The ASX 200 finished a strong week up +3.2%, posting new highs on three of the five sessions. August is only one full week old, and the local market has already surged towards 9300 as the miners continue to drive the index higher. Monday is set to deliver a repeat performance as a soft US jobs report dulled the prospects of Fed rate hikes, pushing the miners and, in particular, gold names substantially higher after the precious metal surged over US$100.
Last week’s winners and losers were split into two very distinct halves, with gold names leading the market higher, while oil & gas stocks struggled as tensions eased between the US and Iran.
Winners: Minerals 260 (ASX: MI6) +29%, DroneShield (ASX: DRO) +29%, Neuren Pharma (ASX: NEU) +26%, Genesis Minerals (ASX: GMD) +25%, Pantoro Gold (ASX: PNR) +24%, Vault Minerals (ASX: VAU) +22%, and Liontown (ASX: LTR) +22%.
Losers: Viva Energy (ASX: VEA) -7%, Beach Energy (ASX: BPT) -5%, Karoon Energy (ASX: KAR) -5%, Block Inc (ASX: XYZ) -3%, Woodside Energy (ASX: WDS) -3%, ResMed (ASX: RMD) -3%, APA Group (ASX: APA) -3%, and Fortescue (ASX: FMG) -3%.
Weekly snapshot: Last week the ASX was in a bullish mood, embracing any news in a “glass half full” fashion:
- The ASX200 set the bullish tone on Monday, reversing early losses to close strongly after President Trump called off planned strikes on Iran.
- Tuesday was a stellar day for the ASX after a flat opening; the index delivered triple-digit gains, as we keep saying the markets found its “Mojo.”
- Another strong session on Wednesday saw the local index pop to new highs with gold and mining stocks leading the way, ably supported by beaten-up tech names.
- The song remained the same on Thursday as gold extended its strongest rally in 6-months.
On the economic front, next week will be dominated by Wednesday’s US CPI report and the RBA’s interest rate decision, with both likely to set the tone for the respective equity markets. Investors will also be watching developments in the US-Iran negotiations and the Strait of Hormuz. On the stock level in Australia, we hear from CBA, which will likely set the mood for the influential banks, while the likes of Telstra, Suncorp, CAR Group, and QBE results will be watched carefully – reporting is heating up.
Overseas markets ended the week on the front foot with many bourses posting new highs as traders embraced a weak jobs report. In Europe, the EURO STOXX 50 and the UK FTSE both advanced by +0.3% in Friday’s session. In the US, the tech-based NASDAQ (+1.2%) and small-cap Russell 2000 (+1.1%) ended the week strongly.
- The SPI Futures are calling the ASX200 to open up +0.4% on Monday, back around 9300, helped by a ~$1 gain by BHP in US trade.
