ASX 200 fights back to close up 2 points at 7148 after a wobbly start. For the week the ASX 200 is down 2.6% as results season and China woes continue. Banks eased back again, CBA down 0.6% with the Big Bank Basket sliding to $ (). MQG fell 0.6% but MFG rallied 13.3% on a special dividend and cost-cutting. Insurers flat. REITs were dominated by GMG which has rallied an extraordinary 12% in two days as Data centres a new focus. Elsewhere REITS were sold off. Industrials were mixed, TLS fell 3.2% on broker comments, REA down 1.2% as DHG continued to fall, down another 4.0%. Consumer stocks eased back, ALL down 1.6%, COL fell 1.8% on an automation update, Utilities slightly better with ORG pushing up 1.9%. Tech going nowhere.  In resources, Iron ore stocks on a bounce BHP up 1.4% ahead of results next week, RIO up 0.9% and lithium stocks finding small support. Gold miners better. Oil and gas eased and coal stocks fell. In corporate news, results dominate, IMU fell 16.0% on a placement, ABG up 10.2% on results, LFS fell 1.7% on its results. No economic data locally, but Japanese inflation eased in core numbers. Asian markets weaker, Japan down 0.7%, China down 0.7% and HK down 1.6%. 10-year yields falling slightly, down to 4.23%.

HIGHLIGHTS

  • Winners: MFG. ABG, PWH, GMG, ING, AMC
  • Losers: IMU, GWA, SUL, CDA, TYR
  • Positive sectors: Iron ore. Gold miners. Utilities. Healthcare.
  • Negative sectors: Banks. Telcos. Consumer stocks. Insurers. Coal.
  • High 7168 Low 7125 Down from 7340 to 7148 or 2.6%
  • Big Bank Basket: Falls to 172.49( -0.6%)
  • All-Tech index: Down 0.3%
  • Gold:  Unchanged at $2962.
  • Bitcoin: Slips to US26512
  • Aussie Dollar:  Unchanged at 63.97c.
  • 10-Year Yield: Lower at 4.23%.
  • Asian markets: Japan down 0.7%, China down 0.7% and HK down 1.6%.
  • US Futures: Dow up 45 Nasdaq down 15
  • European markets looking at a slightly weaker opening.

MAJOR MOVERS

  • MFG +13.3% special div and cost-cutting.
  • ABG +10.2% Results.
  • GMG +7.3% embraces data centre move.
  • ING +6.0% chicken licking good.
  • COH +4.3% brokers falling for it still.
  • MGH +2.9% kicking again.
  • BCB +22.7% a merry old soul indeed.
  • SZL +11.2% update on Nasdaq trading.
  • PLL +5.9% development funds for A11.
  • IMU -16.0% another placement.
  • GWA -7.5% broker downgrades.
  • SUL -6.7% rethink.
  • DMP -3.3% end of World Cup.
  • ASX -2.5% broker downgrades.
  • DHG -4.0% broker downgrades.
  • JHX -3.0% US concerns.
  • IVZ -8.1% profit taking.
  • NXD -8.8% trading update weighs again.
  • MNS -12.4% no reason.
  • Speculative Stock of the Day: Orexplore (OXT) +117.4% signs a commercial agreement with BHP.

COMPANY NEWS

ASIAN MARKETS

  • Big trouble in Little China continues. Property developers are warning of widespread losses, Eighteen out of 38 state-owned enterprise builders listed in Hong Kong and the mainland reported preliminary losses in the six months ended June 30.
  • Japan’s annual inflation was unchanged at 3.3% in July, significantly higher than expectations of 2.5%.
  • Japan’s price growth in services hit 2% in July for the first time in 40 years.
  • The People’s Bank of China delivered its strongest-ever pushback against a weaker yuan via its daily reference rate, helping to support the currency.
  • Bid for US Steel promises national security through consolidation.
  • SpaceX marks down its holding in Bitcoin. Musk arrives in Japan.
  • VinFast shares have collapsed in US. Not much of a surprise. Down 34% yesterday.
  • Maui Emergency Management chief Herman Andaya resigned a day after he defended not activating emergency sirens in response to the catastrophic wildfires.
  • David Roche (global Strategist) suggested the market is due a “very big” downward correction, once many concurrent geopolitical and macroeconomic risks are properly priced in. Says China’s economic model is ‘washed up on the beach’.

US and EUROPEAN HEADLINES

  • Eurozone CPI. European markets opening slightly lower.

And finally…go the Lionesses!!!!

Clarence

XXX