ASX 200 surged 35-points to 6794 (0.5%) in late trade. Banks were the strength and industrials, as the Big Bank Basket rose to $170.05 (1.1%) after ANZ joined the fray, up 2.2%. Seems $3.5bn was an easy raise for a good acquisition. CBA up 1.7%, elsewhere financials flat, MQG up 0.4% and SUN dropping 2.1%. MFG kicked again rising 2.8%. Healthcare out of ICU with CSL rising 1.4%, RMD up 2.5% and SHL doing well as CV19 cases mount. Industrials better, TLS up 1.5%, WES up 1.7% and ‘old skool’ stocks REA up 5.0% and SEK up 2.0%. Staples better COL up 1.3% and WOW up 1.0% with tech stocks powering ahead again, WTC up 3.6%, XRO up 3.3% and the All–Tech Index better by 3.4%. REITs eased back led by GMG down 0.1%. In resources, iron ore stocks on the nose, BHP down 0.9%, FMG off 1.1% and oil and gas flopped with both WDS  down 4.4% and STO under pressure on production reports, down 1.4%. Lithium stocks found a friend in Musk who said that it was a licence to print money, LTR up 11.2% on a KV update, CXO doing well up 6.5% and PLS up 3.2%. Coal stocks finding sellers with WHC down 4.0%. In corporate news, Z1P soared again as it revealed a cunning plan to improve the business, TLX up 20.7% on its quarterly report, LNK agreed to a new bid from Dye and Durham although ACCC could still be an issue. The stock rose 12.6% on the news but still a discount to the bid. Production and quarterly reports continuing, nothing on the economic front. Asian markets mixed as BoJ does ‘nashi’ again.10-year yields steady at 3.53%                                                                                                                  

• Winners: TLX, SYA, AIS, KLS, LNK, NVX, LTR, VUL
• Losers: IMU, FCL, YAL, MYX, WDS, SGM, WHC, 29M
• Positive sectors: Banks. Tech. Lithium. Staples. Healthcare.
• Negative sectors: Iron ore. Oil and gas. Coal.
• High 6781 Low 6744 Solid close. SPI Expiry today.
• Big Bank Basket: Surges to $170.05(1.1%). ANZ back online.
• All-Tech index: Up 3.4%
• Gold: Lower at $2449
• Nord Stream in process of reopening. ECB in focus.
• Bitcoin: Drifts back to US$22,906
• Aussie Dollar: Eases to 69.11c
• 10-Year Yield:  Steady at 3.53%
• Asian markets: Japan up 0.2%. China down 0.6% and HK down 0.9%
• US Futures: Dow up 128 Nasdaq up 51
• European markets eye ECB move and Italian politics. First rise in 11 years. 10 years since ‘whatever it takes’. Markets set for a slightly positive opening. Not Italy though.

MAJOR MOVERS

• TLX 20.65 positive quarterly report.
• AIS +17.5% Noosa Mining Conference presentation
• LNK +12.63% revised scheme of arrangement.
• LTR +11.21% good pop on Kathleen Valley update.
• LKE +6.43% short seller punished again.
• VUL +8.76% lithium back in fashion.
• BRN +6.64% kicks again.
• BUB +6.14% starting to bubble higher.
• CXO +6.50% lithium exposure.
• AXE +14.17% modelling shows compatibility with existing fab process.
• PDI +8.33% change of director’s interest.
• Z1P +16.54% results update.
• TLG +8.09% ECA finance support for anode project.
• GDC +13.61% thin volume.
• WDS -4.39% Q2 report.
• WHC -4.04% coming off the boil.
• HZR -16.67% CDP Schedule delay.
• Speculative Stock of the Day: IOU Pay (IOU) +24.62% Business strategy update presentation. Strong cash and balance sheet. BNPL in Malaysia.

IN THE NEWS

• Zip Co (ZIP) Q4 TTV $2.2bn, +20% vs a year ago. It said abandoning the SZL merger will bring profitability quicker. Cash transaction margins increased to 2.4% from 2.3% in the third quarter. It said US bad debt rates decreased to 2.7%  for the June quarter, with an exit loss rate of 2.2% at the end of the quarter. It said bad debt rates in its Australian business were declining, without giving further details.
• Santos (STO) Q2 production (mmboe) 25.5 vs quarter-ago 26. FY production and sales volume guidance narrowed. It posted $US843m of free cashflow in the second quarter, slightly ahead of the first quarter.
• Newcrest Mining (NCM) Q4 gold production 637Koz vs quarter-ago 487Koz. FY22 gold production of 1.9m ounces and copper production of 121,000 tonnes.
• Syrah Resources (SYR) Q2 Balama graphite production 44Kt vs quarter-ago 46Kt. Significant sales order book with more than 90Kt of natural graphite sales orders for Q2 and into H2.
• Metcash (MTS) chairman Rob Murray to retire, Peter Birtles appointed replacement.
• Electro Optic Systems Holdings (EOS) appoints Andreas Schwer as CEO.
• Woodside Energy Group (WDS) Q2 delivered production 33.8 mmboe, +60% vs a quarter ago. Sales revenue US$3.44bn, +44% vs a quarter ago. It has also scrapped the plan to sell a stake in its Sangomar oil project in Senega
• Evolution Mining (EVN) Q4 gold production 172.7Koz vs quarter-ago 148.8Koz at AISC of $1,290/oz.
• Link (LNK) agrees to a new deal with Dye & Durham at 481c.
• ANZ returns to trade after institutional entitlement offer completed. Now Ex Rights.

ECONOMIC NEWS/ BOND MARKETS

• Treasury Wine Estates (TWE) has raised the price of its latest Grange to $1000 a bottle. Put me down for a case!
• QAN – cancelled one in 12 flights in Australia last month, even more than in May. Virgin Australia pulled 5.8% of its services. Little more than half of Qantas’ domestic services were on time in June.
• MIN – Julie Bishop video goes private. Shame.

ASIAN MARKETS

• The Bank of Japan has kept short-term interest rates at negative 0.1% as expected. It also kept the 10-year Japanese government bond target around 0%. Sees inflation of 2.3% this year, before slowing after that.

• An An,the oldest-ever male giant panda in captivity has died at age 35 at a Hong Kong theme park.

US AND EUROPEAN HEADLINES

• Nord Stream comes back online today or does it?
• ECB expected to raise rates by 50bps today, first time in 11 years.
• Anti-Fragmentation Tool now being called ‘Italian Crisis’ tool. Or the Italian Job.
• Tesla sells the majority of its Bitcoin at a big loss.
• Biden says Pentagon does not support Pelosi visit to Taiwan.
• Commerce Secretary Gina Raimondo warned that the country’s current dependence on foreign computer chip manufacturing puts it at risk for a recession if it’s ever cut off.

And finally….

Clarence

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