The ASX 200 jumped 139 points to close the week at 8732 (+1.6%) on a very firm note as hopes built that there will be some resolution, or at least an extension of the ceasefire in the Middle East. There seemed to be a lot of short covering around today after the 125-point fall yesterday. We reversed that today, with the banking sector bouncing back hard, with CBA up 2.2%, NAB up 0.6%, and the Big Bank Basket up to $273.55 (+1.6%).

Financials across the board bounced, with MQG up 1.1%, and even ASX rallying slightly, but it was resources that were really carrying the day today, as copper stocks advanced with BHP up 2.9%, RIO up 1.2%, and FMG also doing well, up 2.4%.

The gold miners had a good day yesterday after falling around 7%, with NST up 3.4% and EVN up 4.2%. Copper stocks and lithium pushed higher, with S32 also up 3.0%, although we saw some obvious selling in the oil and gas plays, with WDS unchanged and STO down 0.5%. Uranium stocks firmed slightly in this heady environment.

Tech stocks saw some modest buying, with NXT up 1.7%, CAR doing very well, and TNE up 2.0%. Industrials and retail rose slightly. We also saw good buying with JBH up 1.2%, BXB up 0.1%, and QAN doing well on the back of lower crude prices.

In corporate news today, JDO had a great day after expanding its securitisation deal. IEL was trashed 16.2% after Macquarie slashed its target price, and THL soared 26.1% after a non-binding indicative offer from BGH Capital.

Nothing on the economic front today. All eyes are on whether Donald Trump signs off on the latest proposal.

Asian markets eased. Japan up 2.6%, HK up 0.8% and China down 0.6%.

US futures up slightly, Dow up 34 and Nasdaq up 6. European markets set to open around 0.2% higher.

HIGHLIGHTS

  • Winners: ELS, 4DX, EOS, GLN, JDO, SRV, VUL
  • Losers: IEL, CIA, DXS, GNP, WGN, EQR
  • Positive Sectors: Banks. Copper. Gold. Tech. Iron ore. Retail.
  • Negative Sectors: Oil and gas.
  • ASX 200 Hi 8732 Lo 8651 ASX 200 up 75 points (0.9%) this week.
  • Big Bank Basket: Higher at $273.55 (+1.6%)
  • All-Tech Index: Up 2.3%
  • Gold: Slips to $6306
  • Bitcoin: Rises to US$73605
  • 10-year yields: Fall to 4.83%
  • AUD: Better at 71.64c.

MARKET MOVERS

  • ELS +20.2% follow on US order.
  • 4DX +18.9% CTVQ enters US Outpatient market.
  • EOS +16.2% short covering.
  • JDO +% positive securitisation deal.
  • VUL +9.6% AGM presentation.
  • DRO +6.3% AGM presentation.
  • THL +26.1% bid from BGH.
  • JGH +14.7% AGM
  • MGH +2.4% buyback update.
  • IEL -16.2% Macquarie slashes PT.
  • DXS -5.4% court case.
  • KAR -2.3% Bauna FPSO operator transition.
  • EQR -4.2% cleansing notice.
  • ADO -13.6% profit taking.
  • Yesterday’s Hero: ACR -7.7%  
  • Speculative Stock of the Day: CTT +30.6% Trading halt.

ECONOMIC AND OTHER NEWS

  • An uncrewed Blue Origin New Glenn rocket exploded on the launchpad during a test on Thursday. It was referred to as an ‘anomaly’!
  • SpaceX is targeting a valuation of at least US$1.8 trillion in its initial public offering,
  • AISC confirms it is investigating CTD directors.
  • Australian retailers are facing a “pincer movement” of rising input costs and weakening demand, with new analysis from Deloitte Access Economics. It said retailers are being forced to navigate rising costs and weakening demand at the same time, creating difficult decisions.
  • South Korea and Taiwan markets heading into orbit again.
  • Oil set for worst month since 2020 as US-Iran truce set to extend.
  • Russia overspends on Putin’s war in Ukraine by $28bn.
  • Anthropic finalises $65bn funding deal to surpass OpenAI’s valuation.
  • Drone start-up Stark set for €2.5bn valuation in new fundraising.
  • Netanyahu orders Israeli forces to take control of 70% of Gaza.

And finally….

Clarence

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