The ASX 200 fell another 40 points to 8630 (0.5%) as the banks came under intense pressure following the budget last night. Adding to the bank woes was the update from CBA, which shocked the market as bad debts rose and growth was sadly lacking. CBA fell an astonishing 10.4%, with the other three banks also falling hard on changes to housing policy in the budget. The CBA fall accounted for around 85 index points. The Big Bank Basket fell hard to $260.67 (-7.1%) as the Big Resource Basket soared, overtaking the banks. BHP led resource stocks higher, hitting another record high, up 2.9%, and claiming the mantle back from CBA as the big Australian. RIO also had a good day on the back of near-record highs in copper, with FMG also putting on the ritz. Given the fall in CBA, the index elsewhere had a good day.

The gold miners were in demand, although bullion was relatively stable. EVN up 0.6%, and NST up 1.0%. Lithium stocks had a small break today, with PLS easing back 0.9%, as did LTR, but rare earth stocks were back in demand, with LYC up a further 2.0%. Energy stocks were mixed, with WDS up 0.4% and STO having a good day, up 1.6%, but uranium stocks eased back, with PDN falling hard on results. Coal stocks firmed.

Industrials generally rose post-budget, with the REITs doing well. GMG up 1.4%, WES finding a base, up 0.4%, and even retail stocks looking a little firmer, JBH up 2.0%. One of the big winners was in the gaming space, with ALL updating the market with some latest numbers and rallying strongly, up 13.3%. Technology stocks were also in demand today. XRO rose after announcing some AI integration progress, although WTC was still on the nose. Healthcare stocks were also slightly better today, with CSL up 0.2% and RMD having a good day for a change, up 2.0%.

Financials ex the banking sector were also firm, with AMP up 1.7% and GQG having a very good day, up 4.8%.

In corporate news, CSL signed a flu vaccine dip in South America, PRN also doing well up 8.4%, after being awarded a mining contract, and TPW falling again after guidance was cut. In other news, WTC fell slightly after DSV confirmed it will transition away from cargo-wise and on to an in-house solution. ALL was a huge winner, on a first half beat.

On the economic front, the focus was on last night’s federal budget, with the property market and, by extension, the banks seen as the most impacted, as house price growth could stall. UBS analyst has said the budget does make equities attractive again.

Asian markets better with Japan up 0.9%, China up 0.4% and HK up 0.2%; The Kospi  back up 2.4%

US futures modestly higher, Dow futures up 15, Nasdaq up 120. European futures opening slightly higher. US PPI tonight.

HIGHLIGHTS

• Winners: ALL, ARU, MAH, EQR, FRS, FFM
• Losers: PDN, CBA, AFG, ELV, TPW, SHV, MMS
• Positive Sectors: Iron ore. Gold miners. Copper. Oil and gas. Gaming.
• Negative Sectors: Banks! Healthcare.
• ASX 200 Hi 8655 Lo 8591
• Big Bank Basket: Falls to $260.67 (-7.1%)
• All-Tech Index: Up 0.4%
• Gold: Slips to $6507
• Brent Crude up 1.0%
• Bitcoin: Steady at US$81010
• 10-year yields: Steady at 5.06%
• AUD: Steady at 72.39c.

MARKET MOVERS

• ALL +13.3% results beat.
• EQR +11.3% cleansing notice.
• ARU +12.1% presentation.
• PRN +8.4% BGL contract win.
• INR +13.8% lithium exposure.
• BKB +18.2% MRE increases to 2.2Moz.
• HLS -22.7% trading update and strategic review.
• PDN -12.1% shorts back in control after results.
• CBA -10.4% crashes on bad debts and the budget implications for housing.
• AFG -8.2% mortgage market woes.
• TPW -6.4% trading update.
• MMS -4.3% budget changes perhaps.
• ELV -7.6% completes $275m placement.
• LOT -7.6% change in substantial holding.
• Yesterday’s Hero: EVG -unchanged
• Speculative Stock of the Day:  SLB +100.0% Tungsten project acquisition.

ECONOMIC AND OTHER NEWS

• Mr Trump goes to Beijing. Trade the focus.
• Jensen Huang catches private jet to catch up with delegation.
• Gold Coast Trump tower cancelled.
• Anthropic set to raise US$30bn at a $900bn valuation.
• Samsung failed to reach a last-minute wage agreement with its largest labour union, heightening the risk of a strike that could disrupt operations at the world’s largest memory chipmaker.
• 1MDB financier Jho Low asks Trump for a pardon.
• Starmer clings to power after four ministers resign. King Charles set to open parliament.
• Hormuz closure stalls construction projects as material costs soar.
• India, the world’s second-largest gold consumer, has raised import duties on gold and silver to 15% from 6%.

And finally….

What form of currency do astronauts use? They use Starbucks!

Clarence

XXXX