Australian (ASX) Stock Market Forum

Today's trading on the ASX

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Health stocks were broadly lower, with CSL, ResMed and Sigma all down around 2 per cent, Commonwealth Bank dropped 2.8 per cent and there was rotation into mining stocks.
 
www.marketindex.com.au

Evening Wrap: ASX 200 slides as CBA and Big Banks shellacking frees up cash for surging BHP, FMG, RIO and mining stocks

Finally something to cheer for investors in our big mining stocks! It's been nearly one-way traffic for their share prices over the last 12-months, and not in the direction we'd prefer! But today, they came storming back, with 3, 4, and even 5% gains in many of the majors like BHP, Fortescue...
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Evening Wrap: ASX 200 slides as CBA and Big Banks shellacking frees up cash for surging BHP, FMG, RIO and mining stocks​

The S&P/ASX 200 closed 36.6 points lower, down 0.43%. ... our big mining stocks came storming back, with 3, 4, and even 5% gains in many of the majors like BHP, Fortescue, Sandfire Resources, and Rio Tinto
 
Australia

The Australian equity market retreated from early gains on Friday, closing 36 points lower, down 0.43% at 8,514.20. Strength in the materials sector was outweighed by declines in financials and healthcare, with only three sectors finishing higher while eight ended in the red. Losses in the ASX 200 price index were further exacerbated by a large number of real estate stocks trading ex-dividend.

Materials outperformed, driven by strength in iron ore stocks following reports of low steel inventories in China and news of a US-China trade agreement. The deal reportedly includes a clause affirming China’s commitment to the supply of rare earths. Rio Tinto led the gains among major miners, rising 4.59% to $108.97, while BHP added 3.90% to close at $37.53. In contrast, Lynas Rare Earths fell 3.48% to $8.86 on the trade deal news.

The financials sector declined 1.51% amid profit-taking, following a solid performance earlier in the week. All four major banks posted meaningful losses, with Commonwealth Bank the worst performer, dropping 2.81% to $185.36. Macquarie Group bucked the trend, gaining 1.96% to finish at $220.20.

Healthcare fell 1.41%, led by CSL, which dropped 2.35% after reports that the revamped US vaccine advisory committee may revise its approval guidelines. Meanwhile, Neuren Pharmaceuticals continued its rally following FDA approval earlier in the week, rising another 6.69% to $14.20 and up 13% for the week.

In company-specific news, Reece Plumbing plunged 18.66% after issuing a profit warning, cutting its guidance by nearly 20% to $550 million. The company cited increased competition in the US and stagnant housing activity in Australia as key factors impacting demand for its products.

Bond yields saw only marginal movement, while the Australian dollar strengthened, reaching a six-month high above 0.6550 during the Sydney session. It later eased in offshore trading to start the week at 0.6529. ASX 200 futures closed slightly higher, gaining 5 points or 0.06%.
 
ASX futures suggest a mildly softer open, down 3 points to 8,534. Despite the slight pullback, the ASX 200 has rallied 20% from April lows and closed out the financial year with a 9.7% gain—its strongest annual performance since 2021.
 
ASX futures are up 18 points or 0.2 per cent.

AUD flat at US65.81¢
Gold up 1.1% to $US3338.84 an ounce
Brent oil up 0.7% to $US67.22 a barrel
Iron ore down 0.9% to $US93.15 a tonne
10-year Bonds: US 4.24%, Australia 4.11%
 
ASX futures are pointing 17 points lower, though Wall Street’s strength may help lift sentiment.

In economic news, May trade data is due at 11:30am. Then, US economic releases scheduled for Thursday night include June non-farm payrolls report, weekly jobless claims, factory orders, and durable goods orders.
 
Yes, @Dona Ferentes . Anything copper should have done well today. There is a short squeeze on copper in London as people are selling to the US hand over fist before uncle Donald puts a tariff on the metal. This has caused backwardation. From the FT.com.

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With the market tightening, the LME changed its rules last month, imposing lending requirements on traders with very large positions, to address the volatility being created by some buyers looking to secure large volumes quickly even as stocks run low.
“It’s too dramatic to say the copper market is in crisis but the market is at a very interesting point,” said base metals strategist Alastair Munro of Marex.
The buying frenzy has meant that a typical dynamic of the copper futures market — where prices are usually higher than spot prices — has been upended in a reversal known as “backwardation”. This has meant the spot price last week rose to almost $400 a tonne more than the three-month forward price, the biggest such gap since 2021.
In normal market conditions, the further into the future a contract is dated, the higher the price. This allows smelters, traders and others seeking to hedge their liabilities to “roll” contracts forward without losing money, by buying a near-term contract and selling one further out at a higher price.
The market’s backwardation now poses a risk for sellers of copper: expiring contracts must be settled either by delivering physical metal — which outside the US is in short supply — or by rolling their positions forward at a loss, which entails buying metal at the higher, near-term price while agreeing to sell it in the future at a lower one.
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All short term stuff but prices often form a new base after these moves and the markets get a bit of a shakeup. All good for the ASX which for overseas investors is a quarry plus CBA of course.

gg
 
ASX futures are pointing up 27 points or 0.3 per cent to 8611.
  • AUD -0.2% to US65.70¢
  • Bitcoin +0.7% to $US110,032
  • Gold -0.9% to $US3326.10 an ounce
  • Brent oil -0.3% to $US68.89 a barrel
  • Iron ore +1.5% to $US96.55 a tonne
  • 10-year yield: US 4.35%, Australia 4.18%
Wall St was up, and not open tonight July the Fourth
 
I'm still bullish on stocks and reckon I'll win the comp for the XAO target value this year. Australia is well placed to follow US markets up.

gg
 
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