Monday 31st July – Australian Market Wrap | Beeks Downunder-Because not all financial news is boring!

ASX 200 closed up 7 points to 7410 (-0.1%) in a narrow day of trading, boosted by a lower US inflation rate. Resources mixed after China’s manufacturing activity shrank for a fourth month this year. Iron ore miners slightly higher S32 up 0.8%, BHP up 0.5% and RIO up 0.4%. Energy continuing its bull run as Crude Oil has its best month in more than a year. STO up 0.3% and ALD up 1.2% Gold lower again as the USD climbs, NST -0.5% and SLR -20.2%. Banks mostly flat, with the Big Bank Basket up to $182.22 (-0.2%). MQG down 1%. REITS rose slightly. Tech mixed today, The All-Tech Index up 0.3%. SQ2 up 2%, and XRO up 0.1%. In corporate news, LYC gained 2.6% after record quarterly production of neodymium and praseodymium. ORG dropped 0.6% after reporting an 11% drop in revenue. SLR down 20.2% on reports of idling its Sugar zone mining and processing activities in 2024. Quiet on the economic front, the Melbourne Institute’s Monthly Inflation Gauge indicated that prices accelerated to 0.8%, rebounding from June’s 10-month low of a 0.1% rise. Asian markets gaining as China promises further measures to help out the economy and boost the property sector. Japan up 1.4%, HK up 1.2%, China up 0.3%. Australian bond yields mixed, 10Y yield up 0.4bps to 4.06% and 2Y yield down 0.7bps. Dow Jones futures down 31 points and Nasdaq futures down 20 points.

HIGHLIGHTS

Winners: EMR, MMS, AD8, AWC, GRR, NCK
Losers: SLR, PMT, RSG, ARU, IGO, KGN, MP1
Positive sectors: Healthcare. REITs.
Negative sectors: Financials. Lithium. Staples.
High 7434 Low 7374 Big range no conviction.
Big Bank Basket: Higher at $182.22
All-Tech index: Up 0.3%
Gold steady at $2926
Bitcoin: Rises to US29600
Aussie Dollar: Steady at 66.76c
10-Year Yield: Higher at 4.05%
Asian markets: Japan up 1.0% HK up 1.2%, China up 0.7%
US Futures: Dow down 42 Nasdaq down 32
European markets opening flat.

MAJOR MOVERS

SGF +1.6% MMS +3.9% Novated lease business doing well.
EMR +6.6% quarterly report.
SIQ +2.6% broker upgrade.
LYC +2.6% quarterly report.
NCK +2.7% retail bounce.
AMA +20.8% guidance update.
EOS +8.6% investor presentation.
ATA +8.0% updated results date.
SLR -20.2% searching for Sugar Zone. Production issues next year.
IGO -4.6% broker downgrade.
PMT -6.2% resource estimate disappoints.
ARU -5.0% appointment of independent power provider.
MP1 -3.8% profit taking.
CXO -3.0% lithium stocks under pressure.
M7T -13.6% quarterly report.
SPL -3.2% quarterly report and partner program update.
3DP -19.5% early gains fall away.
BET -16.7% investor update.
Stock of the Day: Kairos Minerals (KAI) +20.0% quarterly report, drilling set for lithium anomalies in Manna deposit in WA.

COMPANY NEWS

HEADLINES

Retail sales in Japan grew 5.9% YoY, continuing a 16-month expansion, with the automobile sector leading the growth at 19.3%. Industrial output climbed 2% in June compared to the month before, lower than the 2.4% expected
BoJ minutes show Kuroda’s ‘shock and awe’ approach to the economic stimulus was supposed to be short-term. Finally inflation appeared ten years late!
China manufacturing PMI came in at 49.3 in July, slightly better than the expected 49.2. Non-manufacturing PMI slowed to 51.5 in July, its fourth-straight monthly decline.
The National Development and Reform Commission (NDRC) released a wide-ranging policy plan today. It focuses on focuses on removing government restrictions on consumption, such as car purchase limits, improving infrastructure and holding promotional events like food festivals. Officials from the NDRC and other ministries will hold a press briefing at 3pm in Beijing to outline measures to expand consumption.
BHP expects Indian steelmaking boom to drive its coal business.