Marcus Today End of Day Podcast – Monday 3rd July

ASX 200 closed up 43 points to 7246 (+0.6%), supported by a rise in commodity prices, starting the new financial year off in the positive, extending gains from the previous session. At best ASX 200 up 51 points, at worst down 4 points. The Gold sector performed well today supported by the rise in bullion prices a sign market participants are positioning themselves for a potential rate hike from the RBA tomorrow. Australia’s largest gold miner NCM jumped 2.5% marking its best day in more than four weeks. Tech the worst performing sector today, with the All-Tech Index down 0.6%. Banks also posted some gains ahead of tomorrow’s RBA decision, with rate hikes likely to be paused. ANZ leading the charge, up 0.8% and CBA up 0.7%. The Big Bank Basket is at $172.67 (+0.6%). REITs higher as bond yields steadied.. Resources doing well on commodity prices, Iron ore miners gained, BHP up 0.6%, RIO up 0.7% and FMG up 0.4%. Lithium also up today with LRS and LTR up 7.8% and 0.7%. Healthcare having a mixed day as CSL dropped lower, down 0.4% and RHC gained 0.8%. Energy stocks mixed up as oil prices steadied after record losing run, STO +1%, BPT +1.9% while STX fell 1.1%. In corporate news, PSI down 10.4% after responding to ASX’s query. UMG up 8.6% after accepting an offer to be acquired by Malteries Soufflet at 500c. NWH dropped 1.6% despite their subsidiary being awarded a $973m contract by Northern Star. In economic news, Australia’s building permits rebounded sharply in May surging 20.6% MoM, recovering from a 6.8% fall in April. Job ads in Australia fall 2.5% MoM in June, but on an annual basis job ads fell 10% but remain 45% above pre-pandemic levels. Australian home loans rose 4% in May, reversing a 3.8% decline in April. Lastly, China’s manufacturing growth slows less than expected with Caixin China General manufacturing falling to 50.5 in June from 50.9 in May above consensus of 50.2. Asian markets are up, Japan up 1.4% boosted by tech shares, HK up 1.9% reversing losses from the previous two sessions with China up 1.4% despite underwhelming economic data. Australian bond yields dip ahead of the RBA’s interest rate decision tomorrow. 2Y yield down 17bpd to 4.17%, and the 10Y yield fell 5bps to 3.97%. Bitcoin up 0.3%. Dow Jones futures down 25 points and Nasdaq futures up 8 points.

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