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The ASX was a story of two tales today, with early gains driven by gold miners and the major banks as global risk sentiment improved following progress in US–China trade talks. While the index was up as much as +58pts in the morning, residual sentiment from Wednesday’s hot CPI print prevailed as the gravity of potentially stagnant interest rates for the next ~4 months weighed in, with the broader market slowly but steadily weakening through the afternoon and into negative territory on the close.
- The ASX200 fell -3pts/-0.04% to close at 8881.
- Energy (+0.6%), Communications (+0.45%) and Real Estate (+0.23%) the strongest on the day.
- Consumer Discretionary (-1.7%), Utilities (-1.12%) and IT (-0.55%) slid.
- Gold miners benefited from a bounce in bullion prices after the recent sell off – Westgold (WGX) +5.3%, Newmont (NEM) +3.2%, Bellevue Gold (BGL) +2.18%, and Evolution Mining (EVN) +3.5% were all stronger.
- Commonwealth Bank (CBA) +0.6% led financials, helping drive the index to its afternoon highs before the Big Four faded to varying degrees into the close with Westpac (WBC) +1.1% higher but NAB -0.1%.
- ANZ -0.6% declined after outlining a $1.1b after tax charge linked to restructuring under new CEO Nuno Matos and confirming that the Suncorp Bank acquisition would add $141mn in goodwill.
- Steadfast (SDF) -9.6% fell sharply as CEO Robert Kelly stepped aside pending an internal investigation into staff allegations, sparking a 7–9% sell off.
- Origin Energy (ORG) -2.8% weakened after reporting flat gas production from its APLNG venture and a 12% decline in retail gas sales year on year.
- Endeavour Group (EDV) -2.8% edged lower after Dan Murphy’s and BWS sales fell 1%, with management citing slower retail activity offset by a solid performance in the hotels division.
- ResMed (RMD) +1.6% rose following Q1 earnings up 9% to US$1.3b, with the company announcing plans to expand US manufacturing capacity to meet strong demand.
- Humm Group (HUM) -9% dropped after reporting a 14% fall in quarterly loan originations, weighed down by tech issues and tighter credit criteria for its BNPL product.
- AGL Energy (AGL) +1.3%announced plans to cut 300 jobs across NSW and Victorian operations by year end, amid continued restructuring ahead of scheduled generator closures.
- Mayne Pharma (MYX) -31.4% collapsed after Treasurer Jim Chalmers indicated he would reject Cosette’s $672m takeover bid, citing national interest concerns tied to potential job losses at the Adelaide manufacturing site.
- Asian markets were mixed, with Hong Kong off -0.9%, China down -0.6%, while Japan was +1.7%.
- Gold traded down during the session to $3997/oz around the close.
- Iron Ore in Singapore traded down -0.3%, now trading $106/mt at our close.
- US futures are positive, but mixed, Nasdaq +1.1%, SP500 +0.6% and the Dow Jones flat.
- US Reporting tonight features two big Energy names, Exxon Mobil (XOM US) and Chevron Corp (CVX US).
