Marcus Today End of Day Podcast – Wednesday 26th July
ASX 200closed up 62 points to 7402 (+0.9%), hitting a five-month high, while the Aussie dollar and bond yields fell on softer-then-expected inflation data reducing pressure on the RBA to tighten policy further. Miners continued their rally today on China’s stimulus pledge, sector majors BHP up 2.3%, RIO gained 1.4% and FMG up 2.3%. Banks up today, recovering yesterday’s losses, with the big four all in positive territory, all gaining over 1.5%. Big Bank Basket up to $180.59 (+1.1%). Tech stocks good, WTC +2.4%, ALU +1.9%, and XRO up 0.7%. Consumer discretionary sector jumped on inflation results, LOV up 3.6%, PMV up 2.8% and WES +1.1%. Energy stocks energetic, BPT up 6.9%, STX +2.3%, and WHC gained 1.8%. Gold struggling to find momentum ahead of Fed meeting tonight. Healthcare sector continues to struggle, CSL off 1.0%. REITS down despite a fall in bond yields, GMG and SCG both down 1.1%. Lithium miners clocked a second great day, with LTR, AKE and PLS up another 1.4%, 2.5%, and 4.6%, respectively.
In corporate news, KGN jumped 10.0% on good results, BGL down 0.3% on construction update, CTD +0.9% on increased EBITDA guidance, MIN up 4.1% despite missing lithium shipments guidance, ASB fell 10.5% after lowering FY EBIT guidance, and CAT rose 5.7% after reporting a 20% growth in revenue.
In economics, local inflation cools down. Q2 CPI fell to 6.0%, beating expectations of 6.2%, down from 7% in the previous quarter. Monthly CPI came in lower as well at 5.4% in June from 5.5% in May, matching expectations. Bond traders pricing in a 54% chance of a rate hike by the RBA next week. Asian markets are down letting go of yesterday’s gains, Japan down 0.1%, HK off 0.7%, with China slipping 0.5%. Australia’s 10Y yield down to 4.01%. Dow Jones futures down 24 points, and Nasdaq futures down 28 points.
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