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ASX 200 slips 21 points to 8037 (-0.3%) after the jobs number put rate rises (yes, rises) back on the table. Relatively calm markets as US futures rose and chip stocks soured again in Asia. Banks eased back, CBA down 0.6% and the Big Bank Basket slipping to $228.89 (-0.4%). Other financials eased QBE down 0.4% and CGF off 1.6%. REITS sagged, SGP down 1.3%, SCG off 1.8%, and GPT falling 3.7%. Industrials were mixed, DMP crashed 8.2% as it closed stores in Japan and France. Retail were mixed, SUL up 1.0% and HVN down 0.4%. Tech eased as NASDAQ fell overnight, WTC copped a 6.3% fall, and the All–Tech Index dropped 2.5%. Resources once again in the naughty corner. FMG down 1.4% on its hydrogen move and layoffs, lithium stocks continue to be depressed, gold miners up despite a slight slip in bullion and uranium stocks whacked, PDN down 4.2% and DYL off 5.8%. Oil and gas stocks slightly better. In corporate news, ZIP rose 11.2% after its $200m placement, AX1 rose 10.2% on store closures,and EVN ran 2.8% on its quarterly. On the economic front, unemployment rose to 4.1%, but with participation rising and 50k jobs created, rate rises cannot be ruled out. In Asian markets, Japan -1.6%, China +0.2, and HK +0.5%. 10Y yields steady at 4.241%. Dow and NASDAQ Futures higher, gaining 0.1% and 0.4%, respectively. 

HIGHLIGHTS

  • Winners: ZIP, AX1, CU6, LTR, EVN. FBU, NGI
  • Losers:  DMP, C79, WTC, NEU, DYL, DRO, GQG
  • Positive sectors: Gold miners.
  • Negative sectors: Lithium. Tech. REITs.
  • ASX 200 Hi 8070 Lo 8026 SPI Expiry Boosts Volumes.
  • Big Bank Basket: Lower at $228.89 (-0.4%) 228.89
  • All-Tech Index: Down 2.5%
  • Gold: Steady at $3659
  • Bitcoin: Eases to US$64901
  • 10-year yields steady at 4.25%
  • AUD: steady at 67.37c.
  • Asian markets mixed again, Japan down 2.1, China and HK up slightly.
  • ECB Day Today. European markets set for a slightly positive start.
  • Dow futures up 48 NASDAQ Futures up 76

MAJOR MOVERS

  • ZIP +11.2% shrugs off placement.
  • AX1 +10.2% closes unprofitable stores.
  • EVN +2.8% quarterly report.
  • LTR +3.7% media write up.
  • M4M +14.3% Goldsworthy East Development update.
  • ACW +3.5% nice volume move.
  • BCB +3.8% Noosa Mining Presentation.
  • QGL +20.3% US EXIM bank exit.
  • DMP -8.2% French and Japanese store closures.
  • DRO -5.5% falls continue.
  • GQG -5.3% slight worry.
  • DYL -5.8% presentation and uranium weakness.
  • WTC -6.3% tech sell-off.
  • PMT -7.3% under pressure again.
  • CXO -9.1% reverses yesterday’s move.
  • TTT -5.7% under pressure after run.
  • ASL -7.1% high-grade intercepts.
  • Speculative Stock of the Day:  M2R +62.5% on decent volume too. High-grade copper and lead together with silver from Gascoyne project.

COMPANIES

ECONOMIC AND OTHER HEADLINES

  • Australia’s unemployment rate rose 4.1% in June (in line with expectations), with employment rising by 50k and unemployment growing by 10k, according to the ABS. The participation rate climbed to 66.9%, nearing the historical high of 67.0% from November 2023. The 50k jobs added vs forecasts of 20k along with trend data indicates a sustained tight labour market.
  • ECB – Decision Day – No change expected.
  • Chinese Plenum wraps up. Big manifesto expected to be published later today.
  • JD Vance speaks at RNC. Biden gets Covid. Finally, something positive for Democrats.
  • Warner Bros Discovery weighs possible split to boost flagging stock.
  • New anti-ageing therapy extends life of mice by 25%, study finds.
  • Olympics just around the corner and for the first time there is US$50,000 prize money in track and field.
  • European car sales rose in June after a surge in demand for electric cars in Italy as Prime Minister Giorgia Meloni’s government introduced long-expected subsidies.

And finally……

My wife left me because she couldn’t handle my OCD.

I told her to close the door five times on her way out.

Clarence

XXXXX