ASX 200 closed up 33 points to 7340 (+0.5%), snapping a two-day decline, led by miners and energy stocks, although investors exercised caution ahead of local quarterly CPI results and FOMC meeting both due on Wednesday. Iron ore miners led the advance, sector majors BHP, RIO and FMG up 3.3%, 3.4% and 4.6%, respectively. Energy stocks rose as oil prices extended gains, with WTI crude futures hovering around a 3-month high. Index heavyweights STO up 0.6% and WDS up 1.2%. Lithium miners did well, MIN up 3.9%, AKE up 2.3%, and PLS gained 5.2% despite reporting a 33% drop in spodumene prices in the June quarter. Bucking the trend, bank stocks slipped, with the big four all losing between 0.2% to 1.1%. Big Bank Basket down to $178.6 (-0.3%). Gold stocks edged higher, NST +0.3%, and EVN up 0.8%. Consumer discretionary was the worst-performing sector today, extending losses into afternoon trade down 0.8%. WES down 0.9%, ALL off 0.5% and JBH slipped 1.0%. Tech struggled, XRO down 1.2% and CPU off 0.8%. In corporate news, 29M fell 6.6% after reporting lower total site costs at its Golden Grove mine in June quarter, COF -0.4% divests 35 Robina Town Centre Drive for $40m, MND +5.4% secured $200m contract with Albemarie, GNG up 3.8% secured $81m contract LOI from K92 mining and NCM off 0.1% despite reporting a 9% increase in gold production. Nothing on the economic front. Asian markets higher, Japan up 0.2%, HK rose 3.7%, and China jumped 2%, rebounding sharply from multi-week lows after China pledged to ‘ramp up policy’ support for its struggling economy.  Australian treasury yields edge lower 10Y yield up 4bps to 4.03%. Dow Jones futures down 13 points and Nasdaq futures down 1 point.

HIGHLIGHTS

  • Winners: GRR, SYA, MND, VSL, PLS, CIA, CHN
  • Losers: MAF, MSB, DMP, CCP, HGN, NUF, SGR
  • Positive sectors: Iron ore. Lithium. Oil and gas. Coal.
  • Negative sectors: Banks. REITs. Healthcare. Industrials.
  • High 7345 Low 7318. Narrow range. Decent bounce higher.
  • Big Bank Basket: Lower at $178.60 -0.6%
  • All-Tech index: Unchanged.
  • Gold slips to $2898
  • Bitcoin: Eases to US29145
  • Aussie Dollar:  Rises to 67.61c
  • 10-Year Yield: Flat at 4.00%
  • Asian markets: Japan up 1.3% HK down 1.4%, China down 0.3%
  • US Futures: Dow down 11 Nasdaq unchanged.
  • European markets barely changed at the open.

MAJOR MOVERS

  • SYA +6.7% bouncing back.
  • GRR +7.4% iron ore rebound.
  • PLS +5.2% good production numbers.
  • CHN +4.8% M&A talk.
  • MND +5.4% construction contract with Albemarle.
  • SFR +4.3% base metals rebounding a little.
  • WA1 +6.2% West Arunta continues to find friends.
  • BET +9.7% Bottom fishers.
  • MVP -19.3% whistling down.
  • SPL -10.0% sell-off returns.
  • ONE -16.7% $25m placement and SPP.
  • DMP -5.0% US parent falls on delivery issues.
  • CXO -2.8% broker downgrades.
  • KGN -4.0% tech under a little pressure.
  • WBT -0.2% slipping lower.
  • CEE- Capital raising $9.9m.
  • DTZ – raising $5m at 20c.
  • Speculative Stock of the Day:

COMPANY NEWS

HEADLINES

  • HK and China bounced hard on stimulus hopes.
  • Nuclear energy has never been part of Australia’s energy mix as it has abundant renewables according to Chris Bowen.
  • Australia’s share of coal generation fell from 59.1% in 2021 to 54.6% in 2022, but gas production increased by 1.2% in 2022 compared to the year before.
  • China’s top leaders vowed to ramp up policy support to boost domestic consumption as the post-COVID rebound has been slower than expected.
  • Oil traded near the highest level in three months as China announced another raft of measures to support its economy.
  • Elon Musk explains why he dumped the ‘Twitter’ name.
  • Wheat futures extended a surge to the highest level in five months after Russia attacked a port on the Danube river in Ukraine.
  • General Motors is set to report its second-quarter earnings before the open. Adjusted earnings per share of $1.85 and revenue of $42.64bn expected.
  • Microsoft and Alphabet reports after hours in US.
  • Novartis boss warns US drug pricing reform poses risk to public health

And finally….

Ive just read an article about a monk who claims he saw the face of Jesus in his margarine tub. He said. ” I can’t believe it’s not Buddha !”

During a visit to my local DIY centre an assistant asked if I wanted decking. Fortunately I got the first punch in.

Clarence

XXXX