The ASX 200 rallied another 49 points to 8966 as optimism continues on Fed and war outcomes. After a slow start, and despite iron ore falling, BHP managed a 0.6% rise as passive funds continue to flow into the Big Australian. RIO and FMG drifted lower. Gold miners continued their recovery despite bullion slipping a little, NST up 2.6% and EVN up 2.9%, with RRL doing very well. Lithium stocks also continued recovering, with LTR up 3.9% and PLS rallying 2.8%, while rare earth stocks were mildly positive. Oil and gas stocks fell as oil continued to be barrelled over, with WDS down 3.6% and STO off 1.2%. KAR dropped 13.4% on a production downgrade and oil price woes.

Banks firmed, with CBA the standout, up 1.1%, and the Big Bank Basket rising to $271.99 (+0.6%). Other financials also did well, with insurers up on premium hike talks. MQG rose 1.2%, hitting an all-time high. REITs were also positive, led by GMG rallying 1.4% and SGP up 0.9%. Industrials were mixed, although improving risk sentiment helped. SGH rose 1.2% and ALL gained 3.1%, while healthcare was also better. CSL edged higher and RMD rose 0.6%. Tech stocks bounced hard, with WTC up 4.1% and XRO rallying 3.5%, taking the All-Tech Index up 1.8%.

In corporate news, A1N rose 31.0% on a settlement with Kyle Sandilands. FLT took off , up 5.3% on a lifting of travel advisories despite earnings issues. SGM surged 1.8% following an earnings update. SYL rose 8.2% after agreeing to acquire 100% of Queensland-based Shamrock Civil in a $51 million upfront deal. On the economic front, there was nothing locally.

Asian markets – China up 0.2% HK down 0.5% Japan up 0.7% Korea up 1%

US Futures – Dow Jones up 21 Nasdaq up 201.

HIGHLIGHTS

  • Winners: DTR, WC8, TCG, EQR, WEB, SDR, A1M, RSG, PNR
  • Losers: KAR, ELV, EUR, ELS, SXE, YAL
  • Positive Sectors: Banks. Tech. Gold Miners. Lithium.
  • Negative Sectors: Oil and gas. Supermarkets. Utilities.
  • ASX 200 Hi 8977 Lo 8888
  • Big Bank Basket: Higher at $271.99 (+0.6%)
  • All-Tech Index: Up 1.8%
  • Gold: Steady at $6130
  • Bitcoin: Falls to US$65769
  • 10-year yields: Falls to 4.76%
  • AUD: Steady at 70.59c.

MARKET MOVERS

  • DTR +23.3% Music Valley news.
  • WC8 +16.8% broker upgrades.
  • TCG +16.3% Investor presentation.
  • EQR +12.5% advances Barruecopardo ore access
  • PNR +8.2% playing catch-up.
  • RSG +8.6% Change of director’s interest.
  • LOT +13.8% bouncing strongly.
  • AGE +28.1% Trading halt.
  • KAR -13.4% production issues.
  • CNI -3.5% nothing significant.
  • SXE -3.9% profit taking.
  • WDS -3.6% oil price drop
  • BOC -35.6% Update mining act amendment.
  • NVX -25.0% insto placement and SPP
  • Yesterday’s Hero: DXN +2.6%
  • Speculative Stock of the Day: NOR +100.0% OpenSpan paid pilot trial agreement with UK telco.

ECONOMIC AND OTHER NEWS

  • Bain Capital exits race for OML.
  • APRA has urged major banks not to forget the lessons of the damaging Hayne royal commission after Westpac and ANZ CEOs raised the possibility of banks revisiting financial advice and wealth management.
  • The Federal government withdrew its do not travel advice for the Middle East.
  • Kevin Warsh, come on down! Fed meeting in focus.
  • Iron ore prices sank below $100 a ton. Data this week showed that steel production in China shrank again in May.
  • APRA is writing to banks, insurers and superannuation funds to set out guidelines on how they must prepare for geopolitical shocks
  • Japan’s exports in May grew at their fastest pace since November 2022. Exports of semiconductors surged 61.2% in May, driven by booming demand for artificial intelligence technology.
  • The US has emptied the immigration detention camp in the Florida Everglades known as Alligator Alcatraz after the state spent hundreds of millions of dollars on the facility.
  • Is the 14-point draft memo on peace the same one pager we saw previously?
  • Investors pile into bullish dollar bets as ‘US exceptionalism’ trade returns.
  • Messi gets his first hat-trick at the World Cup. Just brilliant.

And finally….

One day I changed a lightbulb, crossed the road and walked into a bar. That’s when I realized my whole life was a joke

Clarence

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