The ASX 200 finished a touch higher, though there was a big intra-day reversal following stronger employment data out at 11.30am. The index was up more than 100pts before giving back most of the rally as investors increased the odds of another RBA rate hike.
Australia added 76,000 jobs in June, well ahead of the 15,000 expected, while unemployment held at 4.4%. The result pushed the Australian dollar above US70¢ and the 10-year bond yield toward 5%, with markets now pricing a 36% chance of an August rate rise with a full hike priced in by year-end. Next week’s quarterly inflation data has now become even more important.
Resources were as strong as tech was weak, with selling really kicking up in the interest rate sensitive growth names.
- ASX 200: +16.03pts / +0.18% to 8,839.00
- AUD/USD: 0.7013 / +0.23%
- Best sectors: Materials +1.37%, Energy +0.98%, Utilities +0.65%
- Worst sectors: Information Technology -3.32%, Consumer Discretionary -1.52%, Healthcare -1.43%
- Generation Development Group (GDG) +37.13% to $4.58 was the standout performer after reporting record quarterly sales and a 36% increase in group funds under management to $46.4bn. Generation Life recorded quarterly sales inflows of $442m, while Evidentia’s FUM reached $40.5bn following $3.5bn of June-quarter net inflows, including the transition of the Xplore Wealth portfolio. A huge result in the context of where the shares were trading – more on this later.
- Paladin Energy (PDN) +11.61% to $10.19 extended its strong run after UBS upgraded to a BUY ($11.70 PT) following yesterday’s production numbers.
- James Hardie Industries (JHX) +6.14% to $36.99 rallied after upgrading June-quarter sales guidance to US$1.449–US$1.475bn.
- Deep Yellow (DYL) +5.56% to $1.43 was also strongly supported as uranium names continued to rebound.
- Lithium stocks rallied, with Liontown Resources (LTR) +3.64% to $1.28, IGO Ltd (IGO) +3.13% and PLS Group (PLS) +1.93%.
- Sandfire Resources (SFR) +3.58% to $19.36 rose after delivering record quarterly revenue, stronger copper-equivalent production and a $353m net cash position at the end of FY26.
- Karoon Energy (KAR) +3.53% to $1.62 gained after generating US$116.4m of June-quarter sales revenue from production of 1.08mmboe.
- BHP Group (BHP) +1.46% to $60.63 was supported by firmer commodity prices, while Rio Tinto (RIO) +0.47% to $162.74 and Fortescue (FMG) +1.02% to $18.76 also finished higher.
- Gold stocks remained well bid as bullion held above US$4,100/oz. Northern Star Resources (NST) +1.92% to $20.74, Evolution Mining (EVN) +1.85% and Newmont Corporation (NEM) +0.88% to $136.85 all advanced.
- The major banks recovered from their intraday pullback. National Australia Bank (NAB) +1.38% to $39.81, Westpac (WBC) +0.83% to $36.64, ANZ Group (ANZ) +0.64% to $35.96 and Commonwealth Bank (CBA) +0.36% to $172.30 all closed higher despite rising bond yields.
- Macquarie Group (MQG) -0.46% to $253.75 eased after chief executive Shemara Wikramanayake announced she would retire in November, with banking and financial services head Greg Ward appointed as her successor. Ward is a safe internal choice, although the leadership transition overshadowed an otherwise solid first-quarter trading update.
- Technology was hit hard following a weaker market reaction to Alphabet’s earnings and stronger jobs report locally putting bond yields higher.
- WiseTech Global (WTC) -6.97% to $31.48, Xero (XRO) -5.01% to $64.45 and TechnologyOne (TNE) -3.65% to $28.21 were among the largest drags.
- Pro Medicus (PME) -6.53% to $162.13, Neuren Pharmaceuticals (NEU) -4.80% to $16.46 and 4DMedical (4DX) -4.42% to $3.24 also declined as investors reduced exposure to growth stocks.
- Life360 (360) -5.45% to $24.12, IperionX (IPX) -5.13% to $3.33, SEEK (SEK) -4.93% to $13.10 and Zip Co (ZIP) -4.68% to $2.65 were also sharply weaker.
- Healthcare remained under pressure. CSL Ltd (CSL) -1.86% to $115.75 declined further, while Cochlear (COH) -0.07% was broadly unchanged after its sharp fall yesterday.
- Origin Energy (ORG) +0.77% gained despite confirming a customer-data leak that may have exposed names, addresses, dates of birth and partial payment details. The company is still assessing how many of its 4.8m customer accounts were affected.
- Brent crude: +2.3% to ~US$96.24/bbl, taking its July gain to around 30% after Iran-backed Houthi militants claimed attacks on two Saudi Arabian tankers in the Red Sea.
- Gold: around US$4,130/oz, holding recent gains as dip-buying offset concerns that higher energy prices could keep interest rates elevated.
- Iron ore: +1.7% to ~US$98.30/t, providing support for the diversified miners.
- Asian Markets: China +0.25%, Hong Kong +1.25% and Japan +0.42%
- S&P 500 E-mini futures: -16.25 points / -0.22%
- Dow E-mini futures: -97 points / -0.18%
- US companies we own reporting this week; Blackstone (BX US), Chubb (CB US) & Freeport McMoRan (FCX US).
