ASX 200 rallied 45 points in quiet trade to 7157 (0.6%). Solid day on US optimism and Chinese stimulus moves. Banks leading the charge, CBA up 1.2% and NAB up 1.3%, with the Big Bank Basket up to $175.00 (+1.1%). MQG found some friends up 0.4%, with insurers slightly firmer. REITs positive led by GMG up 0.7%. Healthcare doing better, RHC up 2.5% and RMD rallying another 0.6% with CSL in demand. Industrials were slightly better. WES up 2.2% on broker upgrades, ALL up 1.4% and WOW up 1.2%. Retailers picking up slightly on better-than-expected retail sales numbers today. JBH up 1.4%, and PMV up 1.7%. LOV fell 4.3%, giving back some of last week’s bounce. Tech was mixed with WTC down 1.7%, XRO up 0.8%, and the All-Tech Index down 0.7%. Miners were mixed. FMG results were overshadowed by the CEO resigning after only 6 months, falling 5.1%, BHP up 1.2% and RIO rallying 0.7%. Lithium stocks fell, led by PLS down 4.0% on broker PTs. Gold miners better, EVN up 3.2% and NST up 2.7%. Oil and gas mixed with coal modestly firmer. In corporate news, HLO up 6.0% on the doubling of TTV, IMD hit the mud after a 22% profit fall, down 15.8%. NXT fell 2.6% despite numbers ahead of guidance.APX was whacked on bad numbers down 32.1% In economic news, retail sales came in at 0.5% better than the 0.3% forecast. Asian markets boomed on China’s latest support for the market. China up 1.5%, HK up 1.5%, and Japan up 1.5%. 10-year yields unchanged at 4.15%. Dow futures up 85 points. Nasdaq futures up 28 points. 

HIGHLIGHTS

  • Winners: PAC. TAH, GMD, VNT, IFM, SLR, BOE
  • Losers: SYA, IMD, GRR, BRN, CDA, SIQ, IRE
  • Positive sectors: Banks. Gold miners. REITs. Healthcare. Retail.
  • Negative sectors: Lithium. Telcos.
  • High 7162 Low 7121 Narrow range trade.
  • Big Bank Basket: Rises to $175.00(+1.1%)
  • All-Tech index: Down 0.7%
  • Gold:  Steady at $2978.
  • Bitcoin: Lower at US25958
  • Aussie Dollar:  Steady at 64.32c.
  • 10-Year Yield: Rallies to 4.16%.
  • Asian markets firms, China up 1.5%, HK up 1.3%, and Japan up 1.6%.
  • US Futures: Dow up 55 Nasdaq up 21
  • European markets opening slightly lower. Bank holiday in UK.

MAJOR MOVERS

  • PAC +5.1% low volume.
  • MAD +3.6% keeps heading higher.
  • IFM +4.3% results.
  • GMD +4.8% weekend article on CEO.
  • MFG +3.2% few brokers warming to it.
  • MAY +40.3% August sun in Cuba. Better oil flows.
  • 4DS +29.6% chip run.
  • DUG +10.2% investor presentation.
  • LIN +16.0% good volume too.
  • SYA -27.2% CEO quits abruptly.
  • IMD -15.8% results weigh.
  • BRN -10.8% no-brainer on results.
  • IRE -6.2% broker downgrades.
  • QAN -1.9% Joyce fronts cost of living inquiry.
  • APX -32.1% ‘challenging’ times. No second half fairy tale.
  • OPT -21.3% capital raising weighs.,
  • MSB -9.3% giving it all away.
  • FMG -5.1% Fiona Hick, CEO gone after 6 months.
  • CDA -7.8% investor presentation and results.
  • SIQ -7.3% sell-off continues.
  • BCB -25.2% strategic review and update.
  • Speculative Stock of the Day: 4DS +% basking in the recent imec announcement. Good volume too.

HEADLINES

  • Retail sales in Australia rose by 0.5% MoM in July, exceeding market expectations of 0.3%, reversing from a 0.8% fall the previous month.
  • House rents in one out of five suburbs nationwide dropped by as much as 6% in the past three months, albeit from high levels.
  • Big technolgy companies have warned governments to go slow on AI regulations.
  • China Evergrande Group has reported a narrower net loss of 33bn yuan (US$4.53bn) for the first half of the year, compared to a loss of 66.4bn yuan in the same period last year. The stock was down 87% at one stage. It has not traded since March 2021.
  • China has halved the stamp duty on stock trading to boost the struggling stock market and investor confidence. The CSI 300 index of mainland stocks rallied as much as 5.5% early Monday before paring more than half of the gains by the mid-day break.
  • France to pay farmers €200m for destroying wine surplus.
  • Fifa suspends head of Spanish football over ‘World Cup kiss’.
  • US Trade secretary Raimonda meets Chinese officials in Beijing. Stresses a ‘more stable’ relationship.

And finally….

Sadly my neighbor just told me his wife left him over a week ago after nearly 25 years of marriage. She told him she was just popping out to get a bottle of milk and never returned.

I said. ”Bob, that’s really awful, I’m so sorry to hear it. How are you coping?”

”I’m Ok.” He replied. ”I’ve been using that powdered stuff”

Clarence

XXXX