ASX 200 lithium shares are having a roller-coaster day on the market today.
Multiple lithium shares jumped into the green in the morning, before pulling back.
Lithium share movements today include:
- Core Lithium Ltd (ASX: CXO) shares gained 2.7% this morning but are now up just 1.86%
- Pilbara Minerals Ltd (ASX: PLS) shares climbed 1.7% in early trade but are now down 0.65%
- Allkem Ltd (ASX: AKE) shares ascended 1.8% this morning but are now rising only 0.66%
- Sayona Mining Ltd (ASX: SYA) shares rose 1.7% in early trade but are now flat
For perspective, the S&P/ASX 200 Index (ASX: XJO) climbed 0.4% this morning but is now only 0.09% in the green.
What's happening?
ASX 200 lithium shares bounced higher at market open this morning following a rise in US lithium shares overnight.
US lithium giant Livent Corp (NYSE: LTHM) leapt 2.99% higher to $25.48, while Abemarle Corporation (NYSE: ALB) rose 3.37% on the New York Stock Exchange.
Meanwhile, lithium company Sociedad Quimica y Minera de Chile (NYSE: SQM) also jumped 3.56%.
Lithium carbonate (99.5% battery grade) is up 1.16% on the Shanghai Metals Market at US$43,050.17. Lithium hydroxide (56.5% battery grade) is also 0.86% higher at US$41,083.77.
Commenting on the lithium price in a research note this morning, ANZ pacific economist Kishti Sen said:
Lithium prices continue to rebound as destocking across the sector eases. However, reports that China is looking to further support the industry also boosted sentiment.
Meanwhile, the broader market falls on the ASX 200 index may be driven by economic data released this morning.
Australian Bureau of Statistics data revealed today shows Australia's Gross Domestic Product rose just 0.2% in the March quarter, down from 0.6% in the previous quarter.
The market had been expecting a 0.3% rise in GDP, with ANZ predicting 0.4% in a research report this morning. In a note, analysts said:
Market is expecting a 0.3% q/q rise in GDP. We are a touch above at +0.4%.
Reserve Bank Governor Phil Lowe also alerted Australians to a "bumpy" economic road ahead in a speech this morning and hinted further rate rises could be on the way this year, Sky News reported this morning.
Upside surprises on inflation, upside surprises on wages, upside surprise on housing prices, upside surprises on inflation overseas.
We felt like we couldn't just sit idly and say well this is just all accidental, it's all just noise. The conclusion we reached, was that this represents upside risk to the inflation outlook in Australia.
Share price snapshot
The Pilbara share price has risen 90% in the last year, while Core Lithium shares have slid nearly 13%. Meanwhile, Allkem shares have soared 30% in the last year, while Sayona shares have risen nearly 8%.
