Signs of slowing US Inflation?

Another bumper day ending a strong week for the local market as the US inflation report overnight suggests that the rate of inflation could be slowing down. More on that later. The ASX200 finished the day up 47.70 pts, or 0.66%, to 7,328.10, trading close to the most recent high on 1st December when the ASX200 was 7,354. The index was up 3.74% for the week with the resourcing sector continuing to lead the way.

Nine of the eleven market sectors ended the day in the green. The Energy industry had the best performance, increasing its value by 1.50%, followed by the Discretionary and Telco sectors. Consumer Staples fell the most on the day, decreasing in value by 0.45%.

Blackmores and New Hope Corporation were the best-performing companies in the index, increasing in value by 6.24% and 5.07% respectively.

Economic News

Investors braced as the December inflation report dropped overnight in the US. Inflation fell to 6.45% for the month of December, down from 7.1 % last month. The slowing rise in inflation could suggest the end of rate rises could be here sooner than expected.

Headline consumer price index fell 0.1 per cent in December from November, primarily due to a 4.5 per cent drop in energy prices. This is the first month-on-month drop since May 2020

In other economic news, the number of Americans filing new claims for unemployment benefits decreased by 1,000 to 205,000 in the week ending January 7th, far lower than the consensus estimate of 215,000.

Quick Singles

• In Crypto news, the Securities and Exchange Commission charged Genesis and Gemini for the unregistered offer and sale of crypto asset securities in the US on Thursday.

• Lovisa Holdings Ltd (ASX: LOV) share price increased 2.8% to $26.16 after a broker note from Canaccord Genuity.

Top Story

Life360 update sends share price soaring

The Life360 Inc (ASX: 360) share price surged 11.1% to $5.42 on Friday after the business issued a trading update. The company's great performance continued in the fourth quarter of 2022 with a subscription revenue increase of over 54% (excluding Tile and Jiobit), which was in line with projections.

In addition, the company reported that its cash position at the end of the year surpassed expectations, with a balance of $90 million, adjusted for $32 million in net placement proceeds. Also meeting projections were the company's full-year revenue and adjusted EBITDA. On the low end of its guidance range of US$225 million to US$240 million in revenue and US$37 million to US$41 million in EBITDA loss is anticipated.

Since the conclusion of iOS price revisions in mid-December, Life360 has reported a return to normal growth and churn rates, which is encouraging.

Movers and Shakers

✅Biggest Winners

Lithium Power International Ltd (ASX: LPI) share price increased by more than 3.2% to $0.49 after The lithium explorer announced this morning that it has started its first drilling campaign at its East Kirup lithium prospect in Western Australia's Greenbushes region. Additionally, the company disclosed that, pending market conditions and shareholder agreement, its Western Lithium division would be dissolved in the first half of 2023.

Santos Ltd. (ASX: STO) share price increased by over 2.4% to $7.30 following an overnight increase in oil prices after a recent pullback in prices. This was motivated by the hope that the world's demand for oil may increase.

❌ Biggest Losers 

Brainchip Holdings Ltd. (ASX: BRN) share price decreased by 0.8% to $0.66. The share price of the AI software manufacturer has been under pressure this week following another round of capital raising this week. Shares in Brainchip are down almost 21% in the last 3 months.

Deterra Royalties Ltd (ASX: DRR) share price fell 1.3% to $4.73. This may have also been driven by a broker note sent by Goldman Sachs. The investment firm lowered the shares of the mining royalty company to a neutral rating with a $4.50 price target this morning. After a significant rise since October, Goldman's decision was primarily motivated by valuation.

Small-Cap of the Day

Chinese EV investing in Australian Lithium 360 

Greenwing Resources (ASX:GW1) share price increased by 27.3% to $0.35 following the completion of a $12m placement of 21.8 million shares to Chinese EV manufacturer NIO. The cash was used to accelerate outstanding option payments and pay its share of development expenses for the San Jorge lithium project in Argentina.

The lithium brine project comprises fifteen exploration licenses spanning a total area of 38,000 hectares. Geophysics indicates a basin depth of up to 600 meters, and brine samples have yielded lithium concentrations of up to 285 mg/l. The property is situated near substantial third-party resources and mines. It may also be useful for lithium extraction directly to make lithium hydroxide.

That's it from the team at ASX-News today. We hope you enjoyed our EOD wrap-up. Good night and happy investing!