The ASX 200 closed up 43 points at 9,020, as promising news from the Middle East over the weekend encouraged buyers back into the market. Stronger US futures helped sentiment, while a fall in the oil price added to the optimism.
The banking sector shrugged off early losses, with NAB up 0.7% and WBC up 0.8%. Financials were generally firmer, with MQG edging 0.8% higher and the insurers also finishing in positive territory. The Big Bank Basket up to $294.96 (+0.3%).
Elsewhere, industrials caught a bid, with QAN up 3.7% on the back of lower oil prices, SGH also performing well, and WES rising 1.5%. Retail stocks were firmer, with JBH up 0.6%, while WOW and COL also drifted higher.
In the technology sector, WTC rose 1.2% and XRO gained 1.9%. Healthcare also had a better session, with CSL up 1.0% and RMD rising 1.6%.
In resources, the iron ore majors were mixed, with BHP 0.7% higher, while RIO and FMG both eased. The gold sector was slightly firmer, with EVN up 1.7% and GGP gaining 1.1%. Once again, lithium stocks came under a little pressure, with PLS down 1.7% and MIN off 0.4%.
Meanwhile, oil and gas stocks slipped as crude prices fell, with WDS down 1.4% and STO easing1.9%. Uranium stocks were mixed, with PDN up X%.
In corporate news, SDF rose 2.9% after KKR confirmed it was proceeding with its takeover offer, having largely completed due diligence. FPR also jumped 17.3% following a non-binding indicative offer from SG Fleet.
There was nothing of note on the local economic front.
Asian markets were better, with the Nikkei 225 down 1.1%, Hong Kong unchanged, China down 1%, and Korea off around 5.5%. US futures were firmer, with the Dow up 294 points and the Nasdaq up 250 points. European markets are set to open around 1% higher. UK closed for August Bank Holiday.

HIGHLIGHTS

Winners: FPR, BNZ, ELS, SKS, 4DX, DRO, CYL
Losers: FML, AIS, AXQ, BFG, FMG
Positive Sectors: Banks. Tech. Industrials. Healthcare. Financials.
Negative Sectors: Oil and gas. REITs
ASX 200 Hi 9019 Lo 8940
Big Bank Basket: Rises to $294.96 (+0.3%)
All-Tech Index: Up 1.0%
Gold: Steady at $5778
Bitcoin: Steady at US$62746
10-year yields: Steady at 4.93%
Oil down 5%.
AUD: Rises to 70.35c

MARKET MOVERS

FPR +17.3% 360c bid from SGF.
BNZ +12.8% Diggers presentation.
SKS +9.5% guidance update.
4DX +9.1% rally continues.
FFM +6.3% promising drill results.
DMP +6.3% shorts squeezed again.
DRO +7.1% oversold.
MYX +10.2% trading update.
BTR +10.9% spectacular 308m @1.8g/t
AIS -7.4% disappointing capex.
AXQ -6.3% resumes downtrend.
Speculative Stock of the Day:  CDR +46.2% not great volume. Restatement to quotation.

ECONOMIC AND OTHER NEWS

AstraZeneca–Bristol Myers merger talks – One of the biggest stories in Europe is reports that AstraZeneca and Bristol Myers Squibb are in discussions over a potential US$400bn merger, which would create one of the world’s largest pharmaceutical companies. Any deal would face intense regulatory scrutiny in the UK, US and Europe.
Chinese exports remain resilient – Despite trade disputes with both the US and Europe, Chinese exports continue to hold up better than many economists expected, reinforcing Beijing’s confidence in its manufacturing-led growth strategy.
China’s RatingDog Manufacturing Purchasing Managers’ Index (PMI) eased to 50.9 in July from 51.7 in June the latest data published by RatingDog showed on Monday. The market forecast was for a 51.5 reading.

The headline figure was dragged down by the new orders sub-index, which fell to 48.5, the lowest in 38 months, according to official data accessed via Wind.
Alibaba Group released its biggest-ever artificial intelligence model, claiming performance on par with global leader Anthropic in the latest Chinese breakthrough to challenge US rivals.
The yen rallied sharply on Monday after Japan and the US warned they were ready to wade into the market again after co-ordinated intervention last week.
US Treasury Secretary Scott Bessent said that the US stepped in to help fight “disorderly” movements in the yen and is ready to keep helping Japan. Trump mentioned Pearl Harbour. Not very diplomatic.
Uefa threatens legal action over Infantino’s failed Fifa commercialisation.
Monte dei Paschi explores Banco BPM takeover after ‘merger of equals’ talks collapse.
Labour overtakes Reform UK in polls for first time in more than a year.
 

And finally….

Clarence

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