The Aussie market is adding to yesterday’s small gains with a 0.75% or 45 point lift at midday for the ASX 200 index, at its highs, it was 69pts or 1.1% higher. The daily CoVID-19 infection rate in Victoria fell from yesterday’s record high but still remained elevated at 384 in the past 24 hours. Local shares were boosted by a solid lead from Wall Street where major US tech names helped to lift major indices.
Locally, while improvements are rather widespread, miners are the driving force behind early moves higher. Gold miners remain particularly strong with the price of the precious metal hitting all-time record highs in the past day. The moves have been driven by a demand for the safe haven but also a weaker USD/US treasury yields (commodities generally have an inverse relationship to the US dollar).
Iron ore mining names are also adding to broader market gains despite iron ore prices slipping in overnight trade. Fortescue Metals (FMG) is up 4% with BHP Group (BHP) lifting 2.8%. Rio Tinto (RIO), which will release its half-year profit results after market close tomorrow, is up 2.4% after discovering potential copper and gold deposits at and near its Winu site in Western Australia. RIO is targeting first production in 2023.
In other company news, Temple & Webster (TPW) released pre-audited FY20 numbers ahead of the August
reporting season. The online furniture retailer saw revenue of $176.3 million for the year, growth of 74% on the year before with strongest growth in the second half. FY21 has started in a similar vein to the June Qtr. TPW shares are up 4.7%. Elsewhere GUD Holdings (GUD) and Credit Corp (CCP) have also released profit results.
Elsewhere, US-based buy-now pay-later provider Sezzle (SZL) is 1% weaker after signing a partnership with Plaid, a platform which will allow consumers to link their nominated bank account to Sezzle. The company says that the Plaid partnership will lower processing costs & improve customer experience.
Falling consumer confidence for a fifth week running hasn’t dampened the AUD which is firmer at 71.66 US cents. So far, 3.2b units have traded worth $2.9b with 660 stocks higher, 468 weaker and 358 unchanged.
Published by CommSec