After a rather volatile session, the ASX 200 nevertheless finished marginally up overnight by 24.2pts or 0.33% to 7,253.3. Overall, markets have been stagnating all week after several weeks of gains. Around 44% of stocks, and 4 sectors gained ground.

An increase in the iron ore price helped the mining sector rise 1.7%, with Rio Tinto (+2.5%), BHP (+2.5%) and Fortescue Metals (2.21%) all sharing gains. 

The materials and energy sectors were also buoyed by rising iron ore prices, after both starting the session in negative territory. Materials finished up 1.7% and energy closed flat for the day. With an Australian inflation update due tonight, the Aussie dollar might face some volatility, as inflation is expected to increase to 7.3%. Currently the AUD/USD is hovering just below the $0.67 mark.

While iron ore prices have risen to above $100 for the first time since September, China unrest could still reverse these gains, despite COVID-19 infections dropping on Monday. A wave of protests against the tough COVID-19 restrictions in China has been a factor in global stocks moving lower.

Locally, the monthly consumer price index for October will be issued later today. This is a new monthly measure of Australian inflation with economists divided in what the numbers will show. Expected figures range from as low as 7.3%, which would be flat for the year, to 7.8%. Note that the data does not cover the full weight of the quarterly consumer price index.

This week in the U.S, investors are focussed on a speech from Fed chairman, Jerome Powell tonight and the November job report on Friday. The S&P and Nasdaq closed lower for the third straight day, in anticipation of Powell’s speech. 

Today, local markets are expected to open softer, with Wall Street modestly lower overnight.

With the high volatility we are seeing in the markets currently, this presents plenty of trading opportunities, particularly in the short-run for day traders. While stability in market movements is great, there is just as much to gain in volatile conditions, provided we can predict the moves.

We have an upcoming webinar with a junior gold explorer that was recognised as one of the most successful IPOs of 2022. Far East Gold (ASX: FEG) is led by some of the biggest names in Australian mining, including Justin Werner, Managing Director of Nickel Industries (ASX: NIC) and is the first company to drill into one of southeast Asia’s most highly prospective projects.

On Friday, 2nd December at 12pm (AEDT), we will be joined by Chairman Paul Walker who will provide an update on the company’s current activities, including a recent important update on their highly prospective Woyla project, and their plans for 2023. This will be a fascinating conversation for potential investors. Click here to attend.

Reach Corporate provides Corporate Advisory Services, including managing investor communications on behalf of Far East Gold Ltd and will receive fees for its services.

Past performance is not a reliable indicator of future performance.