ASX 200 rose 13 points to 7827 (+0.2%) in quiet cautious trade ahead of US PPI tonight. Results are once again the focal point. Solid numbers from TPW and good guidance helping the retail sector again, with JBH up 4.0% on broker upgrades, PMV rose 1.2% and HVN pushing 1.9% ahead. Banks, as always were the beating heart of the market, with CBA up 1.5% ahead of results tomorrow. WBC and ANZ better on a broker upgrade, and CGF doing well on results today, up 6.5%. REITs mixed with GMG rebounding 0.9% and SGP off 0.7%. Elsewhere tech was mixed, WTC off 0.7% and REA up 1.0% on broker research, the All–Tech Index unchanged. In healthcare, CSL was dumped 4.6% post results as the outlook was sub-par, and Vifor seems to be still facing headwinds. Iron ore miners were slightly better, BHP up 0.3% and RIO rallying 0.5%, lithium again under severe pressure as PLS dropped 4.4% and MIN down 2.3%. LTR down 5.8%. Gold miners were better, bullion heading higher the driver, NEM up 1.5% and NST up 1.7%, with GMD jumping 8.3% following a large block trade. In corporate news, ORA revealed it had been approached with a NBIO at 255c by Lone Star. JHX is battling weak demand in ANZ together with rising wages and freight charges. On the economic front, wage growth came in a little lower than forecast, helping sentiment. In Asia, Japan has now made back all its losses from the extreme volatility last week. Japan up 2.8%, HK up flat and China -0.1%. 10Y yields slipped to 4%. Dow and NASDAQ Futures up 0.2% and 0.3%, respectively. 

HIGHLIGHTS

  • Winners:  TPW, ORA, PNR, SGM, GMD, DRO, CGF, RMS, DEG
  • Losers:  SEK, LTR, NWL, NAN, AD8, RUL, CSL
  • Positive sectors: Banks. Retail. Gold miners.
  • Negative sectors: Lithium. Healthcare.
  • ASX 200 Hi 7835 Lo 7802
  • Big Bank Basket: Continues higher to $225.92(+1.3%)
  • All-Tech Index: Unchanged.
  • Gold: Rises to $3737 as storm clouds gather.
  • Bitcoin: Steady at US$59244
  • 10-year yields weaker at 4.00%
  • AUD: Higher at 65.88c
  • Asian markets: Japan up 3.5%, HK up 0.2% and China flat
  • Dow futures up 101  NASDAQ Futures up 88

MAJOR MOVERS

  • TPW +23.3% beats expectations and strong start to year.
  • ORA +19.2% NBIO takeover approach at 255c.
  • PNR +12.9% gold rally.
  • GMD +8.3% large line put away at 214c.
  • DRO +8.0% rally resumes.
  • JBH +4.0% brokers warm.
  • GQG +2.3% heading back up.
  • SXG +12.6% gold and merger helps.
  • AGE +5.4% significant new uranium discovery.
  • SEK -6.6% results underwhelm.
  • LTR -5.8% lithium depressed.
  • RUL -4.7% buyback update.
  • SWM -8.8% 7.30 Report.
  • LRS -12.0% lithium meltdown.
  • CSL -4.6% guidance disappoints.
  • NWL -5.6% results underwhelm.
  • FCL -5.8% conference call details.
  • Speculative Stock of the Day: LTP +29.0% secures a global CoDevelopement agreement with Aptar Pharma.

ECONOMIC AND OTHER NEWS

  • The Wage Price Index (WPI) rose 0.8%in June quarter 2024 and 4.1% for the year.
  • Japan’s wholesale inflation accelerated in July, with the pace of year-on-year growth the fastest in 11 months. The corporate goods price index (CGPI), which measures the price companies charge each other for goods and services, rose 3% in July from a year earlier.
  • New Zealand immigration slowed to its weakest in 16 months as record numbers of citizens head overseas for job opportunities and better pay. 38% of departing citizens were aged between 18 and 30, the statistics agency said. About half were destined for Australia, it added.
  • Trump lashes out at ‘inside’ enemies in interview with Musk.
  • US PPI expected to show a monthly gain of 0.2% in July.
  • The CPI that’s expected out Wednesday is anticipated to show an increase of 0.2% last month, up from a 0.1% decline in the prior month.

And finally….

Someone just called my phone, sneezed, and then just hung up.

I am getting sick and tired of all these cold calls.

Clarence

XXX