The ASX 200 rallied another 44 points to 8387 (0.5%) off its highs but still looking ok. Once again, the banks led us up, CBA hitting a record high, up 1.5%, with the Big Bank Basket up to $273.04(1.2%). MQG is up 1.0% with insurers flat, 10-year yields at 4.40%. Other financials eased, and REITs drifted slightly higher. Industrials mixed, TLS continuing higher up 0.6% and ALL down 1.5% with retail taking a break. Tech stocks saw selling in WTC and XRO, but TNE was up 5.9% again as retail eased back. Healthcare stocks resumed the uptrend, with RMD bouncing back 4.0% and FPH up 3.1%, too.  In resources, BHP and RIO rose, but FMG drifted 0.1% lower. Gold miners were better, bullion and geo-political risks helping here, NEM up 3.6% and NST rallying 3.2%, with PRU doing very well, up 9.7%. Lithium stocks slipped lower, and oil and gas stocks were pushed higher on rumours that Israel would attack Iranian nuclear facilities. Uranium stocks are rallying slightly. In corporate news, JHX fell 6.2% on disappointing numbers, and MYX dropped 29.8% as the bidder is trying to wriggle out of the deal with private equity. NUF collapsed 30.1% after downgrading guidance. CAT jumped 13.7% on a 19% increase in revenues. Gold and silver are pushing ahead again in Asian trade. On the economic front, Commonwealth Bank expects the Reserve Bank to cut interest rates earlier than expected. Asian markets saw Japan fall 0.3% with HK up 0.9% and China up 0.7%.

HIGHLIGHTS

  • Winners: ADT, CAT, PDI, PRU, EMR, PNR, OBM
  • Losers: NUF, MYX, C79, LTR, HMC, IEL, OBL, JHX, DDR
  • Positive Sectors: Banks. Gold miners. REITs. Healthcare.
  • Negative Sectors: Lithium. Tech.
  • ASX 200 Hi 8423 Lo 8350
  • Big Bank Basket: Higher at $273.04 (+1.2%)
  • All-Tech Index: Up 0.7%
  • Gold: Jumps to $5131
  • Bitcoin: Rises to US$107484
  • 10-year yield up to 4.45%.
  • AUD: Rises to 64.53c
  • Asian markets firmed, Japan down 0.3% with HK up 0.9% China up 0.7%
  • Dow futures are down 163, and Nasdaq futures are down 107.

MARKET MOVERS

  • ADT +25.3% takeover discussions with Dundee.
  • CAT +13.7% positive presentation.
  • PRU +9.7% buyback update.
  • SEK +7.0% update
  • BOC +31.6% is the copper boom back?
  • EIQ +10.4% ASX query.
  • MTM +9.3% pushes back to highs.
  • RXL +7.3% high gold recoveries at Youanmi
  • MYX -29.8% Cosette deal in danger.
  • NUF -30.1% downgrades guidance.
  • LTR -7.8% slipping back.
  • DDR -5.8% escrow arrangements.
  • OFX -12.8% broker downgrades.
  • TLG -11.7% raises $10m
  • Speculative Stock of the Day:  OCN +63.6% placement to raise $667,000.

ECONOMIC AND OTHER NEWS

  • European markets expected to open a little lower.  UK CPI in focus. Higher than forecast.
  • G7 Finance ministers meet.
  • Oil jumped following a CNN report that new US intelligence suggests Israel is preparing for a potential strike on Iranian nuclear facilities.
  • Japan’s former farm minister said he has never had to buy rice as he received it from his supporters. He resigned soon after. Now he will have to buy rice.
  • IMF urges US to curb deficit as Trump tax cut plan stirs debt fears.
  • Rubio says the US may impose sanctions on Russia if there is no progress on a peace deal.          

And finally…..

Clarence

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