Company Interview / the COB: reassessing rates

The S&P/ASX 200 rebounded further this Wednesday, to close higher by 0.6% to 8,743.5 points.

Gains in the miners and the banks supported the index, while trading in oil remained choppy as the Wall Street Journal reported the IEA has proposed the largest release of oil reserves in its history. 

The ongoing conflict has also led economists to change their predictions for a March rate hike, with RBA Deputy Governor Andrew Hauser saying failing to act decisively could lead to "toxic" high inflation. ANZ, Westpac, UBS, Citi, Capital Economics and Deutsche Bank now expect a rate hike next week, with money markets suggesting the probability is around 70%. The Aussie dollar shot up to US72c. 

The energy sector closed relatively flat while shares in Karoon gained 1.6% and Woodside was up 0.4%. 

Qantas advanced by 3.2% after the airline confirmed it is raising fares to compensate for jet fuel prices rising 150% since the war began in the Middle East.

Elsewhere, Lynas Rare Earths shot up 16% as it updated its agreement for the supply of rare earths to Japan. 

Macquarie Technology rose 7.8% amid a $200M investment from the National Reconstruction Fund Corporation.

And Rio Tinto secured funding for its Rincon lithium project in Argentina, sending shares up 1.2%. 

US inflation is in focus tonight, along with the country’s crude oil inventories, expected to be much lower than last week.