The ASX 200 closed up a mere 9 points at 8,978 (0.1%), as a solid start gave way to caution ahead of the weekend. There was a bounce today in some of the oversold small and mid-cap stocks as the banks eased back, with CBA down 0.4% and ANZ down 0.5%, and the Big Bank Basket falling to $294.04 (0.5%). Financials were slightly firmer, with MQG leading the charge, up 1.2%. Other financials also bounced well, but insurers slipped, with QBE down 2.5% and IAG down 1.5%.

Elsewhere, industrials were somewhat weaker, with WOW and COL seeing sellers, together with REA, CAR and SEK. Healthcare was also under pressure, with CSL down 3.8% and RMD falling 1.5%. Technology stocks eased back in the software space, but the hardware and data centre sector firmed, with WTC down 4.2% and NXT up 4.5%.

In resources, buyers returned for BHP and RIO, together with the gold miners, which were stronger as EVN rose 1.9% and NEM gained 3.5%. Lithium stocks, though, remain weak, with PLS down 1.4% and LTR continuing to fall from grace. Oil and gas stocks flat, with WDS up 0.2% and STO up 0.1%, while coal stocks also slipped as uranium stocks bounced slightly.

In corporate news, FMG took a $746.8m hit on its Iron Bridge project. ORG was up 0.9% with Octopus adding 2.2 million customers, while OBM had a good day as it expanded the footprint of its Little Gem Gold Project. MGH also got the tick of approval to sell its construction business to Heidelberg.

In economic news, China factory activity unexpectedly contracted in July.

Asian markets were better, with the Nikkei 225 up 4.3%, Hong Kong down 0.2%, China up 1.2%, and Korea up a record 17.4%. US futures were firmer, with the Dow up 242 points and the Nasdaq up 322 points. European markets are set to open around 0.5% higher.

HIGHLIGHTS

• Winners: 4DX, CU6, MP1, SLX, EOS, DYL, FFM
• Losers: CIA, DMP, DRO, WTC, SMR, CSL
• Positive Sectors: Iron ore. Gold miners. Uranium.
• Negative Sectors: Banks. Tech. Insurers.
• ASX 200 Hi 9060 Lo 8972
• Big Bank Basket: Eases to $294.04 (-0.5%)
• All-Tech Index: Up 0.5%
• Gold: Steady at $5805
• Bitcoin: Higher at US$64245
• 10-year yields: Lower at 4.92%
• AUD: Rises to 70.28c
• US futures were firmer, with the Dow up 242 points and the Nasdaq up 322 points

MARKET MOVERS

• 4DX +13.1% solid bounce.
• MP1 +11.5% solid bounce.
• EOS +9.7% oversold yesterday.
• SXE +8.0% SKS +5.3% AI data centre bounce.
• ZIP +8.1% buyers back.
• PEN +22.2% quarterly report.
• EOL +31.8% takeover bid at $17.
• WTC -4.2% tech back under pressure.
• DMP -5.2% sellers back!
• DRO -4.2% sellers never left!
• CSL -3.8% book squaring.
• AIH -38.8% trading update.,
• Yesterday’s Hero: KME +2.2%
• Speculative Stock of the Day:  Nothing on any volume.

ECONOMIC AND OTHER NEWS

• Copper is headed for a monthly advance due to growing signs of tight supply. Up 3% in July.
• BoJ holds rates steady
• China’s factory activity unexpectedly contracted in July for the first time since February, as domestic orders slumped and typhoons disrupted production. The official manufacturing purchasing managers’ index fell to 49.2 from 50.3 in June.
• South Korea’s stock market staged its sharpest reversal on record on Friday, capping a month of wild swings. The benchmark Kospi was on track for its largest one-day jump.
• SK Hynix up nearly 30%
• AI investor Leopold Aschenbrenner forced to unwind all public stock positions after steep losses. Situational Awareness has sustained significant losses in recent weeks as its portfolio of AI infrastructure investments such as SK Hynix declined while short positions in software companies such as Adobe moved sharply against it.
• Trump ‘not sure’ he will let Ukraine build Patriot missiles.
• Big Tech AI spending spree tops $1tn.
• Spain’s migrant crisis triggers Italian call for EU travel restrictions.
• Warsh’s stripped-back Fed communication ‘already backfiring’, say investors.

And finally….

Two WiFi Engineers got married. The wedding was okay but the reception was amazing.

Clarence

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