AU Morning Wrap: ASX Firms 0.06%; IAG and Suncorp Hit by NZ Flood Claims

US stocks ended a winning week with further gains on Friday as investors assessed inflation data and mixed corporate earnings. The main indices pared gains in the final hour.

Investors welcomed further evidence of cooling inflation. Consumer prices increased a modest 0.1 per cent in December, according to Commerce Department data. The annual rate of price increases slowed to a 15-month low of 5 per cent from 5.5 per cent in November.

Core inflation rose 0.3 per cent, in line with expectations. The annual increase was a 14-month low of 4.4 per cent, down from 4.7 per cent in November.

The report sharpened hopes the Fed will this week downsize the current pace of interest rate hikes after raising by 50 basis points at its last meeting following a run of 75 bps increases.

OZ Minerals edged up 0.1 per cent despite reporting a record copper production.

IAG dropped 3.1 per cent and Suncorp shed 2.1 per cent after both insurers warned the number of claims due to ongoing floods in New Zealand was likely to climb.

Lynas Rare Earths jumped 2 per cent following higher revenues in the December quarter.

Mining giants Rio Tinto, BHP and Fortescue retreated and the major banks were mixed.

The number of claims was expected to climb over the coming days, with the event still unfolding and as customers identify damage to their property, the company said.

The company reported sales revenue of $232.7 million for the three months to December 31, up from $202.7 million in the prior corresponding period.

The company's December quarter production of 36,307 tonnes of copper is its highest on record.

The rollout is to start immediately with initial go-lives scheduled in the second half of 2023.

• Mining heavyweights BHP and Rio Tinto retreated in overseas trade despite a second day of modest gains in iron ore as trade resumed in Singapore following the Lunar New Year break. Ore fines edged up 0.17 per cent to US$122.70 a tonne.

• Oil retreated ahead of a meeting this week of the Organization of the Petroleum Exporting Countries and allies, and a looming European Union ban on Russian oil imports. OPEC+ holds a committee meeting on Wednesday. The EU ban on Russian imports starts on Sunday.

Brent crude settled 81 US cents or 0.9 per cent lower at US$86.66 a barrel. The US benchmark, West Texas Intermediate, fell 1.6 per cent to US$79.68, its lowest close in a week.

• Gold eased further from a nine-month high earlier in the week. Gold for February delivery settled 60 US cents or less than 0.1 per cent weaker at US$1,929.40 an ounce. The NYSE Arca Gold Bugs Index sank 1.63 per cent.

The yellow metal eked out a weekly gain of less than 0.1 per cent, just enough for a sixth straight weekly advance, the longest run since August 2020.