ASX 200 closes 1.11% higher, Energy, A-REITs steal the show

The Australian index ASX 200 gained 1.11% to 6,612.60 points during Monday’s trade, retracing last week’s losses. Investors witnessed a broad-based rally as all sectors were trading in the green. The energy sector gained maximum, followed by A-REITs and Consumer Discretionary. Even the Australian dollar regained pace after hitting its two-year low on Friday.

Even after a positive day, investors are worried and keep an eye on the central bank's rate decision due tomorrow. As per various media reports, another half a percentage hike is expected.

 Market movers

• In the morning, Link Administration Holding Limited (ASX:LNK) made headlines for rejecting the reduced takeover bid by Dye & Durham.

• Breville Group Ltd. (ASX:BRG) shares moved 5.1% higher after it completed the acquisition of Italian coffee business LELIT.
• Shares of Magellan Financial Group Limited (ASX:MFG) dived over 9.9% after the company announced the exit of its sales and distribution lead, Frank Casarotti. MFG remained a part of top losers list on ASX throughout the day.
• While the materials sector was among the least gainers, Whitehaven Coal Ltd (ASX:WHC) was under investor’s radar. The coal focused company briefed investors about its well progressed buy-back, which helped WHC shares gain over 2.5%.
• The energy sector, however, stole the show with maximum gains. This sector majors like Santos Limited (ASX:STO) advanced 3.3%, and Woodside Energy gained 2.7%.

Other market trends & indices

Market Volatility index, A-VIX remained low, down by 0.1%. Meanwhile, the All-Ordinaries index gained more than 1.138%. Aussie Large caps were also stronger as the representative ASX 50 index (XFL) firmed up 1.073%. The ASX Midcap 50 index (XMD) gained 1.191%, and the Small Ordinaries index (XSO) closed 1.362% higher.

Best and worst performers

Image Source ^© 2022 Kalkine Media ®, data source- ASX website

Global markets

In the US, Stocks rallied near the market close on Friday ahead of a long weekend. US markets shall remain closed today, 4 July marking the Independence Day holiday.

In Asia, stock markets painted a mixed picture as investors continued to be anxious about the recession-economic slowdown and inflation. Japanese Nikkei ended Monday’s trade higher, while neighbour South Korean KOSPI fell. Hong Kong’s Hang Seng was lower alongside the Chinese Shanghai Composite, while the Shenzhen Component index traded up. Notably China again witnessed a rise in Covid cases during the weekend, increasing doubts about its economic recovery.

In Europe, stock markets are expected to open in a mixed state. Even though trading activity today might get impacted due to the US Independence Day holiday, investors will remain focused on economic datasets. Investors want to make the most beginning the second half of the year. Investors would keep an eye on the German trade and Spanish unemployment figures. In addition, Eurozone PPI numbers are also expected.

On commodities front

• Oil prices tumbled in the starting due to recessionary fears but have been able to reverse losses on continued concerns of tight supply. However, oil benchmarks Brent and West Texas Intermediate (WTI) is still slipping down.
• Industrial metals copper, steel and iron ore were on a southward trail.
• Gold was shining brighter on Monday morning as the US dollar fell on growth fears. The yellow metal often traces the opposite path of the US dollar. Another influencer on gold prices was the hike in gold import duty in India, the world’s second-largest consumer. 

Want to know- Will RBA raise cash rate by 0.50% for second consecutive time tomorrow?