ASX 200 fell 35 points to 6594 (0.5%) as commodity stocks remain under serious pressure on crude falls. Iron ore stocks led the falls with BHP down 5.6% (34 index points alone) and FMG off 4.9%. Gold miners slid on bullion falls, NCM down 6.6% RRL down 6.9% and EVN off 4.0%. Base metals also in the firing line, IGO collapsed 4.9%, S32 off 8.3% and AKE down 4.0%. Energy stocks also on the nose, WDS down 6.9%, STO falling 6.2% and KAR down 11.0%. Coal stocks ease with WHC down 3.7%. The pile on continues. The banks though kept their end up as they passed on rate increases. The Big Bank Basket rose to $162.40 (1.0%). CBA up 0.8%, NAB up 1.8% and MQG doing well up 0.6%. Insurers remain unloves as flood waters rise and Albo visits the scene. No hose for him either. Healthcare doing ok, CSL up 2.6% and FPH rising 3.4%, industrials gained, WES up 1.6%, ALL up 2.3% and REH up 3.2%. ‘Old Skool’ platform stocks pushed up with REA up 2.4% and SEK up 1.9%. Unloved and shorted stocks that were belted due to tax year selling have been the stand out stars. MP1 up 14.0%, 360 up 13.9% and DMP +6.5% doing better as it now charges a 6% surcharge on deliveries. Tech stocks better in line with Nasdaq, WTC up 3.7%, XRO bouncing 6.7%. The All -Tech Index rose 3.2%. In corporate news, BUB returned from a trading halt after a cap raise falling 3.1%. EML rose 10.5% after signing a deal in Spain and QAN is facing a strike after its $5000 incentive fails to fly with engineers. Asian markets drift lower with Japan down 1.1%, HK down 1.6% and China off 1.2%. 10-year yields fell hard down to 3.39%

HEADLINES

• Winners: MP1, 360, JIN, NAN, TLX, OPH, XRO, DMP
• Losers: 29M, KAR, SBM, CRN, WGX, SYA, CIA, SFR
• Positive sectors: Banks. Healthcare. Tech. Dogs. Industrials. Staples. REITs.  
• Negative sectors: Resources Oil and Gas. Coal..
• High 6652 Low 6588.
• Big Bank Basket: Rises to $162.40(1%)
• All-Tech index: Up 3.2%.
• Gold: Lower at $2602
• Bitcoin: Heading lower at US$20,070
• Aussie Dollar: Lower at 67.86c. USD Index hits highest level since 2002.
• 10-Year Yield Lower at 3.39%
• Asian markets: Asian markets ease with Tokyo down 1.1%, HK down 1.6% and China off 1.2%.
• US Futures: Dow down 180 Nasdaq down 38 – European markets opening firm by around 1.0%.

MAJOR MOVERS

• MP1 +14.03% short covering bounce.
• 360 +13.89% tax loss selling bounce back.
• DMP +6.49% 6% service fee on deliveries helping here.
• XRO +6.65% tech bounce.
• OPH +8.0% July webinar summary.
• BWX +16.42% change in substantial holding.
• EML +10.51% Hola Espana.
• TYR +9.45% promising bounce.
• EOS +8.00% oversold.
• CDD +195.23% ex dividend and ex capital return.
• WOW +2.51% upgraded by UBS on food inflation.
• KAR -11.01% oil price falls.
• SBM -9.50% becoming a substantial holder.
• CIA -8.65% iron ore price falls.
• S32 -8.31% commodity price falls.
• MGX -7.69% iron ore.
• POS -14.00% nickel price falls.
• BBT -7.89% details of Q4 FY22 Appendix 4C.
• Speculative Stock of the Day: Redcastle Resources (RC1) +12.50% -outstanding high grade shallow RC drilling results. 10m @29.16g/t from 6m including 1m @250g/t from 11m.

IN THE NEWS

• QAN – one off staff bonus of $5000 has not satisfied engineers which are looking to strike.
• EML Payments (EML) has signed a deal with Spain’s national post office to load around 500,000 prepaid cards with EUR400.
• Insurance Australia Group (IAG) finalises FY23 aggregate reinsurance cover.
• ASX (ASX) June activity average daily value $7.05bn, +24% vs a year ago.
• Macquarie Group (MQG) issues replacement Capital Notes 6 prospectus to raise $750m.
• Incitec Pivot (IPL) appoints Chris Opperman as CFO of the proposed standalone Incitec Pivot Fertilisers business.
• Gold Road Resources (GOR) Q2 preliminary Gruyere gold production of 85,676oz vs quarter-ago 71,135oz. Production rates remain in line with annual guidance of 300 – 340K oz.
• Sims (SGM) repeats FY22 guidance of underlying EBIT between $750-770m. High metal prices and improved metal volumes have provided the main drivers of improvement over the FY21 result. Due to geopolitical and economic uncertainty, SGM’s expect challenging conditions to remain as move into Q1 of FY23.

ECONOMIC NEWS/ BOND MARKETS

• ANZ Bank said it will increase variable interest rates across its Australian home loans by 0.5%. Macquarie, Commonwealth Bank and ANZ Bank have all passed on variable interest rate increases today.
• RBA release chart pack: Some interesting ones below.

ASIAN MARKETS

• In China, overall consumption of the major transport fuels last month was at almost 90%.
• Macau shuts its first casino since 2020 as virus outbreak continues. The shutdown started yesterday and is set to last until July 11.
• Many of the world’s leading economies will fall into a recession within the next 12 months as central banks move to aggressively tighten monetary policy to fight surging inflation, according to the chief economist at brokerage firm Nomura holdings.

US AND EUROPEAN HEADLINES

• European stocks are expected to open higher on Wednesday as markets look to reverse a negative slide in the previous trading session.
• The July Sentix Economic Index on Monday showed investor morale across the 19-country euro zone has plunged to its lowest level since May 2020, pointing toward an “inevitable” recession.
• Manhattan apartment sales have fallen 30% in June but prices remain still elevated.
• Boris is on the brink after resignation of his Chancellor and health secretary. He even lost his trade secretary to Morocco. 69% of Britains want Johnson to resign.
• OPEC Secretary General has died.
• The US is pushing the Netherlands to ban ASML from selling to China technology essential in making a large chunk of the world’s chips.
• US retailers ditch talk of ‘Roaring Twenties’ boom amid consumer pinch.
• Norilsk and Rusal in talks to forge $60bn Russian metals champion.
• Warren Buffett-backed Chinese group BYD overtakes Tesla in global EV sales.
• Voyager Digital files for Chapter 11. Has US$1.3bn of crypto assets.
• England won fifth Test by seven wickets, chasing record total of 378, beating their previous best of 359 when Ben Stokes blasted them to victory at Headingley in the 2019 Ashes. Series drawn 2-2.

And finally…..

The other cubicle…

Travelling down the coast road I needed to use the  toilet. I stopped at a rest area and headed for the toilet,  went into the cubicle and this is what happened… “Hi, how are you?”  Now…I’m not the type to start a conversation in a toilet and I don’t know what got into me, but… I answered… “Doin’ just fine!”  then the other person said:  “So what are you up to?”  What kind of question is that? I’m thinking….  this is too bizarre… so I said:  “Uhhh, I’m like you, just travelling!”  At this point I was just trying to get out as fast as I could  when I heard another question.  “Can I come over?”  OK, this question was just too weird for me but I figured  I would just be polite and end the conversation…so I said:  “No.. I’m just a little too busy right now !!!”     Then I hear the person say nervously…  “Listen, I’ll have to call you back. There’s an idiot in the other cubicle who keeps answering all my questions                  Mobile phones, don’t you just love ‘em

Clarence

XXXX