Daily FNArena News - Australia

Australian inflation has gone (cheap) bananas to provide a surprisingly benign CPI result which will guarantee a May rate cut. Economists are now talking another cut in June.

Another disappointing sales results has brokers arguing whether the sun is about to come out again for Australia’s once dominant staple retailer, or not.

UBS has initiated coverage on Ausdrill with a Buy rating, adding to already positive views on the stock as brokers continue to see upside from the company’s mining services operations.

Brokers have updated their views on where there is value in the Australian market post the recent rally, which small cap stocks are preferred and the implications for equities of investors moving to a risk-off approach.

Weather, maintenance, strikes, low gas prices – it was all happening in the March quarter for BHP. But brokers remain focussed on that perceived long term value.

The rising cost of opex and capex combined with high funding costs and lower commodity prices is beginning to impact on the viability of some Australian mining juniors.

Grange Resources delivered a solid March quarter production report and with the Southdown project DFS due this month brokers continue to see value.

Equity strategists have begun to upgrade from Sell ratings on the Australian resources sector as fears ease of an imminent Chinese hard landing.

Minutes of the early April Board meeting confirm the RBA’s easing bias, but is there enough appetite for more rate cuts later?

Paladin delivered yet another disappointing March quarter production report. Expectations remain that sales will improve in coming quarters, but broker opinion on the stock remains divided.