Allkem Ltd (ASX: AKE) shares marched higher today. Allkem shares closed the session on Tuesday at $12.05, up 0.42%.

The S&P/ASX 200 Index (ASX: XJO) lithium share is among the biggest and lowest-cost lithium producers in the world. As such, it’s been a big beneficiary of soaring lithium prices.

Prices for the lightweight conductive metal remain up by more than 400% since this time last year amid strong growth in demand for critical battery materials as global electric vehicle (EV) production continues to surge.

Which brings us to the latest development out of the United States that could fuel even stronger demand for EVs, and offer another tailwind for Allkem shares.

United States spending bill could energise ASX lithium shares

Yesterday (overnight Aussie time) the US Senate passed a US$437 billion bill focused on healthcare and climate change.

Around US$347 billion is earmarked for climate and energy spending.

Of most relevance to Allkem shares, the bill ends the per-manufacturer limits on the US$7,500 tax credit for the purchase of new EVs that was previously in place.

Once it passes the House and is signed off by President Joe Biden, as is widely expected, the bill will take effect in January and run for a decade.

As Electrek reported, the EV credit previously had a cap of 200,000 cars per manufacturer. Tesla Inc, General Motors Company and Toyota had already exceeded the cap, with other EV manufacturers soon to follow.

Allkem shareholders may be interested in the part of the bill that requires “critical minerals” for EV batteries to either be sourced within the US or from a nation with a free trade agreement with the US.

That excludes China, which has long been the world’s major supplier of critical battery elements. And it could open the door for more lithium and other mineral imports from Australian miners.

How have Allkem shares been performing?

Allkem shares are up 29% over the past full year. This compares to a 12-month loss of 7% posted by the ASX 200.

Longer-term, the Allkem share price has leapt 294% over the past five years.

The post Could this new development boost Allkem shares heading into 2023? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Could this development further energise ASX lithium shares in FY23?
• 2 excellent ASX growth shares to buy – experts
• Here are the top 10 ASX 200 shares today
• Why is the Allkem share price leaping 5% on Monday?
• Broker says Allkem share price can rise 60% from here

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.

from The Motley Fool Australia https://ift.tt/GSbgkAN

The Electro Optic Systems Holdings Limited (ASX: EOS) share price has surged so far this trading week.

Shares in the defence and space technology company closed today’s session at $1.105 each, a gain of 10.5% on the day. Yesterday, Electro Optic shares gained 5.26%.

Let’s look into why investors are buying the stock this week.

What happened?

Electro Optic System’s subsidiary Spacelink announced that it had entered a cooperative research and development agreement with the US Army Space and Missile Defense Command Technical Centre on Monday.

The terms of the agreement include cooperation in developing alternative space communications pathways for Spacelink’s satellite relay system. 

This agreement will allow SpaceLink to gain a deeper insight into the US Army’s concept of operations and give the army the data it needs to support its interagency requirements.

Spacelink CEO Dave Bittinger said:

We are honored to work with USASMDC-TC to assure that our development efforts meet the Army’s needs. Sharing facilities, intellectual property, and expertise will elevate solutions for both the warfighter and industry, ultimately enhancing national security and U.S. dominance in space.

Electro Optic Systems share price snapshot

Even with this week’s rise, Electro Optic Systems shares are down almost 54% year to date and 74% over the past 12 months.

The company’s market capitalisation is currently $177 million.

The post Why has the Electro Optic Systems share price soared 16% in 2 days? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Top ASX shares to buy in August 2022
• Electro Optic Systems share price dips amid shock CEO resignation

Motley Fool contributor Matthew Farley has positions in Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/7c3ITbf

The All Ordinaries Index (ASX: XAO) ended up having a pretty decent day of trading on Tuesday.

By the market close, the All Ords had added a robust 0.30% to reach just over 7,278 points. But one ASX share fared far better. That was the Pure Hydrogen Corporation (ASX: PH2) share price.

Pure hydrogen shares had a cracking day today. The clean energy company ended up closing at 34.5 cents a share, up a rather extraordinary 21% from the 28 cents the company closed at yesterday.

Not only that, but Pure Hydrogen rose as high as 39 cents in intraday trading – a rise worth almost 40%.

So what might have caused this stellar share price performance?

Well, the answer is sadly unclear. There hasn’t been any news or announcements at all out of this company today. Or indeed this week.

But a few other things happened on the markets today which could have spilled over into the Pure Hydrogen share price.

Why did the Pure Hydrogen share price rocket 21% today?

The first is the news out of AGL Energy Ltd (ASX: AGL) and Fortescue Metals Group Limited (ASX: FMG). As my Fool colleague Tristan covered earlier today, these two ASX companies have joined forces in building a hydrogen plant in New South Wales.

Today we got the news that “two of Japan’s largest energy companies, Inpex Corporation and Osaka Gas have joined an expanded feasibility study that is looking at creating a green hydrogen and ammonia hub at AGL’s Hunter Energy Hub”.

This interest in Australian hydrogen is hardly bad news for Pure Hydrogen.

Another factor to consider is the renewed interest in lithium stocks on the ASX this week. Lithium stocks have had a breathtaking run over the past few trading days, despite any real catalysts to speak of.

Take the Lake Resources N.L. (ASX: LKE) share price. It’s gone from 93 cents last Friday to $1.24 as of today’s close – a gain worth almost 33% in just two days.

We’ve seen similar (if not quite as dramatic) moves from other lithium shares like Core Lithium Ltd (ASX: CXO) and Liontown Resources Limited (ASX: LTR). Hydrogen and lithium don’t have too much in common apart from a potential role in a cleaner energy future.

But it’s very possible that positive sentiment from the lithium sector has spilled over into the Pure hydrogen share price today regardless.

Whatever the reasons for Pure Hydrogen’s stellar day, it will no doubt be welcomed by investors.

The post Why did the Pure Hydrogen share price pop 21% today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Could this development further energise ASX lithium shares in FY23?
• Why is the Sayona Mining share price surging 15% on Monday?
• These 3 ASX tech shares had a cracking day on the ASX today
• The Openpay share price has cratered 40% in 3 days. What’s going on?
• Guess which ASX All Ordinaries share has rocketed 40% in 2 days?

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.

from The Motley Fool Australia https://ift.tt/U9hfEX0

The Australian Foundation Investment Co Ltd (ASX: AFI) share price, or AFIC for short, didn’t have the best day today. AFIC shares finished at market close trading down by 0.24% at $8.15. That’s in stark contrast to the S&P/ASX 200 Index (ASX: XJO), which finished in the green at 0.13%.

AFIC is a listed investment company (LIC) and one of the oldest LICs on the ASX at that. It first started trading way back in 1928.

Like all LICs, AFIC is not a typical company that sells goods or services. It instead functions more like a managed fund, investing its capital into other shares and assets on behalf of its investors.

LICs were around before anyone had ever heard of an exchange-traded fund (ETF). Today, LICs like AFIC compete with ETFs for the dollars of the ‘passive investor’. Both vehicles can offer a hands off investing approach to retail investors.

ETFs, especially index funds, have surged in popularity over the past decade or two. Investors love the low fees that ETFs can offer, as well as the ‘if you can’t beat it, join it’ approach an index fund offers investors.

An index fund like the iShares Core S&P/ASX 200 ETF (ASX: IOZ) will always deliver the returns of the S&P/ASX 200 Index (ASX: XJO). As such, investors who choose this ETF never have to worry about ‘underperforming the market’ since this investment is, for all intents and purposes, the market.

AFIC doesn’t have this luxury. Since it doesn’t just blindly track the ASX 200 index, it will always be put up against the returns of indexes like the ASX 200.

Why I would choose AFIC over an ASX 200 ETF today

But I think AFIC is still a superior choice to an ASX 200 ETF today. It’s not because of fees though. Yes, AFIC ‘s current management fee of 0.16% per annum is slightly higher than many ASX index funds, For example, IOZ charges a fee of 0.09% per annum.

No, it comes down to sheer performance.

As of 31 July, IOZ units have returned an average of 7.89% per annum over the past five years, and 9.19% per annum over the past ten. Those metrics include dividend distribution returns.

In contrast, AFIC shares have returned an average of 13% per annum over the past five years (to 30 June 2022), and 13.1% per annum over the past ten. If we take the LIC’s net assets per share growth, rather than share price returns, these figures are 8.4% per annum and 10.5% per annum respectively. These returns also reflect dividends.

So as you can see, in both cases, AFIC’s returns come in comfortably above those of an ASX 200 index fund like IOZ.

As such, I think AFIC is a superior investment choice for a passive investor, and I would prefer to use AFIC rather than an index ETF for this purpose today.

The post Why I prefer AFIC shares to an ASX 200 index fund today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Keen to bag the next AFIC dividend? Read this
• Is the VAS ETF providing a bigger dividend yield than other ASX 200 index funds?
• Why did the AFIC share price have such a top run in July?
• Why is the AFIC share price outperforming on Monday?

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.

from The Motley Fool Australia https://ift.tt/rsh2Eeg

The S&P/ASX 200 Index (ASX: XJO) dipped in and out of the red over the course of Tuesday before ultimately closing higher, helped along by tech shares. The index was 0.13% higher at 7,029.8 points at the market close.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) was among the top performing sectors today, lifting 1.7%. It was led by the Megaport Ltd (ASX: MP1) share price after the company released its full-year earnings this morning.

S&P/ASX 200 Materials shares also closed in the green after major metals rose overnight. While base metals put out a mixed performance, both gold and iron ore rose.

Gold futures lifted 0.8% to US$1,805.20 an ounce while iron ore futures increased 1.7% to US$110.95 a tonne.

But it was a worse day for the S&P/ASX 200 Financials Index (ASX: XFJ). It plunged 0.8% on Tuesday, with the National Australia Bank Ltd (ASX: NAB) share price coming in as its worst performer. The bank released its quarterly earnings earlier today.

All in all, eight of the ASX 200’s 11 sectors were in the green when the market closed today.

But which share outperformed all others to take out today’s top spot? Let’s take a look.

Top 10 ASX 200 shares countdown

And today’s top-performing ASX 200 share was none other than lithium favourite Lake Resources NL (ASX: LKE). Find out what the company’s been up to lately here.

Today’s biggest gains were made by these ASX shares:

ASX-listed company	Share price	Price change
Lake Resources NL (ASX: LKE)	$1.24	15.35%
Megaport Ltd (ASX: MP1)	$9.00	10.02%
Domain Holdings Australia Ltd (ASX: DHG)	$4.01	8.97%
REA Group Ltd (ASX: REA)	$132.33	6.69%
Nickel Industries Ltd (ASX: NIC)	$1.145	6.02%
News Corporation (ASX: NWS)	$25.70	5.89%
Coronado Global Resources Ltd (ASX: CRN)	$1.60	5.61%
Liontown Resources Limited (ASX: LTR)	$1.695	5.28%
Breville Group Ltd (ASX: BRG)	$23.04	4.21%
Xero Limited (ASX: XRO)	$97.47	3.69%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Coronado Global, Lake, Megaport, and REA shares are storming higher
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• In this most volatile of years, the ASX 200 is within shouting distance of turning positive
• Could this development further energise ASX lithium shares in FY23?
• Here are 2 reasons why I like the Endeavour share price today

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 positions in and has recommended MEGAPORT FPO and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended MEGAPORT FPO and REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/237gpO8

Much of the ASX water cooler talk so far this week has been dominated by copper.

Yesterday, we learned that the mining giant BHP Group Ltd (ASX: BHP) had put in a takeover bid for OZ Minerals Limited (ASX: OZL).

BHP put forward an offer of $25 per share in cash for the company. This was swiftly rejected on valuation grounds.

OZ Minerals is one of the largest copper miners listed on the ASX. It also produces other metals from its mines, including gold and silver.

The fact that BHP is eyeing it off is an interesting insight into the red metal’s appeal and why companies like BHP are desperate to increase their exposure to it.

What is copper?

Copper is an elemental metal. It’s extremely useful for its electrical and heat conductivity and is relatively abundant. A number of metals efficiently conduct electricity, including gold and silver. But copper is in the sweet spot in terms of cost.

It is a lot cheaper to make electrical wiring out of copper than say, gold or silver. And copper is a far better conductor of electricity than other cheaper base metals like steel or aluminium. As such, almost every electronic device in the world uses this metal in some shape or form. 

According to reporting in the Australian Financial Review (AFR), the global investment bank Goldman Sachs is bullish on copper.

Goldman is predicting that just like oil has been in the past, “copper will be at the centre of global competition between Western countries and the emerging autocratic bloc”, as global demand doubles by 2050.

The new oil?

Traditional cars and other road vehicles use very little copper compared to other materials like steel and aluminium.

But for next-generation vehicles that are powered by electric motors driven by rechargeable batteries, rather than burning petrol or diesel, copper is far more applicable. According to the AFR, electric vehicles require four to six times the amount of copper found in traditional internal combustion vehicles.

Not only that, but copper is also a vital ingredient in renewable energy infrastructure like wind farms and solar plants. So this is a metal that is going to play a massive role in the transition to a carbon-free world. That might be why Goldman Sachs is calling copper the “new oil”.

Goldman is predicting a global supply shortage in copper in the years ahead, which will boost the prices that the metal can command.

So it’s perhaps no wonder that BHP is trying to shore up its own operations by buying out OZ Minerals. But perhaps investors should get used to hearing about this red metal. It will certainly be hard to escape if copper does indeed become the new oil.

The post What’s so good about copper anyway? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How are ASX copper shares performing after Monday’s surge?
• What could another acquisition mean for BHP shares?
• OZ Minerals ‘completely in play’: Broker on BHP takeover bid
• 5 things to watch on the ASX 200 on Tuesday
• 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 positions in and has recommended Goldman Sachs. 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.

from The Motley Fool Australia https://ift.tt/1gdbEXC

Rare earths have been getting a lot of mentions lately as demand continues to soar for the group of metals.

This has seen an uptick in demand for rare earths stocks, but not so much for the underlying metals themselves.

Curiously, rare earths actually aren’t all that rare.

They are, however, absolutely critical in the production and manufacture of a broad array of products. These products span segments ranging from defence to convection heating and of course, electric vehicles. Primarily, rare earths are used in magnets for each application.

It should come as no surprise, therefore, to see the boutique and well-known investment advisory firm Jevons Global (JG) laying out its investment thesis on the “rare earths complex” in a recent report.

Rare earths to flourish

In the analysis from JG, Dr Kingsley Jones provides a deeper insight into the functions of rare earths. He describes their critical nature to society, and of course, the value proposition at hand.

Dr Jones notes that whilst China is the number one global producer of rare earths, Australia sits in sixth spot “but ranked as the leading reserve nation amongst the developed world mining jurisdictions”.

As part of the report, JG has developed a core basket of active producers, advanced development projects, and exposure to “promising downstream ventures”.

JG chose companies based on their current production status, on the quality of feasibility studies, and how close they are to a final investment decision.

Within that group, five stocks are listed, and immediately two names stand out.

Why this advisory backs Lynas shares

First is Lynas Rare Earths Ltd (ASX: LYC).

Perhaps one of Australia’s better known rare earths miners, Lynas shares have caught a bid lately following recent company updates.

Last week Lynas announced a $500 million expansion at its Mt Weld operations in Western Australia. Just prior to this, it posted its Q4 FY22 earnings report.

Both updates were received positively by the market.

Meanwhile, JG also names Iluka Resources Limited (ASX: ILU) in its core rare earths basket. Iluka has a unique exposure to the rare earths segment.

It is a major exporter of mineral sands. This is a class of minerals that contains a number of essential ingredients for the manufacture of industrial metals and goods.

It also mines monazie and xenotime, both of which fall under the rare earths umbrella.

“Lynas Rare Earths and Iluka Resources enjoy very strong positions as anchor firms for an integrated mines to metals strategy,” Dr Jones writes in the report.

“Whilst the dominance of these 2 players may distract investor attention from worthy new entrants, we consider the health of the industry will depend on a portfolio approach to investment,” he added.

Lynas and Iluka shares are up 61% and 6% over the past 12 months of trade respectively, as seen below.

The post Why Lynas shares and one other ASX 200 rare earths miner are in this expert’s ‘core basket’ appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why has the Lynas share price surged 22% in the last 3 weeks?
• Here are the top 10 ASX 200 shares today
• Why BWP, Lynas, Pilbara Minerals, and Pinnacle shares are charging higher
• ‘Essential foundation for success’: Lynas share price leaps on $500 million expansion
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Zach Bristow 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.

from The Motley Fool Australia https://ift.tt/vjwWzuS

The S&P/ASX 200 Materials Index is climbing 0.29% today. But what happened to ASX copper shares following yesterday’s explosion?

Copper shares on the market include Oz Minerals Limited (ASX: OZL),  Sandfire Resources Ltd (ASX: SFR), Copper Mountain Mining Corporation (ASX: C6C) and 29Metals Ltd (ASX: 29M).

So how are ASX copper shares performing today?

What’s going on?

Oz Minerals shares have lifted 1% today, while Copper Mountain shares have fallen 3%. Meanwhile, Sandfire Resources shares have dropped 0.62% and 29Metals shares have leapt 0.57%.

The copper price is down 0.4% at the time of writing, trading economics data shows. In the past month, the copper price has lifted 4% but it has fallen nearly 18% in a year.

This follows ASX copper shares exploding yesterday after Oz Minerals rejected a takeover bid from BHP Group Ltd (ASX: BHP). Data out of China also showed copper imports had surged in July compared to the same time last year.

Oz Minerals highlighted it had a unique set of copper and nickel assets, with long-term growth potential. Especially given the world’s tendency toward global electrification and decarbonisation.

In today’s news Commonwealth Bank of Australia (ASX: CBA) analyst Vivek Dah has warned any rebound in copper could be dependent on one major factor. He said, in comments cited by the Australian Financial Review:

If we’re talking about a rebound in copper, it’s going to be conditional on China’s COVID-zero policy being reversed, and we really only see a possibility of that after the National Congress in November after Xi Jinping is voted in for his next term.

Share price snapshot

The Sandfire share price has shed near 25% in the past year, while the Copper Mountain share price has plummeted nearly 40%. Meanwhile, Oz Minerals shares have leapt 14% and 29Metals has lost 29%.

For comparison, the ASX 200 Materials Index has fallen 10% in the past year.

The post How are ASX copper shares performing after Monday’s surge? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• What’s so good about copper anyway?
• What could another acquisition mean for BHP shares?
• OZ Minerals ‘completely in play’: Broker on BHP takeover bid
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares 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.

from The Motley Fool Australia https://ift.tt/ETBswYi

In what might seem like a dream to crypto fans, the Reserve Bank of Australia (RBA) is exploring whether the nation would benefit from a digital form of the Australian Dollar.  

It will be a far cry from the example set by El Salvador. The nation adopted Bitcoin (CRYPTO: BTC) as legal tender in 2021.

Instead, the RBA plans to create its own digital currency, dubbed central bank digital currency (CBDC), as part of a trial. To do so, it’s collaborating with the Digital Finance Cooperative Research Centre (DFCRC).

The pair will work on a pilot that will ultimately see the CBDC used in a ring-fenced environment.

Let’s take a closer look at the RBA’s latest pivot towards cryptocurrency-style tokens.

Could Australia soon have its own crypto-like currency?

Australia’s central bank is looking into creating its own digital currency, testing potential uses and benefits in a pilot program.

However, crypto fans might not want to get too excited. The RBA’s digital currency, unlike cryptocurrency, will be backed by the central bank. Thus, It will work just like the Australian Dollar.

RBA deputy governor Michelle Bullock reportedly told ABC’s The World Today that the pilot’s participants will purchase and use CBDC in a “closed loop” system. She continued:

I suspect where its role might be more important is perhaps in delivery versus payment for physical assets.

Possibly things like property, possibly things like gold — these sorts of things that might give businesses an opportunity to exchange real assets on a digital ledger for currency on a digital ledger.

A project that will oversee the development of the pilot is expected to take around a year.

It will look into innovative uses for a CBDC and business models that could be supported by its issuance. Finally, the project will consider some of the technical, legal, and regulatory considerations associated with a CBDC.

A paper will be published in the next few months further explaining the project. It will also detail how industry participants will be able to engage in the program.

DFCRC CEO Dr Andreas Furche commented on the research project, saying:

CBDC is no longer a question of technological feasibility.

The key research questions now are what economic benefits a CBDC could enable, and how it could be designed to maximise those benefits.

The post Why an RBA-issued crypto-like currency could soon be a reality appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Can the Bitcoin price reach US$30,000 again in 2022?
• Why Bitcoin, Ethereum, and Dogecoin are shooting higher today
• Could this key metric signal more bad news for the Bitcoin price?
• Is it smart to use dollar cost averaging to buy Bitcoin?
• Bitcoin price dips in August after soaring 22% in July. What’s going on?

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 positions in and has recommended Bitcoin. 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.

from The Motley Fool Australia https://ift.tt/gAjxUiX

If you’re looking for exchange traded funds (ETFs) to buy, then you may want to look at the VanEck Vectors MSCI World ex Australia Quality ETF (ASX: QUAL).

This ETF has been rated highly by an expert, particularly in the current economic environment.

Why the VanEck Vectors MSCI World ex Australia Quality ETF?

The VanEck Vectors MSCI World ex Australia Quality ETF could be worth considering thanks to its focus on quality. This is seen as a big positive given the ongoing threat of recessions globally due to rising inflation and increasing rates.

This ETF aims to provide investment returns of the MSCI World ex Australia Quality Index before fees and other costs.

VanEck notes that the index has been created to capture the performance of quality stocks selected from the parent index, MSCI World ex Australia. It does this by identifying companies with high quality scores based on three key fundamental factors: high return on equity; stable year-on-year earnings growth; and low financial leverage.

Companies deemed to be high quality enough to be included in the fund are the likes of Apple, Johnson and Johnson, Mastercard, Microsoft, Nestle, Nvidia, Pfizer, and Visa.

Sarah Gonzales from Apt Wealth is a fan of the ETF. She also told Livewire:

My preferred ETF is the VanEck MSCI International Quality ETF. I think it provides exposure to that quality factor, which tends to outperform in market downturns. It does focus on factors like return and equity, year-on-year growth of earnings and also levels of debt. These are proxies for profitability, earnings variability, and the level of debt of companies. Particularly if we are going into a recession,  I think these are really the factors that I think we should focus on.

The post Expert names one of the best ETFs for ASX investors to buy now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 top ETFs tipped as buys by experts for ASX investors
• I think these 2 ETFs are long-term buys
• Why analysts say these top ETFs are buys

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.

from The Motley Fool Australia https://ift.tt/a0ZvjRI