Blood on the streets on ASX 200 today, closing down 90 points to 7163 (-1.2%), as investors exercised caution after the FOMC meeting minutes reaffirmed expectations that interest rates would remain higher for longer. Financials and miners weighed, with the big four banks losing between 1%-2%. The Big Bank Basket took a hit down to $171.07 (-1.6%). Copper prices fell overnight as overseas data dampened demand outlook. BHP, RIO and FMG all lost over 1.4% each with iron ore dropping in Asia. Energy stocks fell while oil prices steadied as demand fears offset tighter supply forecasts. WDS off 1.4%, and STO down 0.5%. Tech stocks struggled for direction but finished up with the All-Tech Index up 0.2%. SQ2 surprised, jumping 3.9%, XRO +0.1% and WTC +1.0%. Defensive sectors were no good. Healthcare and telecoms both in the red, RHC down 1.4%, and TLS off 0.5%. REITS down as bond yields rose. Retailers hit hard WES -2.6%, DMP -3.2%, and MYR down 4.6%. In corporate news, MFG -8.3% after it disclosed $2.1bn in outflows in June. BUB -2.2% disclosed the outcome of its strategic review. JLG completed $65m institutional placement. TIE -1.0% on Commercial production news. In economic news, Australia’s trade surplus exceeds expectations widening to $11.79bn in May 2023 from a downwardly revised $10.45bn in April. Asian markets are down, Japan’s Nikkei down 1.3%on tech pullback, HK down 3.1%, with mainland China off 0.6%. Australia’s 10Y yield up to 4.13%. Dow Jones futures down 112 points, and Nasdaq futures down 70 points.

HIGHLIGHTS

  • Winners: WBT, ARU, SQ2, RSG, ADT, LRS, CTT
  • Losers: SGR, MFG, LIC, GMD, PNV, PMT, RED
  • Positive sectors: Tech. New and Old.
  • Negative sectors: Everything else.
  • High 7244 Low 7146. Big range, low volumes.
  • Iron ore futures lower in Asia. Oil slightly better.
  • Big Bank Basket: Lower at $171.07 (-1.61%)
  • All-Tech index: Up 0.2%
  • Gold Steady at $2884
  • Bitcoin: Eases to US$30,474
  • Aussie Dollar:  Eases to 66.55c
  • 10-Year Yield: burst through to 4.13%
  • Asian markets: Japan down 1.3% HK down 3.1% and China down 0.6%
  • US Futures: Dow down 112 Nasdaq down 70
  • European markets to open sharply lower.

MAJOR MOVERS

  • WBT +5.1% kicks again. Not sure why!
  • AZS +2.8% lithium fave for now.
  • ARU +4.5% Chinese moves on rare earths potentially.
  • JDO +2.9% gaining strength.
  • SBM +19.0% readjusted after GMD deal.Now Ex GMD distribution.
  • CHL +6.8% side gigs doing well.
  • VGL +10.2% business transformation and Q4 update.
  • MFG -8.3% money leaving the building again.
  • SGR -8.7% debt funders circling.
  • PMT -5.4% rethink.
  • INR -4.5% ditto.
  • LOV -3.9% not finding any today.
  • ARB -4.3% broker downgrades.
  • WR1 -6.4% lose some today.
  • GT1 -7.3% unwinds recent gains.
  • PNV -5.9% slipping away
  • Speculative Stock of the Day: Pacific Edge Ltd (PEB) +95.4% welcomes the decision by Novatis and First Coast to delay the implementation of the local coverage determination which would have seen Cxbladder cease in the US from 17th July. A new process and open meetings and public comment period to come. No time frame though.

COMPANY NEWS

  • Star Entertainment Group (SGR) – Peter Hodgson, the chairman of Judo Bank (JDO), has been appointed as a non-executive director (NED) on the board of SGR.
  • Magellan Financial Group (MFG) – Reported net outflows of $2.1bn for the month of June. The total funds under management decreased from $41.4bn in May to $39.7bn. The company also announced earning $11m in performance fees for the year ending June 30.
  • Sims Ltd (SGM) – CEO Alistair Field, has announced his retirement, Stephen Mikkelsen, has been appointed as the new CEO of Sims.
  • Waypoint REIT (WPR) – Increase in weighted average capitalisation to 5.4% and a net reduction in the portfolio value of $27.1m (-1%).
  • Johns Lyng Group Ltd (JLG) -Successfully completed its fully underwritten institutional placement, raising $65m. The placement received strong support from existing shareholders and new investors, with approximately 12.5m new fully paid ordinary shares being issued at a price of $5.15 per share.
  • Centuria Industrial REIT (CIP) – Completed external valuations on 38 of its 89 investment properties. The completed valuations show a like-for-like decrease of $80.6m on prior book values, resulting in a 2.1% decline in the portfolio. The Weighted Average Capitalisation Rate (WACR) for the total portfolio expanded by 60 basis points to 5.26%.
  • Tietto Minerals (TIE) – Announced the declaration of commercial production at its Abujar Gold Mine in Cote d’Ivoire. The milestone was achieved in less than 18 months since commencing construction activities on the Abujar process plant. Tietto produced 15,592 ounces of gold in the June 2023 quarter, following 9,500 ounces in the March quarter.
  • Vista Group International (VGL) -Initiated an organizational transformation aimed at improving financial performance. The company expects to achieve positive free cash flow during Q4 2024, a year earlier than previously guided. The transformation will also result in a reduction in the global workforce by 6-8%.
  • Cirrus Networks (CNW) – Announced an expected 8% increase in revenue for the financial year 2023, reaching $112m. The company also reported a significant rise in EBITDA up 126% to $4.8m compared to the previous year.
  • European Lithium Ltd (EUR) – Entered into a share subscription facility for up to $125m from GEM Global Yield.
  • Bubs Australia (BUB) – Announced the results of its strategic review. The company plans to increase its market share in the United States, establish new trade partnerships in China, and leverage its competitive advantage in producing goat milk formulas. Has reduced annual operating expenses by $10m and aims to halve its monthly cash burn from $5m to $2m.
  • St Barbara (SBM) – Ex the GMD entitlement today. Closing price adjusted to reflect that. Record date 7th July. GMD shares wiill be transferred to SBM shareholders 11th July.

ECONOMIC & OTHER HEADLINES

  • Australia’s trade surplus reached $11.8bn in May, driven by strong commodity prices (??), with goods and services exports rising by $2.4bn and imports increasing by $1.1bn

ASIAN MARKETS

  • Janet Yellen lands in Beijing.
  • The US is considering restrictions on China’s access to computing over the Internet, or the ‘cloud’.
  • Chinese official talks about hitting back at US through rare earths.

US AND EUROPEAN HEADLINES

  • ‘Threads’ kicks off with a bang. 5m sign up in first four hours. Twitter without the DM.
  • US JOLTS data tonight.Jobless Claims. NFP tomorrow night.
  • German Industrial production jumps on Military spending.
  • OPEC meeting in Vienna continues. Oil pushing up slightly.
  • Thyssenkrupp Nucera (a new hydrogen IPO) hits off tomorrow.
  • CAB Payments hits the London Stock Exchange today. Only 12 IPOs this year in London.Blame Brexit.
  • The U.S. Navy prevented Iranian warships from seizing two oil tankers in international waters near Oman on Wednesday, according to an American military official.
  • Brussels to stick with plan for post-Brexit tariffs on UK EV imports from 2024.
  • Global commodities have seen a more than 25% slump over the last 12 months as reflected by the S&P GSCI Commodities index. Industrial metals have slid 3.79% during that period (up to June 30), while energy commodities like oil and gas have slipped 23%.

And finally….

Madonna is opening a new Indian restaurant.

It will be called ‘Poppadom Preach’

Can’t believe that Netflix have cancelled “Vivaldi” after only four seasons.

i’ve just joined a dating site for arsonists……….

i got a match straight away

Clarence

XXX