Marcus Today End of Day Podcast – Thursday 20th July

The ASX 200closed flat, near unchanged, up 1 point to 7325, after jumping over 50 points in early trade before unemployment data dampened the market’s mood raising bets of further tightening from the RBA. The Aussie dollar jumped 0.6% to 68.15c, clawing back recent losses, and bond yields rose with 2Y yield up 12bps, and 10Y yield up 9bps on jobs data. Financials performed well today, with the big four banks all ending in positive territory. The Big Bank Basket up to $180.66 (+0.3%). Interest rate-sensitive tech stocks are in demand tracking their US peers despite the market betting on further rate hikes to come. CPU +1.4%, XRO +0.3% and WTC +0.6%. Gold miners were punished today in a broad sell-off. NST fell 6.6%, NCM off 0.4%, and EVN down 0.5% despite gold production exceeding guidance. Miners flat, even as iron ore slipped. FMG up 1.4% and RIO up 0.4%. Defensive sectors underperformed, with healthcare and Telecoms in the red. RMD off 0.8%, RHC down 1.0%, and TLS fell 0.12% after confirming its plans to cut 472 jobs. REITS fell as bond yields rose.

In corporate news, MIN +5.2% after it agreed to sell its interest in the Kemerton Lithium refinery, ZIP +2.3% on better results, with revenue up 21%. FLT up 4.0% on upgraded profit guidance, NXL surged 36.6% after announcing it anticipates sales to rise 20% to reach $183m, QBE +2.4% confirmed guidance, BHP flat, meeting production expectations, STO down 0.1% after trimming production forecast, and SMR up 5.8% on solid production results.

In economics, Australia’s jobless rate was unchanged at 3.5% in June, and China left interest rates unchanged. Asian markets mixed, Japan down 0.8%, HK up 0.3% and China down 0.3%. Dow Jones futures up 4 points, and Nasdaq futures down 59 points.

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