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It has been a solid opening to the new trading week with the ASX 200 rising 53 points or 0.83% to 6458 at lunch on Monday. The improvements on the Aussie market followed a 300 point rally for the Dow Jones on Wall St to end last week’s volatile trading. Equities rebounded from losses as bond yields improved, with the yield curve inversion mid last week leading market participants to fret over an increased likelihood of recession.

Gains have been mostly across the board with nearly every sector posting improvements after two hours of trade. Materials and communications are underperforming and trading flat at lunch. Leading the advances are the energy,
consumer staples and IT sectors.

Some of the biggest individual movers, in both directions, are in response to the release of profit results. The most improved stock of the top 200 is Smart Group (SIQ) which has jumped 21%. The fleet management & salary packaging firm announced its half year results after the market close on Friday.

Lendlease (LLC) is 10.7% higher despite the property group announcing a 41% slide in full year net profit to $467 million, but still exceeding consensus expectations according to Bloomberg. Energy producer, Beach Energy (BPT) is lifting 7% with a near tripling of its profit to $577 million. BPT also raised its 5 year production guidance.

At the other end of the scale, Bluescope Steel (BSL) is among the worst performing after disappointing the market with its full year results. While revenue and underlying net profit lifted, its weaker guidance for underlying earnings due to steel spreads for the new financial year has weighed on its share price, which is tumbling 8.5%. Outdoor advertising company, oOh!media (OML) continues its decline with a 6.5% slide today, after slumping 27.5% last Friday on an earnings downgrade.

The Aussie dollar is currently buying 67.75 US cents with little on the economic calendar to move the needle this week. There will be some interest when RBA Governor Phillip Lowe speaks in front of other central bankers at the Jackson Hole Symposium in the US over the weekend.

So far, 1.1b units have been traded worth $1.8b with 632 stocks higher, 381 weaker and 321 unchanged.

Published by CommSec