Friday 26th July – Australian Market Wrap – ASX 200 up 60 – US PCE in Focus – Resources Rally | Beeks Downunder-Because not all financial news is boring!

ASX 200 rallies 60 points to 7928 (0.8%) as iron ore rallies and China throws some money at stimulus. The ‘Three Amigos’ all spurted ahead, BHP up 2.2%, RIO jumps 2.8% and FMG more muted post quarterly only up 1.0%. Lithium stocks got a lift from EV stimulus, PLS up 3.8% and MIN up 3.5% on quarterly. Some short covering adding to gains. Gold miners crashed as BGL returned, down 21.6%. NST dropped 3.2% with PRU off 3.1%. Oil and gas a little firmer, KAR up 5.8% on research WDS up 0.3% and some buying in uranium appeared. Banks were again a little better, WBC up 0.9% and the Big Bank Basket up to $228.30 (0.4%). MQG saw a 1.5% rally as brokers hoped for a 2H rebound. Insurers did well, QBE up 2.5% and SUN up 1.2%. REITs improved, GMG bouncing 1.1% with SGP up 1.4%. Industrials firm across the board, WES up 1.0%, TCL up 0.6% and retail powering ahead still. PMV up 1.7% with JBH 1.0% ahead. Tech stocks better, WTC up 1.5% and XRO up 1.1%. The All-Tech Index up 0.3%. In corporate news, NEC is facing strikes from staff on eve of Paris Olympics. Nothing on the economic front but US PCE tonight. Asian markets little changed as China moves again to try and stimulate. Japan down 0.5%, HK up 0.3% . 10-year yields 4.31%.

HIGHLIGHTS

Winners: KAR, LTR, JDO, CRN, DYL, PLS, MAH, SGM
Losers: BGL, DRO, LOT, RED, QAL, RRL, NST
Positive sectors: Banks. Iron ore. Healthcare. Tech. Retail.
Negative sectors: Gold miners.
ASX 200 Hi 7938 Lo 7876
Big Bank Basket: Slightly higher at $228.30(+0.4%)
All-Tech Index: Up 0.3%
Gold: Steady at $3618
Bitcoin: Rallies to US$67029
10-year yields lower at 4.29%
AUD: steady to 65.53c.
Asian markets muted, Japan down 0.5%, HK up 0.3% and China unchanged.
European markets opening mixed to easier. Results in focus. Hermes good.
Dow futures up 100 NASDAQ Futures up 120 . US PCE Tonight

MAJOR MOVERS

LTR +5.5% lithium fires up.
KAR +5.8% broker upgrades
CTT +3.0% tech rally.
CRN +4.9% broker upgrades.
MIN+3.5% quarterly report.
PLS +3.8% Chinese EV stimulus.
CXO +6.6% lithium rally.
ORN +6.3% SPP closing.
RED -5.1% red indeed.
RMS -2.3% quarterly report
BGL -21.6% capital raise weighs.
DRO -6.0% selling continues.
NST -3.2% bullion weakness.
MEI -8.3% capital raising.
TTT -8.6% more profit taking.
Speculative Stock of the Day: E79 Gold Mines (E79) +20.6% High grade gold and copper intersects from Mountain Home project in NT.

COMPANIES

ECONOMIC AND OTHER HEADLINES

Australian Inflation numbers next week.

China’s benchmark government bond yield fell to a fresh record low. The yield on the 10-year sovereign note fell to 2.17% on Friday, below the 2.18% hit on July 1.

China has announced a expansion of the one-time rebate for trading in old ICE cars, or EVs registered before April 2018, New qualifying models rebate now doubled to 20,000 yuan (US$2,800). This news saw a brief pick up in Chinese EV makers.
OpenAi announces a prototype of its SearchGPT search engine on Thursday. OpenAi is backed by Microsoft.
US personal consumption expenditures report for June. On a monthly basis, headline PCE is expected to have grown by 0.1% and by 2.5% from 12 months earlier.
Indonesia moves to reduce Chinese ownership of nickel projects.
Hermes results out in Europe. Positive results. Up 5.8% YTD.