ASX 200 closed down one point at 6975, well off intra-day highs as enthusiasm waned, and iron ore stocks sagged. BHP down 1.1%, FMG down 2.0% and RIO off 1.6%. Base metals were slightly weaker but hardly registering on the same level, lithium stocks a little mixed, PLS down 1.1%, LTR up 3.7%, and AKE up 1.4%. Gold miners eased back slightly, with NCM off 1.0%, DEG down 2.6%, and NST falling 0.1%. Oil and gas down hard as crude sank, STO down 1.3% and WDS off 3.1%. Banks were a beacon of green light today, with the Big Bank Basket up to $177.33 (+0.9%). CBA the biggest and the brightest, with a 1.3% gain. Other financials caught in a trap, can’t get out, MQG eased 0.3%. Insurers mixed. Healthcare slightly lower as CSL slipped 0.7%, FPH fell 2.5%, and industrials flat. COL down 0.6%, EDV off 2.5%, and WOW falling 1.1%. Telcos rose as TLS rallied 1.3% and tech stocks better, with XRO up 0.7%, and WTC up 0.9%, the All–Tech Index up 2.2%. In corporate news, ORI returned from its outsized cap raise and fell 9.3%, and NWH rose 10.9% on its results update. ALX saw IFM raid another few percent taking it to 19%, the stock rose 3.5%. On the economic front, the BoP came in better than expected. Asian market slightly firmer despite fly-bys in Taiwan. 10-year yields up to 3.12%.

Headlines

• Winners: PBH, NWH, IMU, SYA, 360, SQ2, OCL, BGA, APX
• Losers: ORI, GNC, NEU, FCL, SLX, ASM, ZIP
• Positive sectors: Banks. Telcos. Tech.
• Negative sectors: Iron ore. Energy. Healthcare. Supermarkets.

• High 7021 Low 6975. Closes on lows.
• Big Bank Basket: Higher at $177.33 up 0.9%.  ANZ Rights up 2.4%
• All-Tech index: Higher by 2.2%.
• Gold: Steady at $2546
• Bitcoin: Up to US$23100
• Aussie Dollar: Rises to 69.61c
• 10-Year Yield:  Up to 3.13%.
• Asian markets: Japan flat, China up 0.4% on Beijing rage and HK up 1.7%.
• European markets: Looking at a firmer open. BoE in focus.
• US Futures: Dow down 23. Nasdaq down 29.

Major Movers

• PRL +21.74% HyEnergy agreement attracting buyers.
• IMU +10.87% punters are back.
• PBH +11.58% short covering continues.
• TYR +17.54% great minds think alike.
• CTT +10.32% on the move again as discretionary spending is not dead after all.
• NWH +10.94% results update.
• SQ2 +8.90% it’s hip to be with results due.
• 360 +9.58% following Nasdaq higher.
• SYA +10.26% N.American lithium restart continues on track.
• AQZ +3.80% about time it rallied.
• ALX +3.48% IFM buys more to 19% now.
• ORI -9.3% capital raising weighs.
• NEU -5.89% sliding back.
• ZIP -4.53% profit taking.,
• LYC -3.46% sellers back.
• WHC -3.12% SMR -2.83% coal FOMO losing shine.
• Speculative Stock of the Day: Lanthanein Resources (LNR) +25.71% Investor presentation yesterday brings buyers.

In the News

• Medical Developments International (MVP) launches $15m placement and $15m 1-for-9.5 rights issue at 200c. Fund used for expansion of the Australian business into the emergency sector and further growth in the ambulance sector and execution of the company’s direct sales strategy in the large European market. FY underlying EBIT -$14.7m. Revenue $22.4m, +37% vs year ago.
• Retail Food Group (RFG) CFO Peter McGettigan to step down to pursue other opportunities, departing later in FY23.
• NRW Holdings (NWH) full-year preliminary EBITA $157m vs guidance $150-155 vs consensus $147.2m. Revenue $2.4bn vs guidance $2.4-2.5bn.
• ASX (ASX) July average daily value $5.19bn, down 3% vs a year ago. Volatility 0.6%, +0.1% and total capital raised $9.3bn, down 10%.
• Newcrest Mining (NCM) – instability identified at Cadia mine but not expected to impact FY23 production.
• Orica (ORI) completes $650m placement at 1600c.
• Magellan Financial Group (MFG) FUM at the end of July was $60.2bn vs $61.3bn at the end of June. Institutional money flowing out.

Economic News/Bond Markets

• Australia’s trade surplus struck a record $17.7bn in June, better than the $14bn the market had anticipated, in a month driven by demand for commodities and elevated prices.

• In June month 2022, exports of lithium concentrates reached a record high of $1.163bn, up $1.073bn (1189%) from June month 2021. For most of 2021, monthly lithium exports did not exceed $250m.

Asian Markets

• Softbank has raised as much as US$22bn in cash through the sale of prepaid forward contracts using Alibaba Group.
• China launched unprecedented live-fire military drills in six areas that ring Taiwan. Taiwan officials have said the drills violate United Nations rules, invade Taiwan’s territorial space and are a direct challenge to free air and sea navigation.
• Zillingo a tech darling looks to be in trouble after raising more than US$300m in its history. Has rocked confidence in tech stocks in the region.
• Toyota has kept its guidance unchanged for the year. Says production challenges continue. Profit also fell short of estimates in the April-June quarter, at 579bn yen versus the prediction of 808bn yen.

US and European Headlines

• BoE rate hike ahead. 50bps expected. Scraps Mortgage affordability test.
• German industrial orders for June down 0.5% M/M. Addidas numbers below expectations.
• OPEC Plus agrees to a 100k barrels a day increase from September.
• Typical UK household expected to see a GBP800 rise in energy costs in October.
• Washington ratifies Sweden and Finland’s NATO membership.
• Kiss of Death for gold as Jim Cramer says buy.
• Nearly 8,000 digital wallets have been drained of just over $5.2 million in digital coins including Solana’s sol token and USD Coin (USDC), according to blockchain analytics firm Elliptic.

And finally….

Clarence

XXX