ASX 200 rose another 24 points to 7851 (+0.3%) as iron stocks fell hard on Asian price falls. BHP, RIO and FMG dragging the index back from 7910 high. BHP down 2.8% and FMG crashing 4.6%. Iron ore futures in Singapore sank a further 2.3% to $US96.25 a tonne. Other resource sectors pulled lower. Lithium tried hard to rally, but PLS was unchanged and MIN off 4.6%. Gold miners mixed, RED off 1.4% and BGL down 2.5% with EVN presenting a good set of numbers and rose 6.6%. Oil and uranium not doing too much. Results dominated in industrials; CBA produced a beat and a higher dividend, up 1.3%, with the Big Bank Basket up to $227.58 (+0.7%). MQG rose 0.8%, with insurers slightly firmer, and ASX fell 3.7% as ASIC launched legal proceedings. CSL bounced 2.0%, and healthcare generally was better, with SHL up 2.0% and RHC up 1.0%. PME results delighted the bulls, up 7.2%. Elsewhere, retailers were still in favour, SUL up 2.4% and APE rose 2.1%. Gaming stocks better too, ALL up 1.4% and LNW rising 2.0%. Tech rose, the All–Tech Index up 1.7% with WTC up 2.6% and XRO up 0.5%. REITs also better, GMG up 3.1% with REA up 3.5% too. In corporate results, SVW showed the benefit of owning BLD up 6.8%, ORA rose 5.3% on better results and more M&A interest, and BVS also dId well, up 11.1% on results. Nothing locally on the economic front. RBNZ cut rates as the economy stalls, and the Japanese PM announced he would be stepping down. Asian markets lower, HK and China down 0.5%. 10Y yields fell to 3.93%.Dow and NASDAQ Futures up 0.1%. 

HIGHLIGHTS

  • Winners: BVS, IPX, NGI, PME, SVW, EVN, ORA, OPT
  • Losers: MIN, FMG, CIA, ASX, DRR, SMR, ACL
  • Positive sectors: Banks. Healthcare. REITs. Tech. Industrials.
  • Negative sectors: Iron ore.
  • ASX 200 Hi 7910  Lo 7827
  • Big Bank Basket: Continues higher to $227.58(+0.7%)
  • All-Tech Index: Up 1.9%
  • Gold: Eases to $3710.
  • Bitcoin: Steady at US$60993
  • 10-year yields weaker at 3.93%
  • AUD: Higher at 66.30c
  • Asian markets: Japan up 0.6%, HK down 0.6% and China down 0.6%
  • Dow futures up 28 NASDAQ Futures up 7

MAJOR MOVERS

  • IPX +9.4% achieves first titanium furnace production run.
  • BVS +11.1% Results.
  • PME +7.2% positive outlook.
  • ORA +5.3% results and corporate attention.
  • EVN +6.6% financial results.
  • SVW +6.8% results.
  • APX +24.3% tech bounce.
  • LRS +9.1% oversold.
  • KMD +3.9% no reason.
  • DXB +7.3% Steve will be pleased.
  • CIA -3.9% iron ore sell down
  • FMG -4.6% sell-off gathers pace.
  • ASX -3.7% sued by ASIC.
  • DRR -3.7% iron ore woes.
  • BHP -2.8% below $40.
  • MEI -9.5% falls back to earth.
  • FEX -9.6% iron ore.
  • Speculative Stock of the Day: LVH +87.5% recommended takeover at 4.5c. Solid volume.

COMPANIES

ECONOMIC AND OTHER NEWS

  • New Zealand’s central bank cut interest rates, embarking on an easing cycle much sooner than previously indicated.
  • Japanese PM announces he will step down. He will not run for a second term.
  • Leading Chinese steel producer Baowu warned that the country’s steel industry is facing a crisis more serious than the downturns of 2008 and 2015.
  • Mars strikes deal to buy Pringles maker Kellanova for more than $29bn.
  • UBS reports $1.1bn net profit in second quarter. Smashes expectations. Global wealth management unit revenue increased by 15% to $6.053bn.
  • US CPI due tonight. 0.2% increases on both the all-items reading and the core measurement.
  • UK CPI due. 2.2% Y/Y v 2.3% forecast. Back above BoE target.

And finally….

Clarence

XXX