It’s been another fabulous day for ASX investors this Melbourne Cup day. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has gained a healthy 1.07% and is now going for just over 6,930 points. Clearly, the markets have been happy with what just came out of the Reserve Bank of Australia.  

So let’s now take a deeper dive into the market’s moves today and check out the shares that are currently topping the ASX 200’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Tuesday

Whitehaven Coal Ltd (ASX: WHC)

First up today is the ASX 200 coal miner Whitehaven Coal. This Tuesday has had a sizeable 10.97 million Whitehaven shares dug up and sold thus far. We haven’t had any fresh news or announcements from the company today.

However, we have seen some wild swings in the Whitehaven share price which could explain this volume. Whitehaven shares are presently up by 0.61% at $9.08 a share. But this morning we had a dramatic spike in price all the way up to $9.26. It didn’t last too long though, with the share price quickly returning to a lower level.

Core Lithium Ltd (ASX: CXO)

Our next ASX 200 share is the lithium producer Core Lithium. We’ve seen a decent 18.5 million Core Lithium shares bought and sold on the share market so far. Like its lithium peer Pilbara, Core Lithium shares have surged in value today.

This one is up 3.75% at $1.44 a share after rising as high as $1.46 around lunchtime. Again, it looks like it’s this big share price gain that is the smoking gun for Core Lithium’s high volumes here.

Pilbara Minerals Ltd (ASX: PLS)

And it’s another ASX 200 lithium stock that takes the cup today in terms of share trading volumes. This Tuesday has had a notable 18.78 million Pilbara shares change hands as it currently stands. There’s been no price-sensitive news out from Pilbara today. However, we have seen a pretty hefty share price rise from the lithium star.

The Pilbara share price has presently gained a healthy 3.24% to $5.26 a share. It looks like it is this gain that has elicited the elevated volumes we are seeing.   

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

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More reading

• Why is the Dreadnought share price struggling despite successful drill program
• Why is the Zip share price up 5% on Tuesday?
• These ASX 200 energy shares are leading the market higher on Tuesday
• Guess which was the best-performing ASX ETF in October
• Why are Origin shares burning 4% brighter 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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The A2 Milk Company Ltd (ASX: A2M) share price has failed to climb with the market today.

In afternoon trade, the infant formula company’s shares are down 1.5% to $5.18.

This compares unfavourably to the ASX 200 index, which is up over 1% this afternoon.

Why is the A2 Milk share price underperforming?

The weakness in the A2 Milk share price appears to have been driven by the release of an update out of smaller rival Bubs Australia Ltd (ASX: BUB) on Monday.

That update revealed that trading conditions in the massive China market are particularly tough right now.

Bubs’ management explained:

Across the infant formula category, a significant number of brands have oversupplied the market, including local Chinese brands. This has created a significant decline in margin across all distribution partners. In addition, the cost of doing business has also increased on cross-border e-commerce, particularly as it relates to advertising spend. The category issue was exacerbated through a subdued result during the 6.18 shopping festival, and the oversupply by other brands is expected to continue through to the upcoming Double 11 festival.

This appears to have sparked fears that A2 Milk’s recovery could be under threat in the key market.

The good news is that investors won’t have long to wait to find out if that is the case. A2 Milk is holding its annual general meeting in a couple of weeks on 18 November. At the event, the company is likely to provide an update on trading conditions and its performance during the key Double 11 festival (Single’s Day event).

Stay tuned for that update!

The post Why is the A2 Milk share price underperforming on Tuesday? appeared first on The Motley Fool Australia.

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• Why A2 Milk, Argosy Minerals, Dicker Data, and Life360 shares are falling
• Why is the A2 Milk share price having a better end to the week than the index?
• Why is the A2 Milk share price falling today?
• Which ASX All Ords shares avoided a sell-off during the last recession?
• Looking to buy A2 Milk shares? Here’s what to watch at next month’s AGM

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 recommended A2 Milk. 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) was already enjoying a solid run today.

The benchmark index was up 1.0% at 2.30pm AEDT, despite a slide in US stock markets overnight.

Then the Reserve Bank of Australia (RBA) released its interest rate decision.

The RBA announced a 0.25% hike in interest rates, bringing the official cash rate to 2.85%. This was broadly in line with expectations, though the latest inflation data had an increasing number of analysts predicting a 0.50% increase.

Investors reacted by sending the ASX 200 up another 0.3% in the minutes following the release of the decision.

November marks the seventh consecutive month of interest rate hikes from the central bank.

It was only back on 3 May that interest rates still stood at a record low of 0.10%. The following day the RBA raised the rate by 0.25%, its first hike since November 2010. And in case you’re wondering, in November 2010, the cash rate got boosted to a rather tight 4.75%.

Atop today’s cash rate hike, the RBA board also increased the interest rate on Exchange Settlement balances by another 0.25%, taking that to 2.75%.

What did the RBA say about today’s interest rate hike?

Australia is not alone in struggling with high inflation, RBA governor Philip Lowe pointed out. But it is too high.

“Over the year to September, the CPI inflation rate was 7.3%, the highest it has been in more than three decades,” he said.

“Global factors explain much of this high inflation, but strong domestic demand relative to the ability of the economy to meet that demand is also playing a role.”

And getting back to the RBA’s 2% to 3% target range for inflation will require “a more sustainable balance between demand and supply”.

This would indicate ASX 200 investors should prepare to see the demand side of the equation take a greater hit over the months to come.

As for the Aussie economy, Lowe said it’s “continuing to grow solidly” with national income “boosted by a record level of the terms of trade”.

Next year, the RBA expects Australia’s economic growth to moderate alongside the wider global economy. Economic growth will also be impacted as “the bounce-back in spending on services runs its course, and growth in household consumption slows due to tighter financial conditions”.

The RBA’s central forecast for GDP growth was revised down, with the board now forecasting growth in 2022 of around 3.0%, with 1.5% expected in 2023 and 2024.

What about employment?

On the labour front, the unemployment rate of 3.5% remains at the lowest level in some 50 years. Wages are rising as well, though “lower than in many other advanced economies”.

The RBA expects wages growth to pick up “due to the tight labour market and higher inflation”.

If there’s one thing ASX 200 investors don’t care to hear, though, it’s uncertainty. And there’s a fair amount of that going around.

“One source of uncertainty is the outlook for the global economy, which has deteriorated over recent months,” Lowe said.

The eventual impact on household spending in the higher rate environment is another uncertainty.

What can ASX 200 investors expect next

ASX 200 investors look to have largely baked a further rise in inflation into the equation.

According to Lowe:

A further increase in inflation is expected over the months ahead, with inflation now forecast to peak at around 8% later this year. Inflation is then expected to decline next year due to the ongoing resolution of global supply-side problems, recent declines in some commodity prices and slower growth in demand.

The RBA’s central forecast for CPI inflation is around 4.75% in 2023 and then “a little above” 3% in 2024.

ASX 200 investors should also be aware this almost certainly won’t be the last rate hike from the RBA.

Lowe continued:

The board expects to increase interest rates further over the period ahead. It is closely monitoring the global economy, household spending and wage and price-setting behaviour.

The size and timing of future interest rate increases will continue to be determined by the incoming data and the board’s assessment of the outlook for inflation and the labour market.

The board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that.

The post ASX 200 jumps higher following RBA rate announcement appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most traded ASX 200 shares on Tuesday
• Why is the A2 Milk share price underperforming on Tuesday?
• Why is the Dreadnought share price struggling despite successful drill program
• Why Graincorp, Nanosonics, NextDC, and Readytech shares are racing higher
• Why A2 Milk, Argosy Minerals, Dicker Data, and Life360 shares are falling

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.

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The Dreadnought Resources Ltd (ASX: DRE) share price is stalled today amid a drop in the price of base metals.

Dreadnought shares are currently trading at yesterday’s closing price of 11.5 cents apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 1.09% at the time of writing.

Let’s take a look at what’s going on with the ASX mineral explorer share today.

What’s going on?

Western Australian company Dreadnought is exploring multiple metals including zinc, iron, lead, silver, and gold.

A dramatic fall in the zinc price overnight may have impacted the Dreadnought share price. Zinc slumped 5.07% overnight to US$2,678.5 a tonne.

Base metal prices fell amid rising COVID-19 cases and weak manufacturing data from China, Reuters reported.

The iron ore price also dropped 2.38% overnight to US$82 a tonne, Trading Economics data shows.

Today, Dreadnought advised of successful assay results for drilling at the Central Yilgarn Project in Western Australia.

The company confirmed a fertile VMS base metals system at the Nelson copper, lead, zinc, and silver target. Results included:

• 1m at 2.26% zinc, 2.27% lead, 53g/t silver and 0.1 g/t gold from 157m at drill hole NERC006

At Spitfire, Dreadnought discovered thick high-grade goethite-hematite iron ore. Results included:

• 20m at 61.0% iron, 0.98% aluminum oxide., 2.99% silicon dioxide, 0.06% phosphorus, 8.2% LOI from 22m at drill hole SPRC001A

Management comment

Commenting on the news, managing director Dean Tuck said:

These results are a timely reminder of the potential at Central Yilgarn which represents a significant opportunity in an underexplored region.

We view Central Yilgarn as a valuable project in the portfolio with opportunity for commercialisation of a range of commodities and exploration success.

Share price snapshot

Despite today’s stagnation, the Dreadnought share price has soared almost 200% in the past year, while it has gained 170% year to date.

In the past month, Dreadnought shares have climbed 13%.

Dreadnought has a market capitalisation of about $334 million based on the current share price.

The post Why is the Dreadnought share price struggling despite successful drill program appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most traded ASX 200 shares on Tuesday
• Why is the Zip share price up 5% on Tuesday?
• These ASX 200 energy shares are leading the market higher on Tuesday
• Guess which was the best-performing ASX ETF in October
• Why are Origin shares burning 4% brighter today?

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 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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The S&P/ASX 200 Index (ASX: XJO) is on form and on track to record a strong gain. In afternoon trade, the benchmark index is up 1.1% to 6,940.1 points.

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

Graincorp Ltd (ASX: GNC)

The Graincorp share price is up 5% to $8.79. Investors have been buying this grain exporter’s shares after wheat prices stormed higher. This is the second day in a row that the Graincorp share price has been racing higher, stretching its week to date gain to 13%.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is up almost 3% to $4.23. This may have been driven by a broker note out of Bell Potter this morning. According to the note, the broker has upgraded this infection prevention company’s shares to add rating with a $4.87 price target. The broker made the move on valuation grounds following recent share price weakness.

NextDC Ltd (ASX: NXT)

The NextDC share price is up 6% to $8.83. This morning the team at Macquarie reiterated its outperform rating on this data centre operator’s shares with a trimmed price target of $11.40. The broker notes that the NextDC share price has fallen heavily this year, creating a buying opportunity.

Readytech Holdings Ltd (ASX: RDY)

The Readytech share price is up 27% to $4.12. Investors have been scrambling to buy this enterprise software company’s shares after it received a takeover offer. Readytech has received a conditional, non-binding indicative proposal from funds managed or advised by Pacific Equity Partners (PEP) to acquire it by way of a scheme of arrangement at an offer price of $4.50 per share. This was a 38.9% premium to its last close price.

The post Why Graincorp, Nanosonics, NextDC, and Readytech shares are racing higher appeared first on The Motley Fool Australia.

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• ReadyTech becomes latest ASX tech share targeted for a takeover
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• Here are the top 10 ASX 200 shares today
• Wheat woes: Why the Graincorp share price is charging 8% to the upside today
• Here are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has positions in NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nanosonics Limited and Readytech Holdings Ltd. The Motley Fool Australia has positions in and has recommended Nanosonics Limited. The Motley Fool Australia has recommended Readytech Holdings Ltd. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on form again and on course to record a strong gain. At the time of writing, the benchmark index is up 1% to 6,930.9 points.

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

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 2% to $5.15. This may have been driven by concerns over the state of the infant formula market in China. On Monday, a smaller rival revealed that the market was being flooded by suppliers. This could lead to softening demand, discounting, and weaker margins.

Argosy Minerals Limited (ASX: AGY)

The Argosy Minerals share price is down 4% to 49.5 cents. This follows the release of an update on the development of the Rincon Lithium Project in Argentina. That update reveals that 98% of the 2,000tpa operational development work is now complete. However, investors appear frustrated with the slow progress given that 97% of the work was complete last month.

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price is down almost 3% to $10.47. This morning Ord Minnett responded to the company’s third quarter update by maintaining its hold rating with an $11.50 price target. The broker notes that Dicker Data’s third quarter performance was impacted by rising costs and supply chain pressures. Though, on the positive side, the broker highlights that demand remains strong and its order book is elevated.

Life360 Inc (ASX: 360)

The Life360 share price is down 3% to $6.71. This is despite there being no news out of the location technology company. However, it is worth noting that the Life360 share price rose 40% in October. This may have led to some investors taking a bit of profit off the table on Tuesday.

The post Why A2 Milk, Argosy Minerals, Dicker Data, and Life360 shares are falling appeared first on The Motley Fool Australia.

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More reading

• What’s going on with the Dicker Data share price on Monday?
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• If you invested $5,000 in each of these ASX shares 10 years ago, you’d be a millionaire today

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited and Life360, Inc. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has recommended A2 Milk. 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 Zip Co Ltd (ASX: ZIP) share price is climbing today, providing investors with some much-needed relief amid its steep sell-off year to date.

The ASX BNPL share is currently trading for 64 cents each, 4.92% higher than yesterday’s closing price.

Zip’s share price is outperforming the financial sector today. The S&P/ASX 200 Financials Index (ASX: XFJ) is the second-worst-performing sector at the time of writing, up 0.47%.

Meantime, Zip’s BNPL peers aren’t enjoying similar lifts. The Block Inc. (ASX: SQ2) share price is down 0.3% while Sezzle Inc. (ASX: SZL) shares are faring a little better, up 1%.

So why are Zip’s shares rallying on Tuesday? Let’s investigate.

Shares rise on potential interest rate pivot

Some investors believe the next rate hike by the US Federal Reserve will not be as severe as previous increases, as reported by The Australian Financial Review.

The consensus is the Fed will increase interest rates by 0.75 percentage points at its next meeting this week.

There are also clues that its anticipated December interest rate hike could be in the range of a 0.50 percentage point increase. This would provide relief to growth stocks such as Zip, as well as the broader market.

Market movements may be showing clues

This is the observation of Morgan Stanley strategist Michael Wilson. Excerpts of Wilson’s research note on the matter appeared in an article published by Bloomberg on Monday.

Wilson pointed toward the recent rally in US equities over the past fortnight as a sign the Fed’s fiscal tightening could be starting to wane, with the S&P 500 (INDEXSP: .INX) gaining 5.28% over this period.

“This kind of price action isn’t unusual toward the end of the cycle particularly as the Fed moves closer to the end of its tightening campaign, something we think is approaching,” Wilson said.

Wilson also pointed toward the inversion of the yield curves of 10-year and three-month treasury bonds as a sign that they “all support a Fed pivot sooner rather than later”.

Back home in Australia, the market placed a bet that there’s a 22 per cent chance the RBA will raise interest rates to 3.1% later today, but some analysts believe it could be as low as 2.85%.

Zip share price snapshot

The Zip share price is down a painful 85% year to date. That’s a far cry from the S&P/ASX 200 Index (ASX: XJO) which is down around 7% over the same period.

The company’s market capitalisation is around $455 million.

The post Why is the Zip share price up 5% on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• These ASX 200 energy shares are leading the market higher on Tuesday
• Guess which was the best-performing ASX ETF in October
• Why are Origin shares burning 4% brighter today?
• Why is the Brickworks share price sliding lower on Tuesday?
• Why I think today’s cheap ASX dividend shares can double over the next 10 years

Motley Fool contributor Matthew Farley 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 Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. 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 climbing once more on Tuesday, reaching its highest point since mid-September. Interestingly, S&P/ASX 200 Energy Index (ASX: XEJ) shares are among those leading its gains despite an overnight fall in oil prices.

The energy sector is currently up 1.61% compared to the broader ASX 200’s 0.9% rise.

Meanwhile, shares in many of the market’s favourite ASX 200 energy giants are taking off. Here’s how they’re trading right now:

• The Beach Energy Ltd (ASX: BPT) share price is up 2.96% right now to $1.637
• Santos Ltd (ASX: STO) stock has gained 1.95% to trade at $7.85
• Shares in Woodside Energy Group Ltd (ASX: WDS) have lifted 1.83% to $36.64
• Karoon Energy Ltd (ASX: KAR) shares have gained 2.36% to reach $2.17

So, what might be going on with energy shares today? Let’s take a look.

ASX 200 energy shares outperform despite oil woes

Tuesday has shaped up to be a good day for ASX 200 energy shares despite falling oil prices.

The Brent crude oil price fell 1% to US$94.83 a barrel as most of Australia slept, while the US Nymex crude oil price dropped 1.6% to US$86.53 a barrel.  

The black liquid’s value slumped amid news United States upped its oil output to a new post-pandemic high in August, reaching nearly 12 million barrels a day.

Meanwhile, US President Joe Biden has called on oil producers to increase their production in an effort to tackle energy prices, Reuters reports.

Oil prices may have also been dragged down by news of falling factory activities in China.

The purchase manager index (PMI) of the nation’s manufacturing industry fell 0.9% in October to 49.2% amid COVID-19-induced lockdowns. A figure under 50% indicates activities are contracting. This could reduce Chinese demand for oil.

Fortunately, the headlines apparently haven’t dinted ASX 200 energy shares. The sector is continuing on its upwards trajectory.

Today’s gain sees it nearly 39% higher than it was at the start of 2022. It has also risen 33% since this time last year.

The post These ASX 200 energy shares are leading the market higher on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Why is the Zip share price up 5% on Tuesday?
• Guess which was the best-performing ASX ETF in October
• Why are Origin shares burning 4% brighter today?
• Why is the Brickworks share price sliding lower on Tuesday?
• Why I think today’s cheap ASX dividend shares can double over the next 10 years

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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October turned out to be a wonderful month for ASX shares and the S&P/ASX 200 Index (ASX: XJO). The ASX 200 managed to clock a healthy gain of 6% over the month just gone.

So any ASX exchange-traded fund (ETF) that tracks the ASX 200 would have given investors a similar gain.

But ASX 200 ETFs like the iShares Core S&P/ASX 200 ETF (ASX: IOZ) weren’t even close to the best-performing ETFs on the ASX last month. Want to know what the winner was?

FUEL-up the best-performing ASX ETF last month

The winner among ASX ETFs last month was none other than the BetaShares Global Energy Companies ETF (ASX: FUEL).

This ETF from BetaShares is not your typical ETF. It is not an index fund, as the most popular ETFs out there are. Rather, it is a sector-specific fund.

The Global Energy ETF does track shares, though. In this case, it is a basket of global companies involved in the exploration, extraction, production, storage, refining, transporting and sale of energy commodities like oil and gas.

It contains mainly US companies (57.1% at the latest count), but also has companies hailing from Canada, Europe, the United Kingdom, Brazil, and China in its portfolio.

Some of its current top holdings include famous names like Shell, Exxon Mobil, BP, and ConocoPhillips.

So the Global Energy ETF started October at a unit price of $5.61. But yesterday, this ETF closed at $6.56 a unit. That translates into a gain of 16.93% for October, almost triple that of the ASX 200.

These kinds of gains can only be put down to the underlying performance of the shares within this ETF to start with.

For example, Exxon Mobil stock, the ETF’s second-largest holding, rose a whopping 26.92% over October. Shell was up more than 6%, while ConocoPhillips rose 23.2%.

With gains like that among the Global Energy ETF’s portfolio, it’s perhaps no wonder it had such a cracking month.

The post Guess which was the best-performing ASX ETF in October appeared first on The Motley Fool Australia.

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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 BP. 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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It’s ironic how Australia is often happily referred to as “the lucky country”.

One reason it is described as such is due to the nation’s abundance of natural resources. You can visibly see it on the ASX, where mining companies dominate in numbers and market capitalisation.

But the expression originally comes from intellectual Donald Horne, who was referring to Australia as “the lucky country” as a pejorative term.

Horne’s point was that Australia’s great wealth and power all came about through pure luck, rather than through any ingenuity of the people, political system or economics.

Regardless, our country is blessed with some treasures that foreigners would absolutely love to get their hands on.

And that means companies that are getting that stuff out of the ground and selling it overseas will do pretty well.

Running with that thematic, BW Equities equity salesperson Tim Bleakley named two ASX shares that investors should buy:

Rare find for rare earths

Many investors know about Lynas Rare Earths Ltd (ASX: LYC) already, but Bleakley feels it is a ripe buy at the moment.

After all, the share price has dropped in excess of 27% since early April.

“The company delivered a strong fiscal year 2022 result,” Bleakley told The Bull.

“We like the company’s outlook.”

In a time of high geopolitical tensions, Lynas’ products are in hot demand. It is one of just a handful of businesses producing rare earths outside of China.

“Lynas has one of the biggest high-grade rare earth deposits in the world,” said Bleakley.

“Given the scale of its resource, it has the capacity to increase supplies to meet future demand. Rare earths are a key mineral used in electric vehicles.”

Lithium is not the only game in town

While shares for lithium producers have risen phenomenally in recent years, there are also other elements that modern batteries require.

Graphite is one that is used heavily in batteries for electric cars, which is where Syrah Resources Ltd (ASX: SYR) comes in.

“Syrah is the biggest graphite producer listed on the ASX,” said Bleakley.

“Graphite is a critical mineral for the transition to electric vehicles, so strong demand should persist for many years. The company’s outlook is bright.”

The Syrah share price has rocketed more than 48% just in the past month, for good reason.

“Syrah was recently selected for a US Department of Energy grant for up to US$220 million,” Bleakley said.

“The grant will support the financing for a potential expansion of the Vidalia active anode material facility in the US state of Louisiana.”

Syrah shares are up almost 26% year to date.

The post 2 ASX companies producing minerals the whole world wants: expert appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Champion Iron, Lynas, Newcrest, and Sayona shares are storming higher
• Lynas share price jumps despite 44% revenue fall
• Is the Lynas share price a buy ahead of tomorrow’s update?
• Why $6.5b Argo Investments is backing these ASX 200 lithium shares

Motley Fool contributor Tony Yoo 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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