ASX 200 fell 20 points in quiet trade to 8415 (0.1%). Most sectors showing losses as nerves crept back in on Trump and Chinese negotiations. Banks slipped with WBC off 1.2% and the Big Bank Basket down to $275.32 (-0.1%). MQG fell 1.0% with insurers better, QBE up 1.3% and MPL rising 2.1%. REITs slid, GMD down 0.9% and VCX off 0.4%. Industrials were mostly flat, WOW and COL better, WES up 0.5% and SGH doing well, up 0.7% with BXB rallying 1.0%. TLS continued to push higher, tech was mixed as WTC fell 2.3% and XRO rose 1.5% with the All–Tech Index down 0.5%.  Healthcare under a little pressure, SIG off 3.2% following the sell-down last week.

In resources, iron ore down in Singapore, BHP off 1.2% and FMG sliding 2.5%. Lithium stocks under pressure following the UBS downgrade last week, MIN off 11.8% and PLS falling 8.1%. Gold miners were better as bullion pushed higher on steel tariff issues, EVN up 3.1% and NEM up 1.2%. Oil and gas stocks eased slightly and uranium stocks fell. In corporate news, SOL announced a merger with BKW to create a new $15bn top 50 stock. Both stocks rallied hard on the news, a $500m zero discount capital raising also helped sentiment. BSL jumped 4.4% on US tariff moves, APE extended the buyback, JHX rose 1.4% on securing a new debt facility. Nothing on the economic front, China and US ratchet up war of words. Asian markets fell, Japan down 1.3%, HK off 1.9% and China down 0.5%. 10-year yields fall to 4.25%.

HIGHLIGHTS

  • Winners: BKW, SOL, GDG, BSL, OBM, CYL, PRN
  • Losers: CU6, MIN, LTR, BOT, PLS, A4N, IPX, MSB
  • Positive Sectors: Supermarkets. Gold miners.
  • Negative Sectors:  Iron ore. Tech. Oil and gas. Lithium.
  • ASX 200 Hi 8436 Lo 8401 Narrow range.
  • Big Bank Basket: Lower at $275.32 (-0.1%)
  • All-Tech Index: Down 0.5%
  • Gold: Higher to $5140
  • Bitcoin: Eases to US$104,620
  • 10-year yield falls to 4.26%.
  • AUD: rises to 64.60c.
  • Asian markets: Japan down 1.3%, HK off 1.9% and China down 0.5%.
  • Dow futures are down 173, and Nasdaq futures down 146.

MARKET MOVERS

  • BKW +27.6% SOL +16.4% merger draws buyers.
  • OBM +3.9% gold miners kick.
  • GDG +4.5% rally continues.
  • PRN +5.5% contract win.
  • EVN +3.0% copper and gold exposure.
  • DTR +49.5% see below.
  • ELS +% Drones in focus.
  • TWE -14.3% ceasing to be a substantial holder.
  • DUG +11.6% first nomad lease secured.
  • MIN -11.8% PLS -8.1% LTR -8.3% lithium sell-off.
  • SLX -4.2% DYL -3.7% uranium falls back to earth.
  • CXO -11.1% lithium on the nose.
  • LOT -10.3% uranium under pressure.
  • EIQ -6.1% delays hurt.
  • CRN -4.6% liquidity management update.
  • Speculative Stock of the Day: CRI +76.9% No new news.

ECONOMIC AND OTHER NEWS

  • Iron ore fell to its lowest level since early May.
  • Morgan Stanley has upgraded its GDP forecast for China, expecting a “shallower growth slowdown” it now sees GDP stabilising year-on-year at 4%, up from the 3.7% previously forecast, analysts said in a note. It expects GDP in 2025 to hit 4.5%, up from the 4.2% previously forecast, and 4.2% in 2026, up from 4%.
  • China accused the US of violating their recent trade deal and vowed to take measures to defend its interests.
  • Conservative Nawrocki wins Polish election.
  • Treasury secretary Bessent insists US will ‘never default’ on its debt.
  • Britain to build up to 12 attack submarines as it moves to war-ready footing.
  • Anglo American Platinum spin-off, Valterra, debuts in London today.

And finally…..

In his spare time my granddad races pigeons ,
I don’t know why,he never beats them.

Clarence

XXXX