Video: Lithium demand is rising and could gallop further amid Ford & CATL plans, S&P500 in wobble mode

Video: Lithium demand is rising and could gallop further amid Ford & CATL plans, S&P500 in wobble mode

Jessica Amir
Market Strategist

Summary:  Watch our video in under four minutes or read the text for what’s happening in markets, what to watch; plus potential trading and investing ideas to consider.

US equities (US500.I and USNAS100.I) may be wobbly this week, with CPI out Tuesday

Markets seem defensive coming into this week - worried firstly, the Fed can keep rates higher for longer, triggered by hawkish Fed speaker comments last week. Secondly, investors are cautious ahead of US inflation being released on Tuesday  - with CPI expected to drop from 5.7% to 5.5% YoY. The 10-year bond yield climbed 9 bps to 3.72% - its highest level since Jan 1, flagging there a bit of concern ahead. While also in defense mode - buying picked in the US dollar for the second week - taking the US dollar index to close at its highest level since the Jan 2. And this pressured commodities lower. So these catalysts caused investors to trimmed equity gains, also in case CPI data blows hotter than expected. The S&P500 fell 1.1% last week - its biggest weekly drop in 2023.

Australian equites (ASXSP200.I) could also wobble, if employment data is hotter than expected and commodities pair back with a higher US dollar

This week investors and traders will be focused firstly – Australian employment data out for January, due on Thursday, expected to show employment rose by 20,000 from the prior drop, with the unemployment rate expected to remain unchanged at 3.5%. Also importantly, consider the Aussie share market, may be potentially vulnerable for a pair back as the Australian 10 year bond yield has moved up aggressive to 3.81%- its highest level since January. The reason for this, is that the market is expecting the RBA to make ~78.6bps of hikes before pausing in August. So this means unprofitable tech companies and those businesses that don’t pay a dividend yield are vulnerable. From a technical perspective, it also looks like the ASX200 is running out of steam. Click here for our technical analyst's views 

Crude oil (CLH3 & LCOJ3) moves higher on Russian supply falling

Oil posted its largest weekly gain in four months and is currently up 2% $79.72, on Europe banning Russian supply. While Russia is wanting to limit its discount on Urals oil to Brent at $34 a barrel in April, $31 in May, $28 in June and $25 in July. Elsewhere, other supply returned to the market with Tanker loadings of Azeri crude docking at Turkey's Ceyhan terminal. As our Head of Commodity strategy points out, the oil market is awaiting for more demand from China to drive prices higher. For Ole Hansen's weekly oil take click here.  As per our Quarterly outlook, we’re expecting Brent Oil to remain around the $80 levels in this quarter, and move to the $90s in the second quarter and beyond. For more, read our Quarterly Outlook.

Lithium companies on watch with the battery market heating up; Ford and CATL building a battery plant

Lithium imports to China and USA are surging this year, ahead of car makers ramping up production with some of the IEA countries planning the end of sale of fuel engines in seven years, while EV car makers are eager to ramp up car production. Meanwhile, Albemarle reports earnings this week - and will be a proxy to watch for what we may expect from lithium companies this year. In other news, Ford and CATL are reportedly planning to build a $3.5 billion mega battery plant, across 1,900 acres - and employ 2,500 workers. Meaning, they will need to buy industrial metals to produce batteries. This supports Saxo’s bullish view on battery metals; copper, aluminium and lithium. Click the link, for a look at stocks to watch this week across these metals sector. Alternatively refer to Saxo's  Equity baskets under Research, Stocks. 


- - - 

Turn to Saxo's
inspiration page for our global market insights and expectations.

To listen to our take on markets tune into our global Podcast.



Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (
- Analysis Disclaimer (
- Notification on Non-Independent Investment Research (

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000

Contact Saxo

Select region


The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.