Market Wrap / lithium losses

Despite a shaky start, the local market followed Wall Street higher during Wednesday’s trade, with gains in financials offsetting weakness in the miners.The S&P/ASX 200 Index rose 0.31% to close at 8,830.40 points. The financial sector gained 1.45%. Shares in Judo Bank outperformed on a broker upgrade from Citi, while Westpac also rose on the back of the broker upgrading it to neutral.

The materials sector fell 1.80%. Lithium miners were a drag amid news China’s CATL is restarting its Yichun mine, dragging down prices of the commodity. PLS and Liontown Resources plunged by more than 15%. Vulcan Energy fell despite securing approval to build its lithium hydroxide plant in Germany. And Iluka was lower by 14.69% after unveiling plans to halting production at its WA mine from December.

Elsewhere, Metcash rose 0.5% after an earlier fall as it warned higher costs will weigh on profit. 

Adairs and Brambles were among stocks trading ex-dividend. In China, data showed consumer prices slid in August while producer deflation eased.

Ahead tonight, US producer prices data is due.