ASX 200 closes 0.81% higher as materials sector rebounds

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ASX 200 closes 0.81% higher as materials sector rebounds

 ASX 200 closes 0.81% higher as materials sector rebounds
Image source: © Timonschneider | Megapixl.com

 Highlights

  • The S&P/ASX200 ended 0.81% higher supported by materials and consumer discretionary stocks.
  • Industrials and Information Technology sectors were the top losers on the ASX200 index on Thursday, 7 July 2022.
  • Gold and US dollar both witnessed an upbeat momentum today.

ASX200 has taken a tiny leap of 0.81% or 53.50 points today, to close at 6,648. The Australian share market received this upliftment via ‘somewhat’ rebounding materials sector. In addition, Australia’s monthly trade surplus data for May was out today, which spread some positivity. Australian trade surplus has notably risen to a record AU$16 billion, much above the market expectation of AU$10.8 billion. Exports increased by 9.5% while imports grew by 5.8%.

Meanwhile, on the ASX200 index, Materials and Consumer Discretionary gained maximum. On the loosing side were, Industrials and IT stocks.

Other indices and trends

Volatility indicator A-VIX index dived over 4% today, while All ordinaries index gained 0.775%. large caps, mid-caps and small ordinaries indices also closed in green.

Top Gainers and losers

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

Market movers

  • From the Materials sector, which was slowly crawling back to the green zone, Chalice Mining (ASX:CHN) gained 6.7% after a new nickel-copper-PGE sulphide zone was intersected by it at the Dampier Target. Other bigshots also advanced higher. South32 (ASX:S32), coal mining firm, gained 4.8%, Fortescue Metals (ASX:FMG) ended 4.4% strong and Rio Tinto (ASX:RIO) closed 4.1% up.
  • From the Financials sector, which was the third highest gainer on the ASX200 index, Pinnacle Investment (ASX:PNI) jumped 7.6%. The company had announced its affiliates’ performance fees in FY22.
  • Next, making headlines was Bendigo Bank (ASX:BEN) that agreed to acquire ANZ investment lending portfolio. The acquisition is expected to grow Bendigo Bank’s margins. BEN shares ended Thursday’s trade 1.078% higher.
  • From the Consumer stocks, Crown Resorts (ASX:CWN) was in news as its CEO McCann announced his exit. Crown leadership board also has a few more changes coming up after the Blackstone deal.
  • Also Link Administration (ASX:LNK) shares firmed up 6.3% after Dye & Durham increased its bid for takeover.

In global markets:

Globally, investors were watching closely the minutes from US Fed’s June meeting. The meeting pointers suggested a possibility of more ‘restrictive’ monetary policy to curb long-lasting inflation. Investors are now anticipating a 75-basis point interest rate hike from the Fed by July end. The fear of a global recession seems to be becoming more intense.

However, Asian stocks were gaining on Thursday, on hopes that Fed’s moves would tackle inflation. Japanese Nikkei and South Korean KOSPI indices were gaining alongside China’s Shanghai Composite and Shenzhen Component. However, Hong Kong’s Hang Seng closed slightly lower.

In UK, PM Boris Johnson has denied resigning as the PM and Conservative party leader even after many ministers have quit.

On commodities front:

  • Oil prices were edging higher on Thursday pushed up by supply concerns. Both benchmarks, Brent and WTI, resurrected from their lowest in a decade on Wednesday.
  • While previously, US dollar was appearing to be a preferred choice over gold, the yellow metal has gained back its pace. Today gold prices were tracking dollar, moving in the upward direction. Other precious metals silver, palladium and platinum were strengthening too.
  • Commodities in general have lost a lot on concerns of a demand slowdown globally.

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