The ASX 200 rose 16 points to 8,839 (+0.2%) after a strong start was derailed by better-than-expected jobs data.

Banks were firm, with CBA climbing 0.4% and the Big Bank Basket up to $286. Elsewhere, financials eased back following the news from MQG that CEO Shemara Wikramanayake will step down in November to be replaced by Greg Ward. The stock fell 0.5% on the news. We also saw losses in the insurance sector, with QBE down 1.1% and SUN falling 1.9%. Once again, it was the industrials that came under pressure, with the tech space falling hard as US software stocks weakened. XRO dropped 5.0%, WTC fell 7.0%, and TNE also suffered. The All-Tech Index fell 2.9%, with 360 down 5.5% too. Industrials eased back, with TLS down 0.6%, while REA, CAR and SEK also fell. Retail stocks were weaker, led lower by WES. Utilities firmed, with ORG up 0.8%.

Resources were stronger again today, with BHP up 1.5% and FMG rising 1.0%. S32 had another good day, and we saw a bounce in lithium stocks, with LTR up 3.6% and PLS rising 1.9%. Gold miners were also slightly firmer as bullion managed to hold on to recent gains. Coal stocks were better, along with uranium names, with PDN the standout following broker upgrades, up 11.6%.

In corporate news, GDG had a cracker of a day, rising 37.1% after updating its funds under management. STO narrowed its production guidance to 99m to 105m barrels of oil equivalent. Elsewhere, SFR had a good day after reporting record quarterly revenue.

In economic news, the latest jobs data pointed to a resilient economy, with the unemployment rate holding at 4.4%, although most of the employment growth came from part-time jobs. The result is likely to keep pressure on the RBA to raise interest rates.

Asian markets were better, Nikkei 225 up 0.9, HK up 1.4% and China up 0.1% – Korea up 4.3%. US futures drifting lower – Dow down 44 and Nasdaq down 100. Oil firms. European futures off slightly.

HIGHLIGHTS

  • Winners: GDG, PDN, IMR, CU6, BRE, AYA, CXO
  • Losers: AXQ, TC, PME, 360, IPX, XRO, SEK, NEU
  • Positive Sectors: Banks. Copper. Gold. Uranium. Lithium.
  • Negative Sectors: Tech. Retail. Healthcare. Insurers.
  • ASX 200 Hi 8926 Lo 8839
  • Big Bank Basket: Rises to $284.71 (+0.6%)
  • All-Tech Index: Down 2.9%.
  • Gold: Steady at $5884
  • Bitcoin: Rises to US$65692
  • 10-year yields: Higher at 5.00%
  • AUD: Rallies to 70.13c on jobs data.
  • Oil up – US Futures down.

MARKET MOVERS

  • OFX +69.5% takeover offer at 100c.
  • GDG +37.1% jump in FUM.
  • PDN +11.6% broker upgrades.
  • MI6 +5.6% fighting back.
  • CXO +6.3% lithium bounce.
  • 29M +10.6% investor presentation.
  • PMT +6.7% non-binding LOI with Cree Nation.
  • AXQ -12.0% another down day.
  • WTC -7.0% tech on the nose.
  • PME -6.5% sell-off continues.
  • EIQ -4.4% AI exposed selling.
  • SEK -4.9% hidden!
  • BTL -11.1% gives back some gains.
  • MYG -5.8% struggling.
  • Yesterday’s Hero: MYE +1.1%
  • Speculative Stock of the Day: CTS +132% new IPO listed today. Novel ultrasound technology.

ECONOMIC AND OTHER NEWS

  • Jobs data showed that 76,000 jobs were created in June – well above consensus expectations of 15,000. The unemployment rate held at 4.4%.
  • AMP deputy chief economist Diana Mousina said stronger-than-expected jobs data had given the green light for the Reserve Bank of Australia to hike rates for a fourth time this year.
  • Some high-profile Chinese funds are pivoting to AI stocks, adding names like Semiconductor Manufacturing International Corp and Suzhou Dongshan Precision Manufacturing Co to their portfolios.
  • Nokia’s profit beats estimates, data centres boost growth.
  • Google burns through US$6bn in cash as the spending on AI continues to climb.
  • Russia forced to import fuel from India as strikes on its refineries by Ukraine take their toll.
  • Houthis attack two Saudi Arabian oil tankers.
  • Uber founder Travis Kalanick raises US$1.7bn for new startup.
  • GIC- and BlackRock-backed Indian space startup Skyroot is planning to start commercial operations in 2027.  Skyroot will compete in the sub-1,000 kg market with U.S. based startups such as Rocket Lab, Firefly Aerospace, Astra Space, and Chinese private firms i-Space, Galactic Energy, CAS Space.

And finally…..

I told my Wife I was building a model of Mount Everest, she asked, “Is it to scale?”, I replied, ” No, it’s to look at”

Clarence

XXX