ASX 200 kicked 87 points higher to 7298 (1.2%). A killer combo of strong US markets and a much better-than-expected local CPI at 4.9% kept the market pumping. Gains across the board with few exceptions. Lithium was one sector that failed to ignite, which is ironic given lithium’s properties. PLS started well but slid 2.1%, LTR down 0.7%, and MIN mustering a small 1.8% gain. BHP and RIO leading resources, with gains of 1.5% and 2.1%, respectively. Gold miners in demand as Gold Conference kicks off, NCM up 1.6% and NST gaining 1.9%. Oil and gas better as crude rose and gas prices volatile on strike news, WDS up 0.8% and STO up 1.3%. Banks were the usual source of strength, the Big Bank Basket up to $177.45 (+0.95%). NAB the best of the bunch, up 1.6%. MQG kicked 1.4%, and insurers better too, SUN up 2.4%. REITs firm as yields fell, GMG up 1.2% and SGP up 0.5%. Staples better, WOW up 2.0% and COL up 0.9%, with TCL doing better on rates, BXB delivered a pallet of money rising 7.1%, tech only slightly higher. XRO up 1.7%, and WTC up 0.9%. The All–Tech Index up 1.6%. In corporate news, CHN dropped 25.2% on its scoping study assumptions, FLT failed to take off on results a little worse than the market had hoped. Kerry Stokes turned trader, taking the top off some BLD down 8.0%,  BET slipped towards oblivion down another 15.4% on results, CCX  fell 4.8% not so chic after all, as sales fell hard. In economic news, monthly CPI numbers fell to 4.9%, below forecasts of 5.2%. Asian markets firmed slightly, Japan up 0.6%, China up 0.1%, and HK up 0.6%. Dow futures up 8 points. Nasdaq futures up 4 points. 

HIGHLIGHTS

  • Winners: SYA, TYR, HLS, BXB, NVX, MYR, SIQ.
  • Losers: CHN, BLD, ABC, A4N, SLX, FLT, LRS.
  • Positive sectors: Banks, Healthcare. REITs. Iron ore. Gold miners. Oil and gas.
  • Negative sectors: Lithium.
  • High 7318 Low 7220.
  • Big Bank Basket: Rises to $177.45(+0.95%)
  • All-Tech index: Up 1.6%
  • Gold:  Barely changed at $2989.
  • Bitcoin: Bounces on ETF news to US27453
  • Aussie Dollar:  Higher at 64.77c.
  • 10-Year Yield: Slips to 4.08%.
  • Asian markets firms, Japan up 0.6%, China up 0.1% and HK up 0.6%.
  • US Futures: Dow up 16 Nasdaq up 11
  • European markets opening around 0.3% higher.

MAJOR MOVERS

  • TYR +8.5% kicks on broker upgrades.
  • VUL +3.9% no real reason.
  • BXB +7.1% good result.
  • HLS +7.8% results and no dividend.
  • SIQ +7.0% sector finding some friends.
  • MTO +23.6% low volumes.
  • MYR +5.6% Solly Lew buys another 24.6m shares.
  • EML +9.7% broker upgrades.
  • DGL +8.9% broker upgrades.
  • CHN -25.2% the poisoned one.
  • BLD -8.0% Kerry sells down 1%.
  • ABC -6.0% broker downgrades.
  • FLT -2.8% results disappoint.
  • KLS -2.0% shortage of drivers hurts.
  • AZS -2.8% SPP letter
  • BET -15.4% results.
  • WC8 -7.6% one life gone.
  • LRS -3.0% lithium weakness.
  • SLX -3.4% slipping again.
  • Speculative Stock of the Day: Rocket DNA (RKT) +20.0% receives CASA approvals for autonomous drone in a box solution.

HEADLINES

  • Inflation cools to 4.9% in July, down from 5.4% in June, lower than expectations of 5.2%
  • Building permits fell by 8.1%
  • BYD (Build Your Dream) remains confident of selling 3m clean cars this year.
  • Nio lost US$835.1m in the second quarter, more than twice its year-ago loss as deliveries of its upscale EVs slipped
  • Country Garden is planning to issue HK$270m ($34.4m) of new shares to pay off loans as it faces a cash crunch.
  • Huawei surprised investors by debuting a US$960 smartphone, buoying hopes for advances in domestic chip and mobile technology despite US sanctions. Online screenshots purported to show the Mate 60 Pro performing at 5G-capable speeds.
  • EU imports record volumes of liquefied natural gas from Russia.
  • Putin to visit China in his first overseas visit since Ukraine invasion.
  • Amazon threatened with legal action over sales of ‘unapproved’ drugs.
  • US targets 10 drugs for pricing negotiations in crackdown on costs.
  • European markets expected to open around 0.3% higher.

And finally last market wrap for a while….off on leave…back at the end of September.

Clarence

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