Lunch Wrap: ASX powers ahead after core inflation slides into RBA target zone

Inflation’s cooling but still sticky, keeping rate cut hopes alive; meanwhile Trump’s back throwing punches at the Fed.

ASX pares gains as rate cut bets hold strong. Picture via Getty Images

• Aussie inflation back in the zone

• ASX pares gains as rate cut bets hold strong

• Trump swings at the Fed boss again

The ASX 200 was up 0.2% by late morning Wednesday, paring back earlier gains after fresh inflation data landed just a touch hotter than expected.

Headline inflation rose 0.9% in the March quarter, higher than the 0.8% economists tipped, while annual CPI held steady at 2.4%.

Not a blowout, but enough to make markets twitch.

But here’s the good news: for the first time since 2021, core inflation – the RBA’s preferred yardstick – is finally back in the target range of 2 to 3%.

It came in at 2.9% year-on-year. Still a little sticky, but heading in the right direction.

The Aussie dollar nudged higher on the news. Aussie bond yields crept up, too (bond prices lower).

But even so, the money market still tells us the RBA will still move ahead with a rate cut in May, with a 98% chance of a 25 basis point trim.

All eyes now turn to retail sales due Friday, which will show whether Aussie consumers are still spending or starting to tighten up.

There’s also the federal election this weekend, just to keep things interesting.

Meanwhile, over in the States last night, Donald Trump is back on the mic, and back bashing Fed boss Jerome Powell.

Speaking at a rally in Michigan marking his 100th day back in office, Trump said, “Inflation is basically down and interest rates came down despite the fact that I have a Fed person who’s not really doing a good job.”

“You’re not supposed to criticise the Fed,” he added, “but I know much more than he does about interest rates."

Back on the ASX, it was a mixed bag.

Early gains faded after the CPI numbers, but rate-sensitive sectors like tech held up.

Defensive names didn’t fare as well. Utilities took a hit, with Origin Energy (ASX:ORG) sliding more than 2%.

Source: Market Index

Source: Market Index

In large caps news, gold producer Ora Banda (ASX:OBM) dropped 5% after slashing its production guidance for FY25.

Champion Iron (ASX:CIA) fell 2% despite posting record March-quarter sales, while Alcoa Corporation (ASX:AAI), the aluminium giant, slipped 1.5% after a Spanish power outage hit its operations.

And, Woodside Energy Group (ASX:WDS) has locked in a big deal with BP, signing a long-term agreement to supply gas to its $27 billion Louisiana LNG project. WDS shares fell 0.5%.

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for April 30 :

Security	Description	Last	%	Volume	MktCap
MOM	Moab Minerals Ltd	0.002	50%	245,980	$1,733,666
JLL	Jindalee Lithium Ltd	0.585	43%	423,814	$30,172,658
WOA	Wide Open Agricultur	0.037	35%	32,227,195	$14,409,538
ERA	Energy Resources	0.002	33%	3,517,904	$608,094,361
AZL	Arizona Lithium Ltd	0.007	30%	1,151,832	$22,809,073
CYQ	Cycliq Group Ltd	0.003	25%	249,999	$921,033
ERL	Empire Resources	0.005	25%	500,000	$5,935,653
OVT	Ovanti Limited	0.005	25%	4,047,687	$10,806,191
TEM	Tempest Minerals	0.005	25%	55,324	$2,538,119
NMT	Neometals Ltd	0.077	20%	1,281,797	$49,243,205
BMR	Ballymore Resources	0.120	20%	182,966	$17,673,059
RIM	Rimfire Pacific	0.024	20%	6,062,522	$50,357,878
SKK	Stakk Limited	0.006	20%	4,132	$10,375,398
TMX	Terrain Minerals	0.003	20%	1,000,000	$5,008,892
SCN	Scorpion Minerals	0.020	18%	370,695	$8,908,955
AKN	Auking Mining Ltd	0.007	17%	500,000	$3,448,673
AUR	Auris Minerals Ltd	0.007	17%	14,000	$2,859,756
CRR	Critical Resources	0.004	17%	1,019,002	$7,842,664
NWM	Norwest Minerals	0.014	17%	3,226,872	$5,821,434
AMO	Ambertech Limited	0.180	16%	190,457	$14,787,741
CYM	Cyprium Metals Ltd	0.022	16%	3,039,437	$39,210,806
REM	Remsensetechnologies	0.060	15%	1,059,555	$8,696,167
LAT	Latitude 66 Limited	0.061	15%	428,928	$7,600,237
FLC	Fluence Corporation	0.054	15%	1,059,723	$50,805,421

Wide Open Agriculture (ASX:WOA) has signed a deal with Univar Solutions China, naming it the exclusive distributor of its lupin protein products across mainland China. Univar’s no small player, it’s the second-biggest ingredient distributor in the world, pulling in over $11 billion in sales last year. Under the deal, Univar has agreed to buy at least 50 tonnes of lupin protein over 12 months (after a 6-month prep phase), with pricing to be sorted between the two.

Arizona Lithium (ASX:AZL) is powering ahead with its Prairie Project in Canada, locking in approvals to kick off brine production and raising $1.3 million to fund its first facility. It’s also reworking plans at Big Sandy alongside key shareholder NTEC. With DLE tech in hand and the lithium market tipped to bounce back, AZL reckons it’s in prime position to make a splash.

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks for April 30 :

Code	Name	Price	% Change	Volume	Market Cap
ICU	Investor Centre Ltd	0.001	-50%	103,990	$609,023
IVT	Inventis Limited	0.010	-38%	51,005	$1,222,790
EEL	Enrg Elements Ltd	0.001	-33%	6,454,216	$4,880,668
WEL	Winchester Energy	0.001	-33%	100,000	$2,044,528
3DP	Pointerra Limited	0.062	-25%	7,657,217	$66,821,374
1TT	Thrive Tribe Tech	0.002	-25%	3,075,017	$4,063,446
88E	88 Energy Ltd	0.002	-25%	1,909,621	$57,867,624
CT1	Constellation Tech	0.002	-25%	1,000,000	$2,949,467
M2R	Miramar	0.003	-25%	5,000,012	$3,987,293
QXR	Qx Resources Limited	0.003	-25%	1,560,322	$5,241,315
RFA	Rare Foods Australia	0.006	-25%	361,486	$2,175,866
TFL	Tasfoods Ltd	0.003	-25%	60,261	$1,748,382
TMS	Tennant Minerals Ltd	0.007	-22%	2,768,978	$8,603,014
ODE	Odessa Minerals Ltd	0.006	-21%	1,829,889	$11,196,728
BLZ	Blaze Minerals Ltd	0.002	-20%	300,000	$3,917,370
HLX	Helix Resources	0.002	-20%	160,999	$8,410,484
MGU	Magnum Mining & Exp	0.004	-20%	139,999	$4,046,807
MMR	Mec Resources	0.004	-20%	1,000,000	$9,248,829
PHL	Propell Holdings Ltd	0.008	-20%	125,431	$2,783,381
MAP	Microbalifesciences	0.185	-18%	559,491	$100,766,695
CUF	Cufe Ltd	0.005	-17%	50,000	$8,079,449
IMI	Infinitymining	0.010	-17%	1,009,090	$5,076,189
MRD	Mount Ridley Mines	0.003	-17%	100,000	$2,335,467
SER	Strategic Energy	0.005	-17%	3	$4,026,200

IN CASE YOU MISSED IT

Hot Chili (ASX:HCH) has taken a step toward obtaining priority status for both its Costa Fuego copper-gold project and Huasco water project in Chile, after securing registration with the Office for Sustainable Project Management of the Chilean Ministry of Economy. Both projects fulfilled key requirements to be considered in the government’s list of strategic investment projects to be expedited through a streamlined approval process.

In an effort to focus resources on the flagship Yarramba uranium project, Koba Resources (ASX:KOB) has entered into agreements to offload 100% of its interest in the Harrier uranium project in Newfoundland and Labrador to Azincourt Energy Corp in return for C$50,000 and 30m Azincourt shares.

Silver Mines (ASX:SVL) submitted an application with the Department of Planning, Housing and Infrastructure to determine whether a transmission line to power the Bowdens Silver project forms part of a single proposed development in an ongoing effort to reinstate development consent for the project. The development application itself remains alive, with the final decision to be made by the consent authority, the NSW Independent Planning Commission.

Refurbishment of the Casposo toll milling track is on schedule, supporting a binding agreement between Challenger Gold (ASX:CEL) and the plant operator to process a minimum of 450,000t of material from the Hualilan gold project over three years. CEL is looking to capitalise on current high gold prices.

At Stockhead, we tell it like it is. While Hot Chili, Koba Resources, Silver Mines and Challenger Gold are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Lunch Wrap: ASX powers ahead after core inflation slides into RBA target zone