Tuesday 25th July 2023
Miners push ASX200 (ASX:XJO) higher on China stimulus, retail hit on Domino's weakness
News that the Chinese government was committed to supporting a slowing economy with economic stimulus were enough to drive both the All Ordinaries (ASX:XAO) and S&P/ASX200 (ASX:XJO) to a 0.5 per cent gain. Both the materials and energy sectors did all the heavy lifting, gaining 2.7 per cent and 1.2 per cent respectively. It was all about iron ore, on hopes that stimulus will be directed to infrastructure and property construction spending, with Fortescue (ASX:FMG) and BHP (ASX:BHP) finishing 4.6 and 3.3 per cent higher. Lithium miner Pilbara (ASX:PLS) was the top performing stock, gaining 5.2 per cent while the energy sector also benefitted from hopes of faster global growth, as Woodside (ASX:WDS) rallied 1.2 per cent. Most of the weakness came from the consumer discretionary sector, with both Wesfarmers (ASX:WES) and Domino’s (ASX:DMP) dropping after news that their US counterparts had seen slowing sales growth across their store network.
Monadelphous secured $200 million contract, Vanguard hit with greenwashing claim
Shares in mining services provider Monadelphous (ASX:MND) surged to a 5.4 per cent gain after the group confirmed it had secured a contract with lithium miner Albemarle. The $200 million deal with support the expansion of the groups Kemerton lithium hydroxide plan in Western Australia including two new processing trains. Index manager Vanguard has been hit with a claim of greenwashing by the corporate regulator, with ASX alleging the group’s label did not reflect the underlying investments. It refers to the ‘ethical bond fund’ which according to the claim potentially held a number of questionable fossil fuel investments.
US stocks move higher, Verizon, GE top expectations, Alphabet earnings ahead
The Dow Jones extended its winning streak to a 12th straight day, albeit only slightly, gaining 0.1 per cent while the Nasdaq and S&P500 outperforming, increasing 0.6 and 0.3 per cent on a strong day of earnings. All three benchmarks are now up over 5 per cent for the month, with investors looking to the next Fed rate decision for more direction. Shares in GE jumped by more than 6 per cent, nearing a five year high, after reporting double digit growth in orders, revenue and operating profit, sending revenue 18 per cent higher. Both aerospace and renewable energy were particular highlights, as sales surged 28 and 18 per cent. In a positive sign for Telstra, Verizon Communications (NYSE:VZ) gained closed to 1 per cent after the group managed a small gain in new subscribers, albeit only 8,000 which came after a simplification of their business offerings. Both profit and revenue slowed slightly on the prior quarter.
Drew is editor of The Inside Network's publications and a principal adviser at Wattle Partners.
