Marcus Today End of Day Podcast – Wednesday 28th June

ASX 200 closed up 78 points to 7197 (+1.1%), boosted by cooler-than-expected inflation results. The Aussie dollar fell to 66.43c (-0.6%), and the 2Y and 10Y bonds took a hit following inflation results, before closing down 6bps and 5bps, respectively. Interest rate-sensitive sectors performed well. Consumer discretionary the best-performing sector today WES up 1.3%, JBH up 2.5%, and SGR jumped 11.5%. Banks rallied, with the big four all gaining over 1%, with NAB the standout up 1.9%. Big Bank Basket up to $170.62 (+1.4%). Energy stocks are up on higher oil prices as WTI crude futures rose above $68 a barrel. STO +1.2%, WDS +1.1% and S32 +1.1%. REITS gained as treasury yields fell. Defensive sectors outperformed. Healthcare stocks were mostly better, RMD up 1.1% and RHC up 4.8%. Industrials were strong today, WOW up 0.3%, and ELD up 5.2%. Travel stocks enjoyed a small rally, FLT up 3.1%, KLS up 1.0%, and WEB up 2.8%. Iron ore better, BHP +0.7% RIO +1.0% and FMG +0.3%. Gold was sold off, nearing three-month lows after strong economic data from the US overnight and today’s CPI result. NST -1.0%, EVN -0.9%, and PRU -1.2%. In corporate news, LRS +18.4% confirmed the presence of a significant lithium corridor at its Salinas Lithium Project in Brazil, QAN +3.2% onits management reshuffle, PBH +0.6% board unanimously recommends Fanatics Betting and Gaming’s improved proposal of US$225m to acquire PointsBet’s US Business, HVN up 4.9% on solid preliminary results, and COF +1.8% completed $225m of debt refinance and divests Clarke St property in Canberra for $23m. In economic news, Australia’s headline inflation came in at 5.6%, significantly below consensus of 6.1%, down from 6.8% in April. Core inflation fell to 6.4%, slightly lower than April’s 6.5%. China’s industrial profits fell 18.8% YoY, the decline followed a 20.6% plunge in the prior period as a softening demand squeezed margins reinforcing hopes of more policy support to bolster economic recovery. Asian markets subdued, Japan up 2.0% as the Yen nears a 15-year low on a rising euro, HK flat, and China up 0.1% after Beijing fixed the currency lower than many expected. Bitcoin down 0.42%. Dow Jones futures down 5 points and Nasdaq futures down 44 points.

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