The ASX 200 drifted 14 points lower to 9019 (0.2%) in cautious trade ahead of the latest US CPI tonight. For the week, we are up around 24 points. Not that exciting, but plenty happening beneath the surface as usual. Banks eased back today with CBA down % and the Big Bank Basket down to $289.13 (). Other financials also drifted lower, NWL down 2.2% and HUB off2.1 %. ZIP fell 1.0% and insurers flat too. REITS held firm generally as did industrials. BXB up 0.1% and SGH rising 0.8%. Some buying in tech stocks, WTC up 3.0% and XRO still struggling, up 0.2%. The All-Tech Index up 0.6%. In resources, BHP and RIO rose slightly, FMG down 1.5% and gold miners were generally easier again, NEM quarterly probably not helping, off 4.4%. Lithium had a day out following better than expected quarterly from PLS up 9.1% and LTR up 10.4%. Looks like some more short covering kicking in too. Oil and gas mixed, WDS up 1.0% and STO down 1.2%. Uranium firmed ever so slightly, PDN up 0.1% and DYL off 4%.

In corporate news, CTD released a positive update but still suspended due to past issues. WHC fell 0.4% on its quarterly and CCL gained 1.0% on ACCC approvals with NCK seeing its chair retiring. MGX cratered 26.6% following the recent seismic event on Koolan Island which has now brought forward the closure of the mine. CRN confirmed a roof fall but denied a collapse.

On the economic front, Japanese CPI rose, Trump terminated talks with Canada after an ad and China revealed its cunning plan to revitalise its economy.  

Asian markets better Japan up 1.4% China up 1.0% and HK up 0.7%. US Futures slightly better.

10-year yields rise to 4.14%.

European markets opening around 0.1% higher. US CPI in focus.

HIGHLIGHTS

  • Winners: AIS, LTR, SLX, PLS, REG, IGO, 29M
  • Losers: MGX, ARU, RAC, EOS, QOR, NVX, FML, INR
  • Positive Sectors: Lithium. Tech. REITs
  • Negative Sectors: Banks. Gold miners. Healthcare.
  • ASX 200 Hi 9054 Lo 9010. For the week up 24pts.
  • Big Bank Basket: Falls to 289.13 (+-0.5%)
  • All-Tech Index: Up 0.6%
  • Gold: steady at $6334
  • Bitcoin: rises to US$111172
  • AUD: Steady at 65.03c.
  • In Asian markets – Japan up 1.5% on political resolution perhaps, China up 0.7% and HK up 0.5%
  • 10-year yields steady at 4.14%.
  • US futures – Dow up 48 Nasdaq up 77
  • European markets set to open higher.  

MARKET MOVERS

  • AIS +10.5% good volume too.
  • LTR +10.4% lithium push.
  • 29M +7.3% broker upgrade.
  • PLS +9.1% good quarterly numbers.
  • IGO +8.0% MIN +6.5% lithium back.
  • LDX +6.1% AGM presentation.
  • CXO +14.3% becoming a substantial shareholder.
  • MTO +14.0% AGM notice.
  • ERD +9.6% capital change notice.
  • MGX -26.6% closes Koolan Island.
  • ARU -9.8% profit taking.
  • EOS -7.4% profit taking.
  • DRO -3.6% profit taking.
  • EUR -3.8% Appendix 3Y- Tony Sage.
  • 3DA -7.3% investor presentation.
  • AFG -3.4% thin liquidity.
  • INR -5.0% profit taking.
  • Speculative Stock of the Day:  VHL +23.1% expands US partnership with Evolent.

ECONOMIC AND OTHER NEWS

  • US CPI tonight – expected to rise slightly.
  • President Donald Trump said he had terminated all U.S. trade negotiations with Canada.
  • Trump said he was doing so because of an allegedly “fake” advertisement that Canada was airing that features former President Ronald Reagan speaking negatively about tariffs. I watched the actual video from Reagan. Not sure Trump did.
  • Macquarie Group has told clients that 242 funds will be closed to new investment on its superannuation platform as it seeks to simplify its menu of options and reduce risk following the failure of the Shield Master Fund.
  • China’s Five-Year Cunning plan revealed. It vowed to strengthen its self-reliance on technology and boost domestic demand as it braces for what its leaders called “raging storms”.
  • Iron ore futures prices dipped on Friday, snapping a three-session winning streak.
  • Japan’s core inflation picked up for the first time since May. Headline and core inflation both hit 2.9%, keeping inflation above the BOJ’s 2% target.
  • Overseas renminbi lending surges as China steps up campaign to de-dollarise.
  • Labour suffers seismic by-election defeat to Plaid Cymru in Caerphilly.
  • Porsche hits reverse on EV push as new CEO shifts back to petrol.
  • Putin hits back at US oil sanctions vows ‘serious’ and ‘overwhelming’ response. That doesn’t sound good!

And finally….

My friend Phillip had his lip removed last week. Now we just call him Phil.

Clarence

xxxxx