ASX 200 fell another 56 points to 8480 (0.7%) despite the RBA cutting rates as expected. Banks falling again today, WBC off % after broker downgrades. CBA off 1.4% and NAB also hit hard with the Big Bank Basket at $265.03  (-1.8%). Financials were mixed, CGF fell 9.0% on disappointing numbers, HUB rose 3.7% on better-than-expected results. HMC had a cracker on its numbers up 9.9% with MQG falling 0.9%. Insurers found a few friends. REITs slipped as bond yields remained at 4.45%. GMG rose 2.1%. Industrials eased back, retailers suffering a little with JBH down 3.5% and WES off 1.4%. Supermarkets slipped slightly, travel stocks fell, and healthcare falling with SIG down 5.5%. CSL bucked the trend and gained 2.1%. Resources were mixed, BHP results didn’t do much either way, RIO off 0.2% and lithium stocks fell hard, MIN off 6.1% and PLS falling 5.4%. Gold miners eased but relatively stable, NEM up 0.5% and GOR up 0.4% with NST down 1.9%. Energy stocks on the nose, WDS falling 1.5% on concerns on dividends, WHC fell 5.0% and uranium stocks off again, PDN down 4.0%. In corporate news, SEK stabilised after lifting its dividend, DRR fell 2.6% after net profit slipped, AZJ rose 0.6% on plans to consider breaking up the business. On the economic front, RBA was the go and no surprise. No reaction either! Asian markets improved, Japan up 0.7% and HK ripping higher again, up 2% and China up 0.4%. 10-year yields at 4.50%.

HIGHLIGHTS

  • Winners: HMC, SM1, AD8, JDO, IPX, SSM
  • Losers: HGH, CGF, BAP, PNR, MIN, MAH, SIG
  • Positive Sectors: None.
  • Negative sectors: Banks. Lithium. Oil and uranium. Coal.
  • ASX 200 Hi 8545 Lo 8474
  • Big Bank Basket: Eases to $265.03 (-1.8%)
  • All-Tech Index: Down 0.3%
  • Gold: Rises to AUD$4583
  • Bitcoin: Back to US$96036
  • 10-year yield rises to 4.50% post RBA.
  • AUD: Falls to 63.51c.
  • Asian markets, Japan up 0.7% and HK ripping higher again, up 2% and China up 0.4%.
  • Dow futures up 38 Nasdaq up 64.

MARKET MOVERS

  • HMC +9.9% good results.
  • JDO +8.5% margin expansion.
  • AD8 +8.6% brokers fall back in love.
  • IPX +6.4% DoD deal still driving it.
  • MND +5.3% results.
  • HUB +3.7% results cheer.
  • JLG +4.1% US exposure?
  • SGR +14.8% Oaktree proposal details.
  • SNT +21.1% positive drug results.
  • FND +10.9% kicks yet again.
  • BOC +8.5% copper boom.
  • LRV +6.1% antimony.
  • HGH -13.9% increase in impairment expenses.
  • CGF -9.0% results underwhelm.
  • BAP -7.7% resignation of CFO.
  • PLS -5.4% shorters winning again.
  • FBR -9.5% fall out form JV finishing.
  • MLG -9.4% $75m haulage contract with WGX.
  • RMC -12.1% trading update.
  • SRG -2.1% half-yearly results.
  • Speculative Stock of the Day:  DBO +30.0% – new high grade near mine copper project.

ECONOMIC AND OTHER NEWS

  • RBA cuts rates by 25bps. First time since 2020 and the last meeting under the old system. All the banks follow suit. The Board acknowledges that progress has been made but is cautious about the outlook.
  • Schroders expects two more rate cuts in 2025.
  • Oil steadied after an advance as OPEC+ delegates said the group was considering delaying restoring output, and Ukrainian drones attacked a crude-pumping station in Russia.
  • Musk set to launch Grok 3.
  • The Hang Seng China Enterprises Index rose as much as 2%, with technology stocks including Alibaba Group Holding Ltd. and Xiaomi Corp. contributing the most to the advance. The gauge has now gained more than 23% since a low in January.
  • Xi has promised to abolish unreasonable fines against private firms and urged entrepreneurs to maintain their competitive spirit.
  • Majority of Americans believe foreign aid ‘wasted on corruption’, survey finds.
  • Tesla braces for delay to China licence as Trump trade tensions mount.
  • President Zelenskyy called for the creation of a European army to boost the continent’s defences.

And finally….

Clarence

XXX