could copper become ‘the lithium’ of 2023?

Motley Fool contributor Monica O’Shea 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 recommended REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is well and truly back on form on Wednesday. In afternoon trade, the benchmark index is up 1.3% to 7,115.2 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

BWX Ltd (ASX: BWX)

The BWX share price is down a further 12% to a new low of 26 cents. Investors have been abandoning the Sukin skincare manufacturer after the release of a shocking business update. BWX has admitted to channel stuffing activities and revealed a growing mountain of debt. As things stand, BWX is going to breach its debt covenants in January if they are not waived. And don’t be surprised if class action lawyers are circling the company.

Novonix Ltd (ASX: NVX)

The Novonix share price is down over 6% to a 52-week low of $1.59. This morning, the battery materials technology company appeared to downgrade and delay its production guidance. As of late October, Novonix was on track for synthetic graphite anode materials production of 10,000 tonnes per annum (tpa) in 2023. It now expects to begin production at a rate of approximately 3,000 tpa in 2024, before ramping up to approximately 12,000 tpa in 2028.

Symbio Holdings Ltd (ASX: SYM)

The Symbio share price has crashed 34% to $1.68. Investors have been selling this voice communications software provider’s shares after it downgraded its FY 2023 earnings guidance. Symbio now expects FY 2023 EBITDA to be between $26 million and $30 million, which represents a 25% downgrade based on the mid-point of its guidance ranges. Management advised that the company’s Communications Platform-as-a-Service (CPaaS) division has been impacted by returns and slow sales progress.

TPG Telecom Ltd (ASX: TPG)

The TPG share price is down 3.5% to $4.61. This has been driven by news that the ACCC has blocked its proposed regional mobile network arrangements with Telstra Group Ltd (ASX: TLS). The competition watchdog believes the “arrangements will likely lead to less competition in the longer term and leave Australian mobile users worse off over time, in terms of price and regional coverage.” Telstra has since announced plans to appeal the decision.

The post Why BWX, Novonix, Symbio, and TPG shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• Why did this ASX All Ordinaries share just crash 33%?
• Novonix share price sinks on surprise production guidance downgrade
• Telstra share price lower after ACCC blocks TPG deal
• I’d buy these 3 ASX 200 shares in 2023 and hold them for a decade
• Little downside protection for popular ASX 200 shares as 2023 looms a much tougher year for blue chip stocks

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 positions in and has recommended Telstra Group and Symbio. The Motley Fool Australia has recommended Tpg Telecom and Symbio. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Origin Energy Ltd (ASX: ORG) share price is rocketing on Wednesday amid news of the $9 per share acquisition offer previously put to the company.

The S&P/ASX 200 Index (ASX: XJO) utilities giant announced the consortium behind the bid is on track to complete its due diligence in the new year. Origin has agreed to extend its exclusivity until 16 January.

Meanwhile, one expert is said to have flagged the stock as an opportunity, saying the market is overestimating the risk of the deal failing.

Right now, the Origin share price is $7.52, 6.21% higher than its previous close. That’s also 16% lower than the takeover offer on the table of the company.

For comparison, the ASX 200 is up 1.51% today, recovering all of yesterday’s losses.

Let’s take a closer look at the news that’s seemingly driving the energy giant’s stock higher today.

What’s going right for the Origin share price today?

It’s a good day to be invested in Origin Energy. The market is bidding its share price higher despite no price-sensitive news having been released by the ASX 200 giant.

Though, the company did reveal the consortium behind its $9 per share takeover offer is planning to sign binding transaction documents after the holiday period, wherein it’s expected to complete due diligence. Therefore, Origin has extended the consortium’s exclusivity to mid-January.

Meanwhile, RBC Capital Markets believes the ASX’s apparent suspicion the deal could fall through has created a buying opportunity. Analyst Gordon Ramsay said, courtesy of the Australian Financial Review:

We see an arbitrage opportunity for investors willing to play this space, particularly since the Origin board has effectively already endorsed the offer in the absence of a superior proposal.

In a worst-case scenario, the bidders may seek a discount on the prior agreed offer price.

Will this discount be as large as the current disconnect between the current Origin share price and the indicative non-binding offer? We would be surprised.

This year has been a good one for Origin stock. The company’s share price has gained 40% since the start of 2022. It’s also 45% higher than it was this time last year.

Comparatively, the ASX 200 has fallen 6% year to date and 3% over the last 12 months.

The post Why is the Origin Energy share price surging 6% on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Origin share price lifts despite price cap casting shadow over $18 billion takeover
• Why is the Origin Energy share price dumping 8% on Monday?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Bigtincan, Nanosonics, Origin, and Tyro shares are sinking today
• 3 ‘boring’ ASX shares with returns over 25% in 2022

Motley Fool contributor Brooke Cooper 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.

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With rising gold prices, ASX investor interest in owning gold as an investment is also on the rise. But owning physical gold bullion is a costly way of exposing an investment portfolio to gold. There’s the hassle of buying and transporting one of the world’s heaviest metals for one. Then there is safe storage to think about.

For these reasons, many investors prefer to own gold exchange-traded funds (ETFs), rather than the physical metal itself. ETFs charge fees, sure. But many investors prefer paying a small fee rather than dealing with the hassle of physical gold ownership. So if an investor wished to go down the ETF path, what options does the ASX provide?

What kinds of physical gold ETFs does the ASX offer?

Well, a popular choice is the Global X Physical Gold ETF (ASX: GOLD). This ETF represents ownership of physical gold bullion, which is stored on behalf of the fund in a London bank vault. The Global X Physical Gold ETF has close to $2.6 billion in assets under management, and charges a fee of 0.4% per annum for its services. That’s $40 per year for every $10,000 invested.

Another option that this provider offers is the Global X Physical Precious Metals Basket ETF (ASX: ETPMPM). This fund is similar to the Physical Gold ETF, but also includes exposure to other precious metals in silver, platinum and palladium bullion.

But the Global X Physical Gold ETF isn’t the only pureplay gold ETF on the ASX. Another option is Perth Mint Gold (ASX: PMGOLD). Perth Mint Gold is a fund run by the Perth Mint, itself a government-owned institution. This fund has just under $650 million in assets under management, with units of the fund available for direct conversion into Perth Mint bullion bars.

Due to its ownership by the Western Australian government, this ETF also offers a government guarantee on all holdings. It charges a management fee of 0.15% per annum, or $15 per year for every $10,000 invested.

Want hedging too?

A third option is the BetaShares Gold Bullion ETF (ASX: QAU).

This is the only gold ETF on the ASX that offers currency hedging, as well as exposure to gold. Gold, as a commodity, is usually priced in US dollars. This means that the above two funds’ values can be impacted by movements in the US dollar against the Australian dollar, as well as by the price movements of gold itself.

The BetaShares Gold Bullion ETF takes this secondary factor out of the equation, ensuring that currency impacts are theoretically nullified.

The BetaShares Gold Bullion ETF has just over $435 million in assets under management on the latest numbers. This ETF’s gold holdings are also backed by physical gold bullion, held in a London vault. Likely due to the costs of providing hedging, this ETF’s management fee stands at 0.59% per annum, or $59 a year for every $10,000 invested.

The post 3 (or 4) ASX ETFs to buy if you want physical gold ownership appeared first on The Motley Fool Australia.

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More reading

• Why is everyone suddenly talking about the Global X Physical Gold ETF?

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 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.

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Investors were caught off guard yesterday after the Bank of Japan (BoJ) broke decades of monetary tradition.

The central bank’s decision to widen the acceptable band on the country’s risk-free rate was met with blood in equity markets. In response, Japan’s Nikkei 225 Index fell a considerable 2.5%. Meanwhile, our local S&P/ASX 200 Index (ASX: XJO) shaved off 1.5%.

You might be wondering why this decision created such a panic. The short answer is: it creates more questions than answers. Let’s delve into what that means exactly.

Final nail in the ultra-low-rate coffin

Japan’s central bank is one of only a handful that has implemented negative interest rates at some point over its existence. In 2016, the BoJ targeted a negative 0.1% rate to try and curb decades of deflation, evident by the country’s stagnant — at times falling — gross domestic product (GDP).

However, Japan proved yesterday that even its economy is experiencing levels of inflation that can no longer be ignored. In its statement, the BoJ revealed it would widen its target band on the 10-year bond to plus or minus 0.5%, up from 0.25%.

The decision comes at a time when many investors and economists are deliberating over whether more rate rises are to come in Australia and the United States. Earlier this month, Philip Lowe made the call to jack the Aussie cash rate up to 3.1%.

Yesterday’s BoJ decision could be interpreted as further rate rises to come. In fact, Exante Data founder and CEO, Jens Nordvig, went as far as saying:

Japan is a big investor in all kinds of markets, especially fixed-income markets around the world. We can see when there’s a shift in Japan, we’ve decided to have all yields globally shift up today from Europe to the United States. So it’s a big deal. And it’s not just today, right? This is a signal that they’re going in a certain direction, there are going to be almost guaranteed more steps in 2023 from the Bank of Japan.

The Bank of Japan made an impactful change to its bond yield policy, and now the $JPY is reaching its highest level against the $DXY in months.

Here’s how @jnordvig thinks this news will have an effect for market demand in the States. #jensonyen pic.twitter.com/aSySmaN5rI

— CNBC’s Fast Money (@CNBCFastMoney) December 20, 2022

https://platform.twitter.com/widgets.js

Further interest rate increases are not the words investors in share markets want to hear right now. As Nordvig points out, that would mean less liquidity available to invest, potentially depressing prices more.

Why is the Bank of Japan doing this?

The ‘why’ for loosening the target band on Japan’s 10-year yield depends on who you ask. According to the BoJ governor Haruhiko Kuroda the reason is to create a better functioning market, stating:

Today’s step is aimed at improving market functions, thereby helping enhance the effect of our monetary easing… It’s therefore not an interest rate hike.

However, with an inflation rate of 3.7% and central banks around the world hiking at a record pace — one could argue the conditions demanded policy tightening.

The Japanese Yen to the US dollar has eroded in value throughout the year, as shown above. Rising rates in other countries made foreign treasuries more appealing than holding Yen.

Given the country has a negative trade balance, Japan would effectively be importing more inflation to its country via its depreciated currency.

The post Why you should pay attention to the Bank of Japan appeared first on The Motley Fool Australia.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has bounced back from yesterday’s selloff. At the time of writing, the benchmark index is up 1.3% to 7,117.2 points.

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

European Lithium Ltd (ASX: EUR)

The European Lithium share price is up 15% to 8.3 cents. Investors have been buying this lithium explorer’s shares after it announced a binding offtake agreement with auto giant BMW. From 2026, European Lithium will supply BMW with a total of 50,000 metric tonnes of battery grade lithium hydroxide from the Wolfsberg Lithium Project in Austria.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is up 7% to $3.04. Evolution and other gold miners are charging higher today after the gold price rose strongly overnight. This has led to the S&P/ASX All Ordinaries Gold index rising an impressive 4.9% on Wednesday.

Medadvisor Ltd (ASX: MDR)

The Medadvisor share price is up 11% to 25 cents. This morning, the medtech company released its revenue guidance for the first half of FY 2023. Medadvisor revealed that it expects to report half year revenue between $58 million and $61 million. This will be up 50% to 60% on the prior corresponding period.

REA Group Limited (ASX: REA)

The REA share price is up 3% to $112.39. This may have been driven by a broker note out of Goldman Sachs this morning. According to the note, the broker has retained its conviction buy rating with a slightly trimmed price target of $158.00. Goldman commented: “Following the recent decline in share prices, REA/DHG are now trading on 19x/13x 12mf EBITDA, which we see as very attractive vs. historical levels (>20% discount).”

The post Why European Lithium, Evolution, Medadvisor, and REA shares are charging higher appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX lithium share is rocketing 22% on a deal with BMW
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• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Thursday

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. owns shares of MedAdvisor. The Motley Fool Australia has recommended REA Group and Medadvisor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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