The Australian share market hit an all-time high yesterday on the back of the rare earths and critical minerals deal between Prime Minister Anthony Albanese and US President Donald Trump. Among the stars of the bourse, not surprisingly, were the battery metals companies. The benchmark S&P/ASX200 hit a peak of 9115.2 points before finishing up 0.7 per cent to 9095 points with the miners leading the charge. Albanese and Trump agreed to spend $US1 billion each on mining projects over the next six months. In total, the leaders pledged $US8.5 billion ($A13 billion) to support battery minerals companies.

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News in brief

The Australian energy transition is happening at pace, according to the chief executive of the Australian Energy Market Operator, Daniel Westerman, and consumers are driving it.

One in three property markets across the country now have a median value of $1 million or more, with the number of million-dollar suburbs up 143 per cent over the past five years.

China’s military yesterday warned Australia against “infringements and provocations” in the South China Sea that risked a serious incident. It came after a Chinese jet deployed flares near an Australian aircraft for the 2^nd time this year.

Apple’s share price hit a record yesterday, valuing the group at $US3.89 trillion, on the back of higher-than-expected demand for its latest iPhone launch. It has retaken the number 2 spot on Wall Street, ahead of Microsoft but still behind Nvidia.

A small French firm founded by paediatricians believes a skin patch can solve one of parents’ greatest concerns - peanut allergies in children. After more than two decades of work and a few costly setbacks, DBV Technologies is in the last stretch of developing what could be a game-changer for parents and the industry.

Fear-o-meter

It was reassuring to hear Daniel Westerman, boss of the Australian Energy Market Operator, saying the energy transition is happening at pace. And that’s because consumers are demanding it, and businesses are providing it.

He said as coal retires, the least costly way to replace that energy is via renewable energy, coupled with hydro and gas.

In relation to batteries and other alternatives, the energy transition is so big it’s not an ‘or’ question, but rather an ‘and’ question”.

And if anyone was unsure, Westerman explained that gas’ reliability is unmatched in its propensity to assist the energy transition. It can help solve the system security problem and keep the grid secure.

Business By Numbers

The top 3 numbers to know for the week, brought to you by Xero

9115.2 points: the intraday high hit by the S&P/ASX 200 yesterday. 

$13 billion: the value of the rare earths and critical minerals deal between the US and Australia.

$US3.89 trillion: the total market cap of Apple, on the back of a jump in iPhone sales.

Fear & Greed Q+A today

On what he calls a “bizarre flood of liquidity into gold and growth assets simultaneously.” 

 

"In my 30 years, I've never seen a market situation such as this. It seems that every single asset class is at record highs. And there's so much liquidity in the marketplace, which creates its own danger in itself. And I think investors should be quite wary about it. I'm no expert in gold, but it does create an emotion mentally, whether it's fear or greed in relation to being in gold or not, or are people buying it because they want to make money or people buying because they're afraid of other asset classes being at the peak or potential collapse. So there's all of these emotions happening as well. It's in your face as well. So it's a good time to take a breath and have a think about it."

Greed-o-meter

Super funds were up for the sixth straight month in September with the median growth fund (61% to 80% in growth assets) returning 0.8% over the month, according to Chant West.

Source: Chant West

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