ASX 200 up 53 points to 8647 (0.6%). A solid rally driven by bullion and banks. The Big Bank Basket rallied to $278.81 (+1.2%). CBA up another 1.3%, with ANZ doing well up 1.3%. MQG rose 0.9% and IFL up 2.7% on a broker upgrade, Insurers better, SUN was out and up 2.4% with IAG doing well, rising 2.9%. REITs rallied too, GMG up 1.1% and CHC rising 3.1%.  Industrials in demand across the board, JBH up 1.9% with WOW and COL better, TLS continuing to push ahead up 1.0% with QAN up another 2.0%. Healthcare mixed, SIG up 2.3% and CSL off 1.0%. Tech stocks rose, with the All–Tech Index up 0.3%. In resources, iron ore stocks drifted lower as iron ore fell on Chinese PMI. Gold miners off highs, but still strong, NEM up 4.3% with GMD gaining 4.6% and OBM up 5.9%. Lithium stocks falling again, PLS down 0.4% and MIN hit 5.5%. Oil and gas stocks rose with crude, uranium still under pressure again. DYL down 1.9% and PDN off 1.3%.  In corporate news, IEL fell 48.1% on a massive downgrade and nasty outlook statement, TEA ran 8.6% on a special dividend, DMP fell 2.2% after a raft of executive changes. In economic news, the RBA minutes helped sentiment, Chinese PMI dropped to 48.3. Asian markets slightly higher, Japan up 0.1%, HK up 1.1% and China up 0.5%. 10-year yields steady at 4.26%.

HIGHLIGHTS

  • Winners: DRO, TEA, CYL, KLS, PPM, OBM, TAH, JDO
  • Losers: IEL, AD8, SLX, MIN, ELD, RDX, LNW
  • Positive Sectors: Banks. Gold miners. Tech. Industrials.
  • Negative Sectors:  Iron ore. Fast food.
  • ASX 200 Hi 8480 Lo 8418
  • Big Bank Basket: Higher at $278.81(+1.2%)
  • All-Tech Index: Up 0.3%
  • Gold: Higher to $5199
  • Bitcoin: Rises to US$105,078
  • 10-year yield steady at 4.26%.
  • AUD: steady at 64.66c.
  • Asian markets: Japan up 0.1%, HK up 1.1% and China up 0.5%.
  • Dow futures are down 80, and Nasdaq futures down 70

MARKET MOVERS

  • DRO +9.4% defence play.
  • PPM +7.0% special dividend.
  • TEA +8.6% acquisition.
  • CYL +7.8% gold play.
  • SX2 +4.4% good drill results.
  • JDO +5.8% investor day.
  • MTM +14.9% high-grade antimony recovered from 98% US E waste.
  • EMV +7.3% pivotal trial sites.
  • EEG +6.3% appointment of CFO.
  • IEL -48.1% who stole the students?
  • AD8 -9.2% low volume move.
  • SLX -5.8% uranium sell-down again.
  • ELD -4.4% ex-dividend
  • MIN -5.5% teddy bears picnic!
  • FDV -24.5% resignation of CEO
  • DTR -20.7% finally a pullback.
  • FND -9.5% low volume.
  • Speculative Stock of the Day: EPM +200% unveils a 89mt rare earth resource at Gronnedal.

ECONOMIC AND OTHER NEWS

RBA minutes:

  • Rate cut of 25bps to support growth.
  • Consideration of larger cut.
  • Inflation Within Target.
  • Global Economic Concerns.
  • Domestic Consumption Weakness
  • Labor Market Stability.
  • Neutral Policy Stance.
  • Potential for Further Easing.

China’s manufacturing sector had its worst slump since September 2022, according to a private survey. The Caixin PMI index fell to 48.3 last month from 50.4 in April. Iron ore slips on news.

  • EU inflation data later today.
  • The UK envisages taking an enhanced role in NATO’s nuclear deterrence amid doubts surrounding the US commitment to the alliance.
  • Musk’s xAI seeks $113bn valuation in $300mn share sale.
  • India and Europe agree on nearly half of trade deal ‘chapters’.

And finally…..

Clarence

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