15 July Markets at a glance

Around the grounds

The Australian share market has started off the week with a bumper session, as the S&P/ASX 200 breaks through the 8,000-point milestone to hit a record high. Miners, banks, energy, and healthcare are all higher while Australian listed IT stocks have surged to a 31-month peak fuelled by optimism the US Federal Reserve will begin its easing cycle as soon as September.

The IT sub-index is up just shy of 28% so far this year as of last close, bolstered by an AI-driven rally in the US.

Bigger picture, oil has lost some ground on a stronger US dollar following the assassination attempt on former US President Donald Trump over the weekend, as investors flock to safe havens.

Across the ditch, New Zealand’s NZ50 is lower as investors eagerly await key inflation data due on Wednesday for any further clues on the RBNZ’s monetary policy. Last week the Reserve Bank of New Zealand held rates steady but left the door wide open for an interest rate cut soon, should inflation slow as expected.

In the news

Shares of Star Entertainment Group (SGR) have taken a hit, as the casino operator rushes to close all slot machines at its Sydney, Gold Coast and Brisbane operations after systems were disrupted by performance issues on the tails of a planned upgrade to introduce cashless gaming. The company is working with an external provider to resolve the issues.

The stock is down around 1% YTD, as of last close.

BHP Group (BHP) shares meantime are higher after the mining giant said on Friday it has reached a deal with its Brazilian peer Vale to equally split the costs of any damages related to the deadly dam collapse in 2015.

BHP shares are down 14% this year as of last close.

Australian listed shares of Lion Town Resources (LTR) are in focus after the company confirmed it has entered into a new short-term offtake agreement with Beijing’s Sinomine International Trade to supply spodumene concentrate from its flagship Kathleen Valley Lithium Project in WA.

Elsewhere four Australian banks have been ordered to give back a total of AU$28 million to low-income customers, after a review by ASIC found customers had been kept in high-fee bank accounts despite being eligible for cheaper products. ANZ (ANZ), Commonwealth Bank (CBA), Westpac (WBC) and Bendigo & Adelaide Bank (BEN) kept at least two million customers in accounts under which they were charged higher fees.

Going global

On the global stage the US dollar is stronger, bolstered by safety bids in the wake of the attempted assassination of former U.S. President Donald Trump over the weekend. In response the yen has resumed its struggle to stay afloat despite a suspected intervention by Japanese officials.

Elsewhere, the euro and sterling are lower, while the risk-sensitive Australian dollar eased slightly to 67.7 US cents.

On equities, its thin trading in the Asian region with Japan closed for a holiday, though the news of the Trump shooting has created a cautious tone in the market with some analysts saying the news could further pave the way for Donald Trump to return to the White House. Market participants expect a more hawkish trade policy, less regulation and looser climate change regulations should Trump regain office, with further worries a Trump presidency could re-ignite inflation and government debt.

Finally, GDP figures out of China released earlier showed the economy has continued to falter in the second half, as property and consumer pain worsens keeping alive expectations Beijing will need to unleash more stimulus.  Q2 GDP came in at 4.7%, well below the 5.1% growth analysts were expecting.

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