ASX 200 rebounds 60 points to 7334 (0.8%) with some enthusiasm curbed by Sydney numbers jumping. Dow Futures down 54 points. Banks and big miners the stand outs today with the Big Bank Basket jumping to $178.88 with CBA leading the charge up 0.6% and MQG rising in sympathy up 0.9%. Insurers were also firmed as QBE jumped 1.4%. Big miners also in favour on commodity price rises, BHP up 3.2% and FMG up 3.3%. Second liners with lithium exposure also firmed as MIN rose 4.2% and PLS up 2.7%. Oil stocks remain becalmed with STO and WPL barely budged. Gold miners too firmed but nothing substantial, DEG up 2.5% and EVN up 2.0%, some of the best. Industrials were mixed as TLS fell 0.5%, COL slipped 1.2% and WOW down 0.2%. Elsewhere XRO rose 2.1% and APT led the BNPL sector higher rising 1.0%. The All–Tech Index rose 0.7%. Healthcare dominated by CSL up 1.3%. The rest of the sector slipped away.  In corporate news, API got a surprise low ball cash offer at 138c from WES up 0.5% and the target rising 19.6%. BFG dived 6.5% after 1H profit before tax of around $24m. STX fell 10.8% on a production test and AXE piled on 13.9% following a positive announcement on qubits. Nothing on the economic front with the 10-year yield falling again down to 1.31%. In Asian markets, Asian markets stronger with Japan up 2.2% and China up 1.6 %

Today’s Highlights

  • ASX 200 up 60 points to 7334 in a low volatility day.
  • High 7353 Low 7300. NSW 112 cases.
  • Dow futures down 54.
  • Big Bank Basket rallies to $178.88.
  • All Tech Index rose 0.7%
  • Gold slips to $2410.
  • 10-year yield steady at 1.35%
  • AUD firms to  74.72c
  • Bitcoin drifts higher to US$34400
  • In Asian markets, Asian markets stronger with Japan up 2.2% and China up 1.6 %

STOCKS

  • API +19.65% WES bid at 138c.
  • AD8 +8.48% run continues.
  • GRR +4.67% iron ore price rises.
  • SYR +2.44% PLS +2.68% Macbank research.
  • BFG -6.50% results disappoint.
  • SZL -3.02% APT +0.96% Z1P -0.84% BNPL mixed.
  • AXE +13.85% first indication of on-chip qubit control.
  • SWP +7.78% further information on acquiaition.
  • GLN +7.22% proof of concept achieves battery grade quality.
  • LIT +4.17% becoming a substantial shareholder.
  • MYR +5.43% board room fun and games.
  • 4DX +5.73% good to see.
  • QFE -5.66% business update.
  • PKS +3.23% rally continues on better volume.
  • CHN +1.09% demerger of gold assets.
  • LTR – rattles the tin.
  • MNS -unchanged- responds to ASX query on market sensitivities.
  • Speculative Stock of the Day: Matsa Resources (MAT) +31.94% standout 410m intersection of Blebby to semi massive sulphide at Symons Hill.
  • Biggest Winners: API, NWH, AD8, INR, SWM and PPK.
  • Biggest Losers: STX, BFG, CMM, KMD, AX1 and EQT.

TODAY

  • Home Consortium (HMC) +0.75% To acquire a portfolio of healthcare properties from GenesisCare for $110m. Reaffirms FY21 funds from operations guidance of no less than 12.9c. Sees a dividend of 12c.
  • Johns Lyng Group (JLG) +2.69% Acquires 60% controlling interest in an insurance building company, Unitech Building Services for $1.9m with earnout potential. The deal is debt and surplus cash-free and expected to be immediately earnings accretive.
  • Vulcan Energy Resources (VUL) +4.68% Granted a new exploration license for geothermal energy, geothermal heat, brine and lithium in Upper Rhine Valley. The license covers 108km2 of an area considered by Vulcan to be prospective for geothermal and lithium brine.
  • Australian Pharmaceutical Industries (API) +19.65% Receives unsolicited, non-binding, offer from Wesfarmers (WES) of $1.38 cash per share.
  • SelfWealth (SWF) -11.96% quarterly report and will add crypto to its share trading platform with as many as 10 digital currencies being offered.

ECONOMIC NEWS

  • In the June quarter, 422 deals for Australian businesses were announced worth a record $87.6bn, more than three times the $27.7bn from the prior quarter.

BOND MARKETS

CV19 NEWS

  • Vaccine Tracker: 3.41bn doses in 180 countries. 32m doses a day. In Australia, 128.086 doses a day. 7 Month still the magic number for 75%.
  • Tokyo entered its fourth state of emergency.
  • U.K. Prime Minister Boris Johnson will today warn people to stay vigilant as he prepares to lift virtually all remaining curbs in England.
  • The French government warns of a “fourth wave” due to the now-dominant delta variant, France reported 4,256 new cases in 24 hours, up 60% in a week. The U.S. reported 33,933 new cases Saturday.

ASIAN NEWS

  • Big Chinese GDP number on Thursday.
  • Beijing now requires Pre -IPO security check.

US AND EUROPEAN HEADLINES

  • European futures flat at the open.
  • Richard Branson joins exclusive club.
  • A chip shortage will ensure car rental prices stay high as Europcar chief has warned.
  • G20 finance ministers sign off on a global tax deal. EU shelves plan for a digital tax.

And finally…

Clarence

XXX