Another solid day with the ASX 200 up 27 points to 8178 (0.3%). NAB results helped but the news of Bessent heading for a Swiss showdown with Chinese counterparties on trade, popped US futures higher (fading a little) and commodity stocks were back on. BHP up 0.9% with RIO up 0.6%, Gold miners were solid on bullion’s rise, SPR up 0.9% and VAU doing better up 3.3%. NST fell 2.6% though with WGX up 2.9%. Lithium stocks better, LTR up 7.8% on WA loans, PLS rallied 4.8% and MIN up 2.6%. LYC slipped as US/China relations improved. Oil and gas stocks also bounced, WDS up 1.7% and STO up 2.0%. Uranium stocks were once again in demand as shorts continue to cover, BOE updated the market and ran hard, up 12.4%. PDN up 4.4%. Banks stalled with the Big Bank Basket up to $263.60 (). NAB the standout and CBA the problem child. Other financials doing ok. MQG rose 0.9% despite news from ASIC on serious breaches. ASX up 2.5% and PNI up 4.3%. ZIP presented at the Macquarie conference and rose 13.0%. Industrials were mixed, CSL fell 3.0% with TLX down too but RMD up 0.9%. REITs were positive. Tech slipped, XRO down 0.3% and WTC off 0.4%. The index slipping 0.2%. Retail recovered from early JBH losses, PMV up 2.6% and TPW on an update rose 8.0%. In corporate news, no real bad news from Macquarie Conference. NXL slammed 16.0% on an uncertain update, KLS ran hard, up 18.3%, on a positive briefing. On the economic front, all eyes on the Fed and China stimulated again with more rate cuts. Asian markets slightly positive. 10-year yields steady at 4.28%.

HIGHLIGHTS

  • Winners: KLS. ZIP, BOE, SLX, PNV, NXG, TPW, LTR
  • Losers: NXL, LYC, TLX, IMD, CSL, BAP, NST
  • Positive Sectors: Gold. Oil and gas. Uranium. Iron ore. Financials ex banks.
  • Negative Sectors: Tech.
  • ASX 200 Hi 8191 Lo 8152
  • Big Bank Basket: Lower at $263.60
  • All-Tech Index: Unchanged.
  • Gold: Rises to $5222
  • Bitcoin: Rises to US$96302
  • 10-year yield steady at 4.28%.
  • AUD: Rises to 64.82c
  • Asian markets: Japan unchanged. China up 0.4% HK up 0.6%
  • Dow futures up 167 Nadaq up 85 – Fading….

MARKET MOVERS

  • KLS +18.3% market update.
  • ZIP +13.0% Macquarie presentation.
  • BOE +12.4% NXG +8.0% SLX +10.4% uranium gains again.
  • MFG +7.4% FUM.
  • LTR +7.8% WA loan package.
  • TPW +8.0% Macquarie presentation update.
  • CSC +4.7% copper run.
  • FFM +10.0% drilling results.
  • DLI +10.5% presentation at RIU.
  • GG8 +13.1% gets the monkey off its back.
  • LOT +11.4% Macquarie presentation.
  • ATH -18.2% Phase 2 data featured at MSA Congress.
  • PTM -6.4% broker downgrades.
  • NXL -16.0% trading update.
  • LYC -4.1% Chinese and Americans to talk.
  • Speculative Stock of the Day: YAR +60% not huge volume – acquisition of coal project in Bowen Basin.

ECONOMIC AND OTHER NEWS

  • It’s all about the Fed tonight. European markets opening little changed.
  • Novo Nordisk trims guidance.
  • 1 in 10 Australians experienced card fraud in 2023-24. Card fraud increased from 8.7% in 2022-23 to 9.9% in 2023-24.
  • China reduced its policy rate and lowered the amount of cash lenders must keep in reserve. China will cut the seven-day reverse repurchase rates by 10 basis points to 1.4% from 1.5%
  • The central bank will also lower the reserve requirement ratio, which determines the amount of cash banks must hold in reserves, by 50 basis points.
  • Bitcoin climbed above $US97,500 on Wednesday as investors bet trade talks between the US and China could ease tariff-driven pressure.
  • India says it carried out military strikes against Pakistan as tensions spiral after Kashmir killings.
  • Mark Carney tells Donald Trump Canada is ‘not for sale’.
  • Pegasus spyware creator ordered to pay WhatsApp $168mn for 2019 hack.
  • Novo Nordisk says that 30% of weight loss drugs sold in the US are knock off from compounding pharmacists.

And finally….

Clarence

XXX