ASX Large Caps: Oil stocks jump as Brent rises above US$110

It was all about commodities today as the Bloomberg Commodity Spot Index posted its biggest one-day gain in 13 years overnight.

Oil, Gold, Coal all rose as Russia’s escalating attacks on Ukraine caused more problems on the supply side of the market.

The United States and other major economies have announced the release of emergency oil stocks, but traders believe that will not be enough.

Brent crude has now risen above US$110 a barrel as the International Energy Agency warned of a global threat to energy security.

Meanwhile, after jumping more than 2% in January, the benchmark 10-year US Treasury yield fell another 10bp overnight to 1.72% as traders cut bets by a quarter. Fed 50bp hike in March.

Yesterday’s RBA meeting ended with a decision to keep the key rate at 0.1%, saying the conflict in Europe is a “major new source of uncertainty” for the global economy.

On the ASX, investors are now playing on the commodity theme, with the energy and mining sectors rising 4.5% and 2.5% respectively.

The benchmark ASX 200 index rallied after its first losses to end up 0.22%.

BIG CAP WINNERS

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Core Lithium (ASX: CXO) jumped 14.5% after signing a binding terms sheet with Tesla for the supply of lithium spodumene concentrate from its Finniss Lithium project.

Core will supply up to 110 kt of spodumene concentrate to Tesla over 4 years, with prices benchmarked to the market price for spodumene concentrate.

Major oil plays like Woodside (ASX:WPL) and Santos (ASX:STO) increased by more than 5% thanks to oil prices.

BIG LOSERS CAP

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Pointsbet (ASX:PBH) fell another 11% today and fell 27% last month after announcing a $137 million EBITDA loss for the half a few days ago.

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Steve R. Hansen