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ASX 200 rallies another 68 points to 7990 (+0.9%). Big week with Dow futures showing a positive start to the week. Banks and industrials once again the stars of the show, as CBA lifted another 1.3% (record high) with the Big Bank Basket up to $230.61 (+1.0%). ANZ lagging, falling 1.2%, as the bond trading scandal holds buyers back. Insurers strong again and financials in demand, MQG up 1.2% and ASX up 1.3%. REITS doing well again, GMG up 2.1% and SGP pushing 1.1% higher. Healthcare better except RMD falling 2.1% as US falls reverberate, CSL up 1.1% and PME up 2.1%. Tech stocks better too following Nasdaq higher. WTC up 2.2% and the All–Tech Index up 1.5%. Resources were flat with no real follow through, BHP, FMG and RIO relatively unchanged after early gains faded. Lithium patchy, as was uranium and rare earths. Gold miners were mixed NST up 0.9% and EVN down 0.3%. Oil and gas pushed higher on higher crude prices. Uranium stocks eased with PDN falling 2.2% and BOE slipping on news it had tried to buy Jabiluka. In corporate news, KGN raced ahead before crashing back to earth, down 0.9%. RMS provided a June quarter update, PSQ was the subject to another bid. Nothing on the economic front, some news from APRA on mortgage buffers. Asian market strong. 10-year yields steady at 4.28%.

HIGHLIGHTS

  • Winners:  SGR, OPT, CU6, NUF, NXG, DRO
  • Losers: FBU, MSB, BOE, CTT, VUL, PLS
  • Positive sectors: Banks REITs Healthcare Industrials.
  • Negative sectors: Lithium.
  • ASX 200 Hi 8000 Lo 7932
  • Big Bank Basket: Slightly higher at $230.61(+1.0%)
  • All-Tech Index: Up 1.5%
  • Gold: Paris lifts to $3653
  • Bitcoin: Rallies to US$69705 on Trump calls to the moon.
  • 10-year yields lower at 4.28%
  • AUD: steady to 65.53c.
  • Asian markets push higher ahead of big week, Japan up 2.7% and HK rising 1.9% with China off 0.4%
  • European markets opening higher. UK Chancellor to speak.
  • Dow futures up 138 NASDAQ Futures up 131. Earnings in focus.

MAJOR MOVERS

  • OPT +8.5% warming to biotechs.
  • NXG +5.1% signs of stability in uranium.
  • DRO +5.0% nice bounce. Finally.
  • JHX +2.8% US leverage.
  • IVZ +12.8% strategic investment.
  • BIO +16.0% three-year revenue target.
  • CCR -13.2% investor presentation.
  • FBU -6.0% Golden Bay shipping update.
  • VUL -4.3% quarterly report.
  • JLG -3.8% broker report.
  • KGN -0.9% rises and drops on sales update.
  • MSB -4.9% profit taking continues.
  • TLG -14.1% capital raising and quarterly.
  • ONE -7.5% quarterly activities.
  • Speculative Stock of the Day: TRP +6.6% positive announcement last week on TGA approvals.

COMPANIES

ECONOMIC AND OTHER HEADLINES

  • APRA will not relieve borrowers of the 3% interest rate buffer they must absorb before qualifying for a home loan, forcing banks to assess customers on an ability to repay borrowings at an annual rate of about 10%.
  • New UK Chancellor Rachel Reeves will be making a significant speech today
  • 100 – days to US Presidential Election. Trump says Bitcoin going to the moon. Bitcoin touched the highest level since mid-June.
  • European markets set for very positive opening.
  • Oil steadied near a six-week low as positive Chinese economic data helped ease concern over demand.
  • EU prepares two-step trade plan to tackle Trump.
  • QUAD foreign ministers meeting.
  • NatWest sues ex-GM unit for €155mn over financial crisis-era deals.
  • Venezuelan President Nicolas Maduro wins third term.
  • McDonalds expected to report second-quarter earnings before the bell on Monday. Earnings per share: $3.07 expected Revenue: $6.61bn expected.

And finally….

Clarence

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