ASX 200 closed up 16 points to 7139 (+0.2%) as the market returned from a long weekend. Global equity markets remain subdued ahead of the FOMC meeting and interest rate decision later in the week. Tech rallied following the NASDAQ, with the All-Tech Index up 2.4%, XRO up 4.2%,WTC +5.2%, and BRN +3.7%. Banks gaining ahead of US CPI tonight, led by MQG up 2.1%, and CBA up 0.8%. The Big Bank Basket up to $164.97 (+0.5%). Money managers found support, VUK up 1.0% and MFG up 1.1%. REITs mixed, GMG up 0.1% and HCW up 3.2% on a revaluation of assets. Resources struggling on demand concerns. Iron ore miners BHP and RIO are down 1.0% and 1.5%, respectively. Gold sold off as the probability of a rate pause by the Fed increased to 80.4%. EVN was down 2.3%, and NCM off 1.4%. Lithium was broadly down, AKE down 1.2%, and IGO up 0.8% on the appointment of the new CEO Ivan Vella. Coal stocks got sold off, YAL dropped 4.5%, and WHC down 1.9% as the Queensland government announced an increase in royalty payments in a bid to transition to renewable energy. Oil prices near lowest level in three months on demand concerns in China and the US. Energy stocks fell in lockstep with oil prices WDS -1.3%, BPT -1.9% and KAR -5.3%. In corporate news, DMP fell 5.9% after the company announced sales to fall below expectations for FY23, TNT +145% on 13c cash offer ($176m) from Thales, and MIN down 2.7% after reporting a fatality at Onslow Iron project, site operations have been suspended. In economic news, Westpac-Melbourne Institute Consumer Sentiment Index unexpectedly rose 0.2%, exceeding consensus for a flat reading while steadying near recession lows. NAB business confidence index unexpectedly fell to -4, below market expectation. Asian markets mixed; Japan’sNikkei hits 33,000 during trade, the first time since 1990 down, currently up 1.2%, HK up 0.2%, with China down 0.1%. Australian bond yields remain inverted, 10Y yield at 3.92%, and 2Y yield at 1.03%. Dow Jones futures up 28 points, and Nasdaq futures up 64 points.

  • Winners: NVX, DYL, PDN, LOT, RAC, PDI, RED, AUB
  • Losers: EMR, NIC, TIE, TER, OBM, BGL, MEI, DMP
  • Positive sectors: Tech, Telecoms, Healthcare, Banks Consumer Disc, Utilities
  • Negative sectors: Materials, Metals, Resources, Energy
  • High 7138 Low 7101.
  • Big Bank Basket: Slightly higher at $164.97 (+0.5%)
  • All-Tech index: Up 2.4%
  • Gold falls to $2898. Oil holds near three month low.
  • Bitcoin:  Falls to US$26037
  • Aussie Dollar: Pushes to 67.62c.
  • 10-Year Yield: Slips to 3.92%.
  • Asian markets: Firm Japan up 1.9% and HK up 0.2% with China down 0.1%.
  • US Futures: Dow up 28 Nasdaq up 64

MAJOR MOVERS

  • NVX +15.4% kicking off the floor post LGES deal last week.
  • DYL +10.2% PDN +9.4% uranium on the move.
  • RSG +4.6%MVL JV agreement with Marvel. The company not the comics.
  • BRN +3.7% tech buying.
  • LOV +4.9% feeling the Love.
  • PDI +6.3% change in substantial holding.
  • DMP -5.9% stuffed crust. Denmark closes, sales fall.
  • KAR -5.3% oil price falls.
  • DEG -5.2% gold bullion falls.
  • ELD -2.9% cratering again.
  • BET -6.5% downtrend resumes.
  • GAL -8.2% gold slips.
  • BKT -13.8% placement to raise $10m.
  • EMR -9.8% resources under pressure again.
  • Speculative Stock of the Day: Tesserent (TNT) +145% after a 13c cash bid from French company Thales.

COMPANY NEWS

  • Dominos Pizza Enterprises (DMP) – Reported that sales in the 2H have increased, but it anticipates that sales for FY23 will be below expectations. The company also expects non-recurring costs in FY24 and plans to shut down 27 underperforming stores in Denmark, which is projected to improve next year’s earnings.
  • Cedar Woods Properties (CWP) – Revised its full-year net profit forecast for FY23 to $30m, down from its previous expectation of surpassing its FY22 net profit of $37.4m. Attributed to construction delays caused by adverse weather conditions and supply chain constraints.
  • Macquarie Technology Group Ltd (MAQ) – Announced a 2.2m share placement at 5850c share to raise $130m the first capital raising since listing in 1999.
  • Sandfire Resources (SFR) – SFR and Avrupa Minerals have identified a high-grade polymetallic zone at the Sesmarias Prospect in Portugal, with drilling intersecting significant mineralisation including copper, zinc, lead, and silver.
  • Champion Iron Ltd (CIA) – Announced the resumption of railway services from its Bloom Lake mine to the port of Sept-Îles following recent forest fires in the region.
  • HealthCo Healthcare & Wellness REIT (HCW) – Reported a net valuation gain of $71m for June, representing a 4.5% increase from the previous valuation. The gain was driven by the recently acquired Healthscope Knox Private Hospital development project.
  • SILEX Systems (SLX) – SLX’s joint venture with Cameco, Global Laser Enrichment (GLE), is accelerating its activities to leverage opportunities in the global nuclear fuel supply chain. They aim to complete a commercial-scale pilot demonstration of the SILEX uranium enrichment technology by mid-2024.
  • IGO Ltd (IGO) – Appoints Ivan Vella as CEO. Vella is head of the aluminium division at Rio Tinto in Canada.
  • Anteris Technologies Ltd (AVR) – Presented new patient data at the TVT conference, confirming DurAVR™ THV’s excellent haemodynamic performance at 30 days. With a 100% implant success rate and no complications in the study involving 7 patients.
  • Mineral Resources Ltd (MIN) – Reported fatality at Onslow Iron project. Site operations have been suspended.
  • Magnis Energy Technologies Ltd (MNS) – $25m facility completed, with no further shares to be issued.
  • Tesserent Ltd (TNT) – Thales offers 13c in cash ($176m) to acquire TNT, which has unanimously recommended the bid, pending approval from the Foreign Investment Review Board.
  • Incitec Pivot (IPL) – The CEO of the fertiliser business is leaving the company as doubts continue to grow over the demerger of the division. Incitec Pivot said the de-merger of the fertiliser and the Dyno Nobel explosives business was still a “key strategic priority”, even though it had been delayed.

ECONOMIC & OTHER HEADLINES

  • The Westpac Consumer Sentiment index unexpectedly increased by 0.2% in June, surpassing market expectations of no change and rebounding from a 7.9% decline in the previous month.
  • Australia’s NAB business confidence index for May 2023 came in at -4, short of market expectations and April’s reading of 0, marking the third negative reading this year.
  • National Bank of Australia has revised its forecast on the peak cash rate to 4.6% and lowered expectations on GDP growth.

ASIAN MARKETS

  • Nikkei continues to scale heights not seen since 1990.
  • The People’s Bank of China lowered the seven-day reverse repurchase rate by 10 basis points to 1.9%, according to a statement Tuesday. It was the first reduction in the rate since August 2022.
  • Toyota spiked 5% today after the company announced it will introduce a full lineup of battery electric vehicles with “next generation” batteries from 2026. These will be developed and manufactured by a new EV unit called BEV Factory, which was established in May.

US AND EUROPEAN HEADLINES

  • US CPI report due this evening.
  • US junk loan defaults surge as higher interest rates start to bite.
  • Trump due in court today.
  • MPs to grill UK financial watchdog over 2-year probe into Odey Asset Management.
  • Chocolate prices have risen by 14% in the past year, according to consumer intelligence database NielsenIQ. Sugar, another principal ingredient of chocolate, is also seeing price spikes hitting an 11-year high.

And finally…..

Clarence

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