The ASX 200 staged a remarkable comeback (again) to finish up 4 points at 8,918 after falling nearly 100 points in early trade. Banks were under pressure from the off on broker downgrades but fought back with ANZ up 0.9% and the Big Bank Basket flat at $270.33(). The RBA held rates unchanged for a change, although warned further rises could not be ruled out as inflation remained the focus.

Financials were generally better, MQG up 0.7% and ASX gaining 1.0%, with ZIP up 1.8%. REITs drifted lower, SCG down 0.8% and SGP off 2.5%. Industrials were weaker, WES fell 1.1% with ALL off 1.6%, and tech continued to stumble around in the dark. WTC fell 4.2% and XRO down 1.7%, with the All-Tech Index down 0.3%. Healthcare was mixed, CSL up 0.7%, with RMD slipping 1.3% and SIG continuing to bounce as it has walked away from Boots.

In resources, BHP was firm but uninspiring, FMG fell slightly, and gold miners were better again, with NST up 2.5% and EVN gaining 1.2%. Not much conviction behind the move, with rare earths falling, lithium stocks depressed, and uranium stocks mostly flat. Oil and gas stocks firmed, WDS up 2.0% and STO up 0.8%, with KAR tumbling 11.6% on a production downgrade.

In corporate news, ALX unchanged on another rejection of the IFM bid. SXE roared 20% despite a placement at 400c to turbocharge growth opportunities.

On the economic front, the RBA left rates unchanged. Warned again of inflation risks.

Asian markets – China down 0.4% HK down 1.6% – Korea up 2.1%, Japan up 0.3%.

US Futures – Dow Jones up 19 Nasdaq down 48.

HIGHLIGHTS

  • Winners: SXE, SRL, A4N, SKS, WBT, PDI
  • Losers: IPX, KAR, LTR, CXO, AAI, BRE
  • Positive Sectors: Banks. Financials. Gold miners. Oil and gas.
  • Negative Sectors: Consumer. Lithium. Tech.
  • ASX 200 Hi 8918 Lo 8834
  • Big Bank Basket: Higher at $270.33 ()
  • All-Tech Index: Down 0.3%
  • Gold: Steady at $6130
  • Bitcoin: Rises to US$66077
  • 10-year yields: Falls to 4.82%
  • AUD: Higher at 70.53c.

MARKET MOVERS

  • SXE +19.9% placement at 400c
  • A4N +12.5% product marketing update.
  • SRL +14.1% kicks higher again.
  • SKS +10.2% data centre exposure.
  • WBT +8.5% chip play.
  • RPL +7.4% fund performance.
  • DTR +15.4% court ruling.
  • SKC +10.0% issue of restricted share rights.
  • NMG +9.5% change in substantial holding.
  • KAR -11.6% production downgrade.
  • LTR -8.5% CXO -8.3% lithium under pressure.
  • AAI -7.5% aluminium run over with peace.
  • ANG -11.8% trading update and guidance
  • Speculative Stock of the Day: DXN +35.7% up again.

ECONOMIC AND OTHER NEWS

  • RBA keeps rates on hold. Still concerned about inflation.
  • Equifax says demand for mortgages in May declined by 6.6 per cent year-on-year as multiple interest rate rises, economic uncertainty and the fallout from Labor’s proposed crackdown on property investors.
  • Australia’s consumer economy is being driven by older households, with Australians aged 65 and over continuing to spend more than any other age group.
  • NAB’s latest Consumer Spend Trend showed a 1.1 per cent lift in spending in May, reversing April’s decline and pointing to a broad-based rebound in activity.
  • Australian consumer confidence was broadly unchanged last week, slipping 0.1 point to 70.7, according to the latest ANZ-Roy Morgan survey
  • BoJ hikes to 1%. Highest since 1995!
  • China’s economy stalls as investment and construction falls. Retail sales declined for the first time since December 2022, dropping 0.6% from a year earlier.
  • China’s urban fixed-asset investment contracted 4.1% as of end-May, dragged by real estate and manufacturing.
  • The Chinese national unemployment rate fell to 5.1% in May, compared with 5.2% in April.
  • South Korean defence stocks surge on prospects for post-Iran-war sales boosts
  • OpenAI spending hit $34bn last year ahead of planned IPO.
  • Andy Burnham plans to give Starmer ‘space’ to resign after by-election, say allies.
  • Trump administration considers $300bn fund for Iran if deal is upheld.
  • G7 summit continues in another stunning location.
  • One trader lost US1m on the Cabo Verde draw at the World Cup. ‘Betoor619’ had a pretty bad day. If Spain had won, he would have made $85k on a $1m bet!

And finally….

Clarence

XXX