ASX 200 rallies 78 points to 7057 (+1.1%) on positive US leads and CPI number. Risk on, as the shorts are being punished across the board still. Resources leading the charge higher, BHP up 2.2% with FMG up 1.3% and RIO down 3.9% but ex-div. Base metals and lithium back in demand. PLS up 4.4%, S32 up 4.1% and OZL rising 1.0%. Gold miners missing out a little as the stronger AUD hinders. NCM down 0.7%, though NST up 1.8%. Oil and gas mixed with WDS off 0.6% and STO up 2.3% with coal stocks slightly firmer, WHC up 1.4% and NHC up 1.7%. Banks did well with the Big Bank Basket up to $177.76 (+0.5%). CBA the only faller as brokers were ‘ho hum’ on numbers yesterday. NAB recovering 1.0% with insurers better after the QBE results pleased the market. The sector better as QBE rose 3.3% and SUN up 1.2%. AMP reported but failed to inspire, down 0.9%. MFG had a solid day, up 3.5% and GQG rose 4.9% on FUM and results. Healthcare better on sentiment shift, CSL up 0.9% and RMD doing better up 1.4%. Industrials firm with WES up 2.2%, ALL rising 2.9% and ‘old skool platform’ stocks rising, REA up 4.6% and SEK up 5.4%. Staples and defensives underwhelming. Tech doing well despite CPU down 5.1%, XRO up 5.4% and 360 firing ahead by 13.3%. The All Tech Index up 2.3% In corporate news, TLS fell 1.3% after seemingly good results and the first dividend increase in years. QBE rallied on a positive surprise up 3.3%, STO better by 2.3% on the Hunter pipeline acquisition., In economic news, consumer inflation expectations have moderated a little. In Asian markets Japan is closed for Mountain Lion day, China is up 1.5% and HK up 2.2%. 10 -year yields pushed a little higher to 3.29%.
- Winners: LKE (again) 360, ASM, NVX, SWM, VUL, SQ2, SYA
- Losers: OFX, CPU, BLX, 5EA, SIG, VNT
- Positive sectors: Everything.
- Negative sectors: TLS
- High 7077 Low 7010 Relative calm.
- Big Bank Basket: Better at $177.76 up 0.5%.
- All-Tech index: Up 2.3% CPU stumbles again.
- Gold: Slips to $2526
- Bitcoin: Better at US$24474
- Aussie Dollar: Bouncing to 70.80c
- 10-Year Yield: Up to 3.29%.
- Asian markets better Japan closed for another holiday. China up 1.5% and HK up 2.2%.
- US Futures: Dow up 70 Nasdaq up 39.
- European markets: opening higher across the board.
- LKE +20.83% now up 125% in two months.
- NVX +10.85% battery stocks on a charge
- 360 +13.26% tech rally rolls on.
- SQ2 +8.42% Block higher in US.
- SYA +7.55% VUL +8.89% lithium on fire again.
- MYX +5.63% cashed up value here?
- 1MC +40.00% second Nevada lithium project secured.
- WZR +25.00% recovering nicely.
- CTT +11.83% luxury goods are back.
- PH2 -5.75% capital reorganisation completed.
- BCB -6.35% coal slipping a little
- OFX -5.78% chairman’s address.
- CPU -5.12% broker downgrades.
- APA -2.22% boring is bad again.
- AR1 -10.00% completes placement
- Speculative Stock of the Day: Ragusa Minerals (RAS) +65.00% NT Lithium project review works confirm high grade lithium. Good volume too.
In the News
- AMP (AMP) first half underlying profit $117m vs consensus $121.9m. To return $1.1bn of capital to shareholders via on-market buyback. Eyes further capital returns in FY23.
- Telstra Corp (TLS) full-year adjusted EBITDA $7.25bn vs guidance $7.0-7.3bn and consensus $7.29bn. Final dividend of 8.5c. Expects FY23 underlying EBITDA of $7.8-8.0bn. First dividend lift in seven years.
- QBE Insurance Group (QBE) first half adjusted cash profit US$169m vs consensus US$122.8m.Gross premiums written US$11.61bn vs consensus US$11.50bn. Interim dividend 9c vs consensus 6c.
- James Hardie Industries (JHX) chairman Michael Hammes to retire after AGM in November.
- Paradigm (PAR) is raising $62m at 130c through Bell Potter. It told investors it was six weeks away from PAR 008 trial results, which would ascertain if its drug candidate could bring about a modification of the osteoarthritis disease biomarkers.
- Santos (STO) – Santos has acquired Hunter Gas Pipeline to assist with getting gas from its Narrabri project to the domestic market.
- Adore Beauty (ABY) – CEO Tennealle O’Shannessy will step down in February 2023 to head up ASX-listed IDP Education.
- GQG Partners (GQG) – reported net inflows of $US6.3bn for the six months to June, and ended the period with $US86.7bn in funds under management. This was up 2.3% on the previous period.
- Mirvac (MRV) – Revenue grew by 20% to $2.8bn in the 2022 financial year, while profits attributable to security holders inched 1% higher to $906m. Operating profit jumped 8% to $596m. The company will pay a 5.1c in distributions.
Economic News/Bond Markets
- Consumer inflation expectations for August fell to 5.9%, down from 6.3% registered in July, according to survey data from Melbourne Institute.
- Melbourne’s office occupancy rates fell further to 38%.
- Chinese CV19 cases have risen to a three-month high, with almost half of the 1,993 infections reported nationally in Hainan.
- Mountain Day in Japan.
- Several Chinese provinces pledged to meet their growth goals for the year even as top leaders downplayed the national target of “around 5.5%”.
- Kim Jong-Un has declared victory in the North Korean fight against Covid, with the leader’s sister revealing he had suffered from fever and vowing “deadly retaliation” against South Korea which it blames for causing the outbreak.
US and European Headlines
- Nancy Pelosi said the US couldn’t let China establish a “new normal” around Taiwan
- Trump pleads the fifth. Fox predicts record political ad spending in US midterm elections.
- The FCC rescinded $2 billion in grants to Elon Musk’s company and an internet provider, saying the companies weren’t likely to meet funding requirements.