ASX 200 rallies 23 points to 7355 (0.3%) after shrugging off extend Sydney lockdowns and more cases in NSW and VIC. Dow futures down 60 points. Big miners and industrials leading the market higher. The Financials coming under a little pressure with the Big Bank Basket steady at $177.96. Modest losses in ANZ and WBC. Elsewhere, ASX rose 1.3% and MFG up 2.0%. Defensive industrials blossomed with TLS up 0.8%, WOW up 0.8% and WES up 0.7%. TCL rose despite no traffic on roads in Sydney and SVW rose 3.5% on the cusp of 50% of BLD down 0.5%. Tech shares clouded by big falls in the BNPL space, APT wounded by 9.6% and Z1P undone by 11.4% with SZL on the grill too down 10.3%. PayPal and Apple entering the market a serious negative for the sector. Z1P update tomorrow should be good but will it be enough? All -Tech Index down 1.7%. Miners doing ok, BHP bouncing back 0.5% with FMG and RIO unchanged. Gold miners better NCM up 2.6% and NST up 3.9%. Energy stocks still becalmed in a sea of ESG concerns. Travel stocks eased as holidays cancelled and credits given on lockdown news. In corporate news, MAQ adding 15.4% on a data centres update, confirms guidance. EVN rose 4.1% ahead of an investor briefing on Friday. LTR fell 5.3% on its capital raising and PPS rose 14.9% on a FUM and solid business update. On the economic front, The Westpac–Melbourne Institute Index of Consumer Sentiment rose 1.5% to 108.8 in July from 107.2 in June. The survey was conducted before tighter restrictions in NSW on July 9. WBC said “concerns around the current virus outbreak and associated restrictions in NSW are not spilling over to the rest of the country.”10 -year yields steady at 1.33% and Asian markets easier with China down 1.07% and Tokyo off 0.23%. Chinese GDP tomorrow.

Today’s Highlights

• ASX 200 up 23 to 7355. Quiet trade
• High 7368 Low 7327. Sydney cases sap strength briefly
• Dow futures down 60
• Big Bank Basket steady at $177.96
• All Tech Index down 1.7%
• Gold higher at $2429
• 10-year yield steady at 1.33%
• AUD slips to 74.68c
• Bitcoin slips to US$31969
• Asian markets easier with China down 1.07% and Tokyo off 0.23%. Chinese GDP tomorrow

STOCKS

• VUL +10.87% good call from Chris.
• Z1P -11.38% APT -9.59% SZL -10.26% BNPL casualties.
• PNV -4.56% slips after update.
• LYC -5.62% profit taking continues.
• WEB -2.55% FLT -3.39% Sydney lockdown bites.
• CTT -4.66% luxury not today.
• LTR -5.33% capital raising.
• BBT +5.17% ‘Sullo’ heads to Iowa for US entrance.
• MAQ +15.43% business update. 6,000 shares traded!
• BKL +6.17% mans the barricades on Bastille Day against takeover potential.
• LSF +4.55% fund NTA update and buy back news.
• PPS +14.95% solid FUM and business update.
• DW8 +15.19% Sydney lockdown to turbo business again.
• GDG +14.37% June quarter update.
• LCK -6.90% too more manure perhaps.
• RVR -6.38% quarterly production.
• HCH +12.12% spiced up.
• INR +4.94% no buckwheat issues today.
• WBT +15.64% progress on ReRam.
• SKI +7.83% trading halt, more to come. Material transaction. Takeover perhaps?
• EGR +9.60% commercial sale delivers 20% yield increase.
• Speculative Stock of the Day: Infinity Lithium (INF) +34.78% Spain has approved a EUR4.3bn recovery plan. Electric mobility a key component in that plan. BKY -16.22% environmental concerns
• Biggest Winners: MAQ, VUL, SKI, BKL, EHL, SM1, RMS and INR.
• Biggest Losers: Z1P, SZL, APT, LYC, LTR, WAF, DUB and JMS.

TODAY

• Boral (BLD) -0.54%Completes on-market share buyback, acquiring 122.6m ordinary shares for ~$859.5m since 19^th April.
• Macquarie Telecom Group (MAQ) +15.43% Provides update on IC3 Super West and confirms guidance of EBITDA of $72-75m for 2021. IC3 Super West update: “Macquarie Data Centres has today lodged a State Significant Development Application to build a new data centre at the Macquarie Park Data Centre Campus which will add 32MW of IT Load to bring the total campus IT Load to 50MW over time. Macquarie Data Centres is currently obtaining the necessary planning consents, which are expected to be received in early 2022. Macquarie Data Centres is aiming to complete construction of Phase 1 of IC3 Super West in H2 of calendar year 2023.”
• Sandfire Resources (SFR) +2.25% Reports 2021 preliminary copper production at the upper end of guidance (70.8Kt vs company guidance 67-70kt.). FY2021 preliminary production, cost and sales performance: 39,459 oz of contained gold vs company guidance of upper end of guidance range 36-40Koz. C1 unit operating costs of $0.81/lb vs company guidance $0.80-$0.85/lb. Total sales revenue of $813m. $574m in Group cash holdings at 30-Jun-21.
• Praemium (PPS) +14.95% Q4 funds under administration $41.68bn vs quarter-ago $37.93bn. Announces it is looking to divest its international business following a strategic review, the board supports the finding. Praemium has also received unsolicited, strong interest from potential buyers.
• Australian Pharmaceutical Industries (API) +4.73% Shareholders reportedly call Wesfarmers offer ‘a bit light’.”Investors Mutual portfolio manager Simon Conn was quoted saying “It’s not a knockout bid that’s for sure – at less than 13 times earnings it’s not expensive, even though it’s had a 20% bump because of the bid.”
• Humm group (HUM) -3.96% Enters into a joint venture with Westpac NZ to launch BNPL product called bundll in New Zealand. Bundll will use the Mastercard network and be available to customers in New Zealand from August 2021. The deal will see Red Bird have the option to take an equity stake in bundll New Zealand.

ECONOMIC NEWS

• The Westpac-Melbourne Institute Index of Consumer Sentiment rose 1.5% to 108.8 in July from 107.2 in June. The survey was conducted before tighter restrictions in NSW on July 9. WBC said, “concerns around the current virus outbreak and associated restrictions in NSW are not spilling over to the rest of the country.”

• RBNZ hold rates unchanged at a record low of 0.25%. It said it would halt its Large Scale Asset Purchase (LSAP) program by July 23, 2021.

BOND MARKETS

CV19 NEWS

• Sydney lockdown extended by two weeks. So far. MCG exposure site with 7 cases in Victoria.
• 35,000 new cases in US today.
• Vaccine Tracker 3.46bn doses in 180 countries. 29.5m a day. In Australia, 128,834 doses with 7 months to go.

ASIAN NEWS

• North Korea facing its worst food shortage in decades.
• Chinese GDP tomorrow.

US AND EUROPEAN HEADLINES

• European futures showing modest losses early.
• UK June CPI up 2.5%. Core 2.3% v forecast 2%.
• EU to unveil an ambitious climate policy package known as Fit for 55.
• Merkel heads to the US to talk for the last time. 
• Hugo Boss sales in fashion on results and VW says 50% of sales by 2030 will be EVs.
• Cathie Wood says sell China tech. May have missed the boat a bit.
• More US numbers tonight. Inflation hitting 13-year highs but it’s all ‘transitory’.
• Apple kicks off ‘Bite Now Pay Later’ push. Plus, looking at a 20% increase in iPhone production in 2021.

And finally…some dark humour! Thanks Adam.

The guy who stole my diary just died. My thoughts are with his family.

A son tells his father, “I have an imaginary girlfriend.” The father sighs and says, “You know, you could do better.” “Thanks Dad,” the son says. The father shakes his head and goes, “I was talking to your girlfriend.”

Do you know the last thing my grandfather said to me before he kicked the bucket? “Grandson, watch how far I can kick this bucket.”

What’s the difference between a wizard who raises the undead and a sexy vampire? One is a necromancer and the other is a neck romancer.

A kid decided to burn his house down. His dad watched, tears in his eyes. He put his arm around the mom and said, “That’s arson.”

I like to spend my weekends playing chess with old men in the park. It’s not easy. You try finding thirty-two old guys.

What’s worse than biting into an apple and finding a worm? Biting into an apple and finding half a worm.

My parents raised me as an only child, which really annoyed my younger brother.

Did you hear about Pillsbury Doughboy? He died of a yeast infection.

Clarence

XXX