ASX 200 closed down 43 points to 7312 (-0.6%), sliding for a second straight session, tracking losses on Wall Street overnight. Tech led the laggards today, XRO -2.7%, REA -0.8% SQ2 -1.9%. All-Tech index down 1.0%. Iron ore miners slipped, tracking the softening price in Asia. BHP down 1.2%, RIO off 1.7% and FMG down 1.3%. Big four banks are all down. CBA -1.0%, NAB -0.6%, ANZ -0.4% and NAB -0.6%. Big Bank Basket down to $177.55 (-0.8%). Energy stocks struggled, WDS -0.7% and BPT -1.2%. Lithium stocks mostly down, MIN -0.6%, AKE off 1.6%, but PLS bucked the trend, up 1.4%. Healthcare had a bad day, but insurers found some support, QBE +1.2%, SUN +0.7% and IAG up 1.9%. Consumer discretionary stocks mixed WES off 0.3%, JBH down 0.9%, and QAN -1.1%. REITS weakened SCG off 1.1% and VCX down 1.0%. In corporate news, JHX down 2.8% on a new deal with US builder D.R. Horton, DOW -3.8% will recognise a $549m impairment in its upcoming financial results, BGL +3.1% reported “exceptionally high grade” gold hits in its drilling program, LNK -2.7% despite anticipating a 4.5% rise in revenue and EBIT surpassing guidance range. In economics, Australia’s trade surplus widened to a three-month higher of $11.3bn in June from a downwardly revised $10.5bn. Retail turnover fell by 0.8% MoM, marking the second time a drop in retail trade so far this year, as cost of living pressures weigh on consumer spending. Caixin China General Composite PMI fell to 51.9 in July the seventh straight month of growth in private sector activity but the softest pace since January. Asian markets mixed, Japan extending losses from the previous session, down 1.5%, HK and China up 0.5%. Australian bond yields higher, 10Y yield up 8bps to 4.10%. Dow Jones futures up 20 points, and Nasdaq futures down 15

HIGHLIGHTS

  • Winners: TIE, CXL, AZS, ABB, STX, WGX, PPN, VUK
  • Losers: ABPDA, SGR, DOW, PNI, GQG, ADT, INR, RPL.
  • Positive sectors: Insurers.
  • Negative sectors: Oil and gas. Iron ore. Banks. Fund managers. Tech.
  • High 7346 Low 7288
  • Iron ore futures down 1.9% in Singapore.
  • Big Bank Basket: Smacked to $177.55 (-0.8%)
  • All-Tech index: Down 1.0%
  • Gold slightly better at $2960
  • Bitcoin: Slips to US29107
  • Aussie Dollar:  Falls at 65.34c
  • 10-Year Yield: Breaks up to 4.08%
  • Asian markets: Japan down 1.5% HK down 0.1%, China up 0.2%
  • US Futures: Dow up 35 Nasdaq down 15
  • European markets eye BoE decision.

MAJOR MOVERS

  • BBOZ +1.8% big volume again.
  • CXL +5.0% momentum building after FID yesterday.
  • AZS +4.3% continues to find favour.
  • VUK +3.3% broker upgrades.
  • TIE +8.0% increases gold production to 11,600oz in July.
  • 88E +1.3% quoted ex entitlement.
  • ASM +5.6% right name right place.
  • VVA +4.0% launches shareholder discount voucher.
  • WGX +3.5% bouncing a little.
  • ABPDA -4.2% continues to fall ex Storage King.
  • ASK -0.8% IPO continues to slip.
  • OFX -1.9% AGM address.
  • SVR -34.1% market update and trading conditions.
  • DOW -3.8% write down.
  • POS – Trading halt for yet another capital raising.
  • CTT -2.8% air leaking out.
  • PNV -3.2% skin scraped.
  • AIS -14.8% debt package and update.
  • LIN -11.9% Maiden resource estimate in Malawi.
  • SHJ -9.5% wears off J&J class action update.
  • RXM -12.0% completes placement.
  • Speculative Stock of the Day: LLI +71.9% – Exploration underway at high-grade Hidden Lake in Canada. Untested outcrops identified from hi-res satellite images. Not even drilling yet! 

COMPANY NEWS

  • Data published today by the Federal Chamber of Automotive Industries (FCAI) industry body reports 96,859 new vehicles as sold last month, up 14.7% on the same month the prior year. Since the start of this year 678,618 new vehicles have been reported as sold.
  • Toyota remained Australia’s top-selling new-car brand, with 19,191 deliveries reported – down 1.9% compared to July 2022 as it continues to face shipping delays, as with most other brands. Mazda second with Ford third.
  • Australia expects to hear news within days on China’s four-month review of its punitive tariffs on Australian barley exports, Trade Minister Don Farrell said.
  • Chinese regulators have proposed rules that would limit the smartphone screen time of people under the age of 18 to a maximum of two hours per day.
  • Chinese authorities have escalated probes into commodity trades they suspect are being used to obtain cheap financing or government subsidies rather than serving the real economy.
  • Businesses now see geopolitical tensions as the biggest threat to the global economy, according to the latest survey by Oxford Economics.
  • BoE due today. UK CPI eases slightly.
  • Trump set to make first court appearance in 2020 US election case.

And finally….

Clarence

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