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The Archer Materials Ltd (ASX: AXE) share price reached an all-time high in intraday trade today. This came after the semiconductor company announced it has been granted a new South Korean patent.

In late afternoon trade, Archer shares were swapping hands for $1.665 apiece — a new record. By the final bell, they had partially retreated to $1.61, a 12.94% gain on yesterday’s closing price.

Archer adds to its intellectual property portfolio

Investors are pushing the Archer share price higher after digesting the company’s positive update.

According to its release, Archer has been granted a patent associated with its CQ quantum computing chip technology.

The KR patent (No. 10-2288974) is considered a significant commercial milestone in the company’s efforts to access global markets.

South Korea is regarded as a leading manufacturer and exporter of semiconductor chip devices. Conglomerates such as Samsung Electronics and SK Hynix are ranked among the top producers in the world.

Achieving patent approval is a giant leap for the company. The Korean Intellectual Property Office has more than 1 million patents and thoroughly examines each patent before consent.

Together with the United States and China, South Korea is one of the most competitive jurisdictions for patent granting.

As such, the granting of the patent gives Archer access to a high-performing economy to explore sales opportunities within the country.

South Korea committed to investing US$450 billion in the industry through to 2030. Most of these funds came from Samsung Electronics and SK Hynix, US$150 billion and US$200 billion, respectively.

CEO Dr Mohammad Choucair commented on the news which could be affecting the Archer share price:

Archer’s quantum computing chip IP is now well protected in South Korea – home to some of the world’s largest chipmakers, and a critical part of the global semiconductor supply chain.

We now have CQ chip patents granted in Japan and South Korea, with patent applications in the US, China, and Europe progressing well… South Korea’s semiconductor industry is one of the world’s best, while Asia as a whole dominates in semiconductor manufacturing, where close to 80% of all chips are produced.

The patent is valid until December 2036.

Archer share price snapshot

Shareholders would be ecstatic with the Archer share price since the beginning of 2021.

The company’s share price has gained more than 200% year-to-date, reflecting strong optimism in Archer’s progress in developing its CQ chip.

The post Why the Archer Materials (ASX:AXE) share price rocketed 13% today appeared first on The Motley Fool Australia.

More reading

• The Archer Materials (ASX:AXE) share price is up 60% in a month to a record high
• Why the Archer Materials (ASX:AXE) share price is up 30% in a week
• Why the Archer Materials (ASX:AXE) share price is surging 12% higher

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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The basket of S&P/ASX 200 Index (ASX: XJO) gold shares has slipped into the red during today’s session.

And looking beyond the ASX 200, to the 27 ASX-listed gold shares with a market capitalisation of over $200 million, the average loss today is 1.47% and the median loss is 1.5% (at the time of writing).

What’s impacting ASX 200 gold shares today?

Firstly, the spot price of gold is down around 5% over the past month and a similar amount over the past six months, extending the loss over the past year to approximately 15%.

Moreover, the spot price of gold took a 3–4.5% dip over the past two days, with the yellow metal now trading at $1,736 per ounce.

There is a high correlation between the price of gold and ASX 200 gold shares, as can be gleaned from the chart below. That is, the pair tend to move in a relatively similar fashion. The chart highlights the single year performance of the S&P/ASX All Ordinaries Gold Index (ASX: XGD) versus the iShares Gold Trust.

For context, according to the issuer iShares, its Gold Trust “seeks to reflect generally the performance of the price of gold” whereas the All Ords’ Gold index “is a benchmark for Australian gold companies”. Therefore, both are acceptable proxies for our analysis.

Correlation between ASX Gold shares and price of gold, last 12 months

Source: Google Finance

Notice the synchronised movement (movement, not actual price) in the pair’s price returns over the last year, for instance.

Adding weight to this correlation is the underperformance of key ASX gold shares today.

To illustrate, Newcrest Mining Ltd (ASX: NCM), Evolution Mining Ltd (ASX: EVN), Northern Star Resources Ltd (ASX: NST) and St Barbara Ltd (ASX: SBM) shares have all slipped into the red today, amid many other well-known names.

For comparison, the S&P/ASX 200 Index has climbed about 0.2% into the green during today’s session.

Therefore, given the correlation between gold spot and ASX gold shares, it stands to reason that this recent volatility will have some bearing on the ASX gold basket’s price action today.

What about inflation?

Inflation is certainly a contentious issue in the global economy at the moment, with commentary from both sides around the globe weighing in on the debate.

For instance, discussions on “inflation” were at a record high among S&P 500 company earnings calls this quarter, increasing 900% year on year, according to Bank of America.

Gold has traditionally been viewed as a reasonable hedge against inflation. However, data shows the correlation of gold to inflation has been historically low over the past 50 years, at only 16%. A correlation of 50–100% is considered statistically significant.

Next, central banks use their position in the marketplace to regulate factors such as inflation and interest rates.

In fact, one of the Reserve Bank of Australia (RBA)’s primary functions is to maintain inflation within a range of 2–3%.

In order to achieve this, the RBA utilises its position in the money markets to indirectly increase interest rates, which flows on to contain the fire of inflation in the real economy.

What about interest rates and ASX gold shares?

A hike to interest rates is generally seen as a headwind to gold prices as investors seek yield in higher rewarding asset classes, such as fixed income.

The RBA’s posture has been to hold rates down since 2020, even throughout the COVID-19 pandemic. For instance, the RBA has stated the cash rate will remain flat at 0.1% until 2024 at the current trajectory.

However, the Commonwealth Bank of Australia (ASX: CBA), amongst other banks, predicts this rise will occur sooner. CBA just adjusted its 2-year and 4-year mortgage rates to reflect its viewpoint, the third increase this year.

Given the bank’s move, it is not unreasonable to expect other financial institutions to follow suit, thereby acting on their conviction.

Therefore, it stands to reason that the recent selloff in ASX gold shares is somewhat impacted by the uncertainties on interest rates in the economy.

Foolish takeaway

ASX Gold shares have had a rough day on the back of headwinds in the underlying gold markets and in the real economy.

Gold prices are sensitive to market forces such as interest rates and often there is a conception that gold, on its own, is a reasonable hedge against inflation. There is debate on whether it is or not.

As the uncertainties on interest rates continue in Australia, this may have some bearing on ASX gold shares as we walk through the remainder of 2021.

The post What’s up with ASX 200 gold shares on Tuesday? appeared first on The Motley Fool Australia.

More reading

• Why the St Barbara (ASX:SBM) share price is sliding 4%
• 3 high conviction ASX 200 shares that could be buys this August
• 5 things to watch on the ASX 200 on Tuesday
• Why ELMO, Flight Centre, Northern Star, & Regis shares are dropping
• ASX 200 Weekly Wrap: Blockbuster Afterpay deal turbocharges ASX to new record highs

The author Zach Bristow has no positions 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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) went up by 0.3% to 7,563 points.

Here are some of the highlights from the ASX today:

James Hardie Industries plc (ASX: JHX)

The James Hardie share price went up 3% today after releasing its result for the first quarter of FY22.

In the first three months of the financial year, to 30 June 2021, it saw total net sales increase by 35% to US$843.3 million. Net profit surged 1,191% higher to US$121.4 million. Global adjusted earnings before interest and tax (EBIT) increased 45% to US$180.5 million with the adjusted EBIT margin rising 150 basis points to 21.4%.

The North American and Asia Pacific divisions were what drove the EBIT higher. The North America division saw adjusted EBIT grow 29% to US$169.3 million and Asia Pacific adjusted EBIT rose 50% to A$50.4 million.

James Hardie CEO Dr Jack Truong said:

I am very pleased that this first quarter marked our ninth consecutive quarter of delivering growth above market and strong returns. In our investor day at the end of May, we described our three critical initiatives for FY22 through to FY24: One, market directly to homeowners to accelerate demand creation, two, penetrate and drive profitable growth in existing and new segments and, three, commercialise global innovations by expanding into new categories. Further, we discussed our focus on driving a high value product mix in all three regions.

The company raised its guidance for FY22. It’s now expecting adjusted net income to be between US$550 million to US$590 million, up from the previous guidance of US$520 million to US$570 million. That compares to FY21 adjusted net income of US$458 million.

The James Hardie share price was one of the better performers in the ASX 200.

Challenger Ltd (ASX: CGF)

The Challenger share price went up more than 1% after the annuity business released its FY21 result.

It said that group assets under management (AUM) grew by 29% to $110 billion, with life book growth of 14% and funds management net flows of $16 billion.

The company said that its profit was within its guidance range. Normalised net profit before tax was $396 million, down 22%, reflecting a proactive decision to maintain more defensive portfolio settings during the pandemic.

It generated a statutory net profit after tax of $592 million, which included positive investment gains.

Challenger said that it has a strong capital position, with Challenger Life having $1.6 billion of excess regulatory capital.

The full year dividend was increased by 14% to 20 cents per share.

Challenger managing director and CEO Richard Howes, said:

This year, we have taken decision action to set up the business for future growth – executing our strategy to diversify revenue, repositioning our investment portfolio and strengthening our balance sheet.

Following our decision to reposition the investment portfolio during the early stages of the pandemic, as flagged, we gradually deployed significant cash balances into higher returning assets throughout the year, with the full benefits to be realised next year.

Mr Howes also announced his intention to retire, set for March 2022. 

Megaport Ltd (ASX: MP1)

Megaport was another ASX 200 share to report its result to investors today. The Megaport share price increased by 3%.

It said that annual revenue increased by 35% to $78.28 million, whilst customers went up 24% to 2,285.

Monthly recurring revenue (MRR) for the month of June 2021 was $7.5 million, an increase of 32% year on year.

Megaport said that it generated a profit after direct network costs during the year of $42.1 million, an increase of 43% year on year. It achieved breakeven earnings before interest, tax, depreciation and amortisation (EBITDA) in June 2021.

The Asia Pacific region saw a profit after direct network costs margin of 73%.

However, the bottom line for the year was a net loss of $55 million. It finished with a cash position of $136.3 million.

It’s planning to continue to invest for growth of its market share, invest in its product and service, and invest in its people.

The ASX 200 company also announced the acquisition of InnovoEdge for up to US$15 million, including US$7.5 million of cash. It was described as an AI-powered, multicloud and edge application orchestration company. 

The post ASX 200 rises, Challenger and James Hardie up on results appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• These 3 ASX 200 shares were the most traded this Tuesday
• Why ASX lithium shares are surging to new highs today
• Why BlueBet, James Hardie, Megaport, & Novonix shares are racing higher
• ASX 200 midday update: James Hardie hits record high, Pilbara Minerals rockets

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Today, the S&P/ASX 200 Index (ASX: XJO) finished the day in the green. The benchmark index added 0.32%, climbing to 7,562.6 points.

The question is: which shares delivered the most generously to investors on the ASX today? Here are the ten stocks that rose to the occasion:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Pilbara Minerals Ltd (ASX: PLS) was the biggest gainer today. Shares in the company increased 11% following a push for further electrification on the back of the latest IPCC climate report. Find out more about Pilbara Minerals here.

The next biggest gaining ASX share today was PointsBet Holdings Ltd (ASX: PBH). The sports betting company surged 10.2% to $11.17. Uncover the latest PointsBet details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Pilbara Minerals Ltd (ASX: PLS)	$2.33	10.95%
PointsBet Holdings Ltd (ASX: PBH)	$11.14	9.86%
Orocobre Ltd (ASX: ORE)	$9.33	8.74%
Galaxy Resources Ltd (ASX: GXY)	$5.30	8.61%
Whitehaven Coal Ltd (ASX: WHC)	$2.30	5.99%
Zimplats Holdings Ltd (ASX: ZIM)	$24.70	4.09%
Sims Ltd (ASX: SGM)	$16.12	3.4%
Afterpay Ltd (ASX: APT)	$143.27	3.24%
Netwealth Group Ltd (ASX: NWL)	$15.89	2.98%
James Hardie Industries PLC (ASX: JHX)	$49.32	2.90%

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

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

More reading

• These 3 ASX 200 shares were the most traded this Tuesday
• Here’s why ASX 200 lithium shares surged higher on Tuesday
• Which shares are leading the ASX 300 on Tuesday?
• Why ASX lithium shares are surging to new highs today
• Pilbara Minerals (ASX: PLS) share price up 9% to all-time high

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Netwealth, and Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Netwealth. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is having a decent, if not inspiring, day of trading this Tuesday. At market close, the ASX 200 is a fair 0.32% to 7,563 points after making a fresh new all-time high of 7,576.3 points earlier this morning.

But let’s now take a deeper look into the ASX 200 shares that are topping the charts today in terms of trading volumes.

3 ASX 200 shares flying around the markets today

Telstra Corporation Ltd (ASX: TLS)

Our first ASX 200 share is the telco giant Telstra. Today, a hefty 13.1 million telstra shares traded on the share market.

This is probably a result of the telco hitting a new 52-week high this morning. Telstra shares rose all the way up to $3.88 a share earlier today, before subsequently cooling off a little. Telstra finished the day at $3.86, up a still-robust 0.92% for the day.

Novonix Ltd (ASX: NVX)

ASX 200 graphite and battery company Novonix is next up on this list. This materials share has had a dramatic resumption of trading today after a recent share price halt. After outlining a capital raising program and an investment by the US oil giant Phillips 66 (NYSE: PSX), the Novinix share price resumed trading today.

And it was something to behold. At market close, Novonix shares finished at $3.43 a share, up 13.58%. This is probably the reason why a substantial 14.7 million NVX shares traded today.

Pilbara Minerals Ltd (ASX: PLS)

And last but certainly not least we have ASX 200 lithium producer Pilbara Minerals. Pilbara tops the ASX 200 charts today in terms of trading volume – and by a mile too. A staggering 33.7 million Pilbara shares were traded today.

Once again, this seems to be the result of a dramatic jump in this company’s valuation today. At market close, Pilbara finished up a whopping 10.95% higher to $2.33 a share. This seems to be in response to some love from broker JPMorgan, which has upgraded its outlook on the entire ASX lithium sector.

The post These 3 ASX 200 shares were the most traded on the share market this Tuesday appeared first on The Motley Fool Australia.

More reading

• Here’s why ASX 200 lithium shares surged higher on Tuesday
• Which shares are leading the ASX 300 on Tuesday?
• Why ASX lithium shares are surging to new highs today
• The Telstra (ASX:TLS) share price just hit another new 52-week high
• Why BlueBet, James Hardie, Megaport, & Novonix shares are racing higher

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen owns shares of JPMorgan Chase and Telstra Corporation 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 owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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S&P/ASX 200 Index (ASX: XJO) lithium shares soared today amid the release of a report magnifying the risks of climate change. The report looks set to recharge the global push towards renewable energy.

Shares in both Galaxy Resources Limited (ASX: GXY) and Orocobre Limited (ASX: ORE) finished the day trading more than 8% higher than their previous closing prices. But it was Pilbara Minerals Ltd (ASX: PLS) who led the pack. Its share price gained 10.95% on Tuesday.

And while it’s not part of the ASX 200, fan favourite Vulcan Energy Resources (ASX: VUL) shares also gained 6.94%.

It’s difficult to say what caused the gains.

However, they might have been tied to renewed interest in fighting climate change, driven by a worrying report out of the Intergovernmental Panel on Climate Change (IPCC). Or, perhaps, by JPMorgan’s enthusiasm for lithium.

Let’s take a closer look at what might be making the market excited about ASX 200 lithium shares.

What drove ASX 200 lithium shares higher on Tuesday?

IPCC report

First off the bat is the report released by the IPCC today that United Nations secretary-general António Guterres described as “a code red for humanity”.

The report found in order to limit global warming to 1.5 degrees, we need to reduce our use of fossil fuels.

It also found Australia is already affected by climate change. Our shorelines are eroding and our fire seasons are becoming more deadly. These trends are set to worsen if carbon emissions aren’t limited, the report found.

Of course, that may have pushed the conversation towards topics like electric vehicles and lithium-ion battery power.

Lithium is crucial in the push for renewable energy storage. To many, it also presents a way of lessening the world’s reliance on fossil fuels.

Maybe talk of the future helped push ASX 200 lithium shares higher today.

Bullish on lithium

Additionally, ASX 200 lithium shares may have been boosted by JPMorgan’s lithium outlook.

As The Motley Fool Australia reported earlier today, the broker foresees a bright future for lithium producers.

JPMorgan also upped its long-term lithium spodumene price by 31%. It expects it to reach $850 per tonne in the future.

The post Here’s why ASX 200 lithium shares surged higher on Tuesday appeared first on The Motley Fool Australia.

More reading

• Which shares are leading the ASX 300 on Tuesday?
• Why the Orocobre (ASX:ORE) share price is up 9% to an all-time record high on Tuesday
• Why ASX lithium shares are surging to new highs today
• Pilbara Minerals (ASX: PLS) share price up 9% to all-time high
• ASX 200 midday update: James Hardie hits record high, Pilbara Minerals rockets

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 Bruce Jackson.

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The Zip Co Ltd (ASX: Z1P) share price was on form again on Tuesday and continued its positive run.

The buy now pay later (BNPL) provider’s shares climbed 1.5% to end the day at $7.99.

This latest gain means that the Zip share price is now up an impressive 20% since the start of the month.

Why is the Zip share price up 20% in 10 days?

Investors have been bidding the Zip share price higher this month following news that rival Afterpay Ltd (ASX: APT) is to be acquired by US payments giant Square.

This has sparked hopes that Zip may also receive a takeover approach of its own in the near future. Particularly given how another larger BNPL rival, Klarna, is rumoured to have been building up a strategic stake in the company.

Is it too late for investors to buy its shares?

The good news is that the team at Citi still see a fair bit of value in the Zip share price at the current level.

This month the broker retained its buy rating and $8.90 price target on the company’s shares. This is despite its belief that the Afterpay-Square deal has mixed implications for Zip.

Commenting on the news, Citi said: “We see mixed read-throughs for Zip from Square’s takeover of Afterpay – on the one hand it increases the takeover appeal for Zip, especially given the fast growing US business. However, arguably the Afterpay sale speaks to the importance of scale especially given increasing competition and our concern is that the combination of Square and Afterpay increases the medium-term risk for Zip given it increases.”

Based on the current Zip share price of $7.99, Citi’s price target implies potential upside of just over 11% over the next 12 months.

The post Up 20% in 10 days: Can the Zip (ASX:Z1P) share price keep rising? appeared first on The Motley Fool Australia.

More reading

• Afterpay and Zip were among the most traded ASX shares last week
• Why is this fund holding onto its Afterpay (ASX:APT) shares?
• Bank dividends to rise, and Climate Change in focus. Scott Phillips on Sky News First Edition
• Why we just sold all our Afterpay (ASX:APT) shares
• Here are the 10 top moving ASX shares on Monday

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 and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Tempus Resources Ltd (ASX: TMR) share price stormed more than 14% higher in Tuesday’s session.

Shares in the gold explorer received a boost after the company released promising drill results.

Let’s take a look at what Tempus announced.  

Tempus share price soars on drill results

The Tempus share price is flying after releasing the first assay results from its 2021 drilling program at Elizabeth Gold Project in Canada.

In particular, the company noted a bonanza-grade intersection in hole EZ-21-04.

According to Tempus, the intersection returned 4 metres at 31.2 grams per tonne of gold from 122 metres. This included 1.5 metres at 52.1 grams per tonne of gold from 123 metres and 0.50 metres at 72 grams per tonne of gold from 124 metres.

EZ-21-04 is part of a group of the first four drill-holes of the 2021 program, which were designed to intersect ore shoots at the southwest vein at Elizabeth.

Tempus noted that 14 drill holes have been completed so far at Elizabeth with multiple assays pending.

Tempus President and CEO Jason Bahnsen commented:

Drilling at Elizabeth continues to generate very high-grade intersections over robust widths. We will be receiving further assay results soon and we’re very excited to see the results as we continue to expand the Elizabeth resource envelope.

Tempus’ update noted that the company’s technical team continue to be encouraged by what they are seeing in the drill core. Meantime, drilling continues to systematically explore down dip of the southern and northern ore shoots as well as drill testing along strike to the north.

More on the Tempus share price

Tempus is a dual-listed gold explorer with active exploration projects in Australia, Canada and Ecuador.

The company’s flagship project is its Blackdome-Elizabeth Gold Project located in Southern British Columbia. Tempus is currently midway through its drill program at the site.

The Tempus share price received a boost recently after the company reported positive survey results early last week.

Shares in the gold explorer have been rather volatile in 2021. Including today’s price action, the Tempus share price is around 10% higher for the year.

At market close on Tuesday, shares in Tempus are 10.42% higher for the day at 26.5 cents. The Tempus share price was up more than 14% earlier in the session, hitting an intra-day high of 27.5 cents.

The post Tempus Resources (ASX:TMR) share price up 14% on drill results appeared first on The Motley Fool Australia.

More reading

• Tempus Resources (ASX:TMR) share price jumps 19% on survey results

Motley Fool contributor Nikhil Gangaram 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 Bruce Jackson.

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On Monday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Aurizon Holdings Ltd (ASX: AZJ)

According to a note out of Morgan Stanley, its analysts have downgraded this rail freight operator’s shares to an underweight rating and cut the price target on them to $3.92. This is despite Aurizon delivering a full year result ahead of its expectations and its belief that its outlook is positive. The reason for Morgan Stanley’s bearish stance is the company’s exposure to fossil fuels. It fears this will weigh on the performance of its shares as many investors exclude it from investment mandates for ESG reasons. The Aurizon share price is trading at $3.99 today.

Bendigo and Adelaide Bank Ltd (ASX: BEN)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating but increased their price target on this regional bank’s shares to $10.40. Although Morgan Stanley is expecting a strong result from the bank this month, it isn’t enough for a change of rating. It expects FY 2022 to be a tougher year and feels its shares are expensive at the current level. The Bendigo and Adelaide Bank share price is fetching $10.86 on Tuesday.

Macquarie Group Ltd (ASX: MQG)

Analysts at Citi have retained their sell rating and $140.00 price target on this investment bank’s shares. According to the note, the broker has been pleased with Macquarie’s performance this year and expects a strong profit in FY 2021. However, it has concerns over the sustainability of its earnings. As a result, it doesn’t see enough value in its shares at the current level to warrant a more positive rating. The Macquarie share price is trading at $159.07 today.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• Why Aurizon, Brainchip, Ramelius, & Transurban shares are dropping
• Is now a good time to buy Bendigo and Adelaide Bank (ASX:BEN) shares?
• If you invested $1,000 in Macquarie (ASX:MQG) shares a decade ago, here’s what it would be worth now
• Aurizon Holdings (ASX:AZJ) share price wobbly on FY21 earnings
• ASX 200 Weekly Wrap: Blockbuster Afterpay deal turbocharges ASX to new record highs

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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Aurizon Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The latest findings from the most comprehensive climate report released to date have rattled ASX 200 shares today. What has been described as a ‘code red for humanity’, the report produced by the Intergovernmental Panel on Climate Change (IPCC) has unearthed some concerning conclusions.

What is the climate report and what does it say?

In short, the latest IPCC report is not good news for the environment. The report estimates that global warming will reach 1.5 degrees Celsius by 2030 based on our current trajectory. Additionally, the study found that global temperatures have increased by 1.1 degrees since the industrialisation period. Unfortunately, Australia is even worse than the global average, with a 1.4 degree elevation.

Key takeaways:

• Global temperatures likely to increase 1.5 degrees Celsius by 2030 without action,
• Reforestation and carbon removal would be needed to get back under 1.5 degrees,
• Severe draughts, floods, and fires expected to increase,
• Australia needs to aim for Net-zero in the 2030s,
• Call for no more oil, coal, or gas exploration or infrastructure.

Eerily, the IPCC’s climate report lands as catastrophic wildfires tear through Greece.

Why does this matter for ASX 200 shares

This could have a significant impact on the Australian share market, with many companies having exposure to natural resources reliant industries such as coal mining, oil drilling, and gas extraction, which are all energy-intensive activities with high carbon emissions.

ASX 200 shares such as Santos Ltd (ASX: STO), Woodside Petroleum Limited (ASX: WPL), and Ampol Ltd (ASX: ALD) are all being sold off today following the news.

Professor Lesley Hughes, who is a Pro-Vice-Chancellor and biologist at Macquarie University, said:

There must be no new oil, coal or gas exploration or infrastructure. We have got to stop subsidising fossil fuels. We’ve got to electrify everything and then run everything from renewable energy. We’ve got to change our diets.

Similarly, United Nations secretary-general Antonio Guterres highlighted there should not be any new coal plants built after this year. Meanwhile, the existing coal plants should be phased out by 2030 in OECD countries.

Obviously, if tighter regulations are put on oil, gas, and coal companies, this would likely cause pressure on the share prices of ASX companies in those industries.

On the other hand, Guterres also said, “By 2030, solar and wind capacity should quadruple and renewable energy investments should triple to maintain a net-zero trajectory by mid-century.”

Such a rapid growth proposition could create a positive tailwind for renewable companies. Some ASX shares outside the top 200 that are geared towards renewables are enjoying a boost today. These names include Calix Ltd (ASX: CXL), Lion Energy Ltd. (ASX: LIO), and Genex Power Ltd (ASX: GNX)

The post What could the latest climate report mean for ASX 200 shares? appeared first on The Motley Fool Australia.

More reading

• Santos (ASX:STO) share price slides as UN calls “death knell” on fossil fuels
• Woodside (ASX:WPL) share price struggles amid climate ‘code red’
• 5 things to watch on the ASX 200 on Tuesday
• Santos (ASX:STO) share price lower amid fresh revelations
• Woodside (ASX:WPL) share price edges higher despite falling oil price

Motley Fool contributor Mitchell Lawler owns shares of Genex Power 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 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 Bruce Jackson.

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