Marcus Today End of Day Podcast – Tuesday 4th July

The ASX 200rallied 33 points to 7279 (+0.5%), bouncing back from 7,232 lows following the RBA’s decision to hold rates at 4.1%. The Aussie dollar fell 0.2% to 66.58c, and the 2Y yield was virtually unchanged, up 1bps. Gold miners are happy, buoyed by stronger bullion prices. EVN up 1.8%, NST gained 1.6%, NCM up 1.2%. Iron ore miners mixed as US manufacturing PMI fell, and optimism was buoyed by the RBA, BHP lower 0.1% and RIO down 1.2%. Lithium was mostly up as PLS gained 2.2% and SYA rose 3.0%. Base metal stocks rose on the back of higher copper prices overnight. Banks had a good day. Big Bank basket closed up at $174.87 (+1.3%), led by CBA up 1.3% and NAB up 1.3%. Energy stocks were in demand thanks to Saudi Arabia and Russia cutting oil production, sending prices higher, WDS up 1.4%, WHC gained 2.4%, and BPT rose 1.1%. Healthcare under pressure, RMD down 1.3% and SHL off 0.8%, while insurers found support QBE gained 1.0% and MPL up 1.7%. In corporate news, CGC jumped 12.8% after receiving a takeover bid, EMR up 5.9% on gold discovery, SUN gained 0.6% despite announcing the cost of reinsurance premiums to increase more than $250m in FY24, IVC down 0.2% after extending TPG exclusivity offer, and SLR gained 5.8% on record quarterly sales results. In economic news, the RBA decided to leave the cash rate unchanged at 4.1%. Further tightening may be required, but the decision to hold provides the board more time to assess the state of the economy and economic outlook and associated risks. Asian markets down. Japan down 0.6% on profit-taking, while HK is on track for a third consecutive day of losses, down 0.1%, and China off 0.2%. Australia 10Y yield up to 4.01% after a steep fall on the pause announcement. Bitcoin down 0.33%. Dow Jones futures down 10 points and Nasdaq futures down 18 points.

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