• ASX rallies 2% today on the back of Friday’s strong session on Wall Street
  • Banks, miners, energy and tech all rise by over 2%
  • Fed and ECB bosses will convene mid-week

The ASX rose strongly across the board today, up by 2%, following Friday’s rally on Wall Street.

ASX bank shares outperformed the broader market as investors reacted positively to news that US banks had aced the Fed’s annual ‘stress tests’.

These tests were designed to show that banks are able to withstand a hypothetical severe recession, and this year’s results have given a strong signal of the financial strength of the US banking system.

The results also dictate how much capital banks need to hold, and how much they can return to shareholders in the form of dividends.

Other sectors to have surged by over 2% today include Tech, Energy, and Mining.

The miners are rising as iron ore futures climbed in Asian hours. Lithium stocks have also bounced back from last week’s selloff.

Oil prices rose on Friday and Brent crude and WTI have unwound most of early last week’s losses. The benchmark Brent is now trading at US$113.05 a barrel.

“We are unlikely to see Brent crude below $100 in this environment, whatever noise we are hearing from other asset classes,” said Oanda’s market analyst, Jeff Halley.

Gold stocks meanwhile took a mini dive today after Evolution Mining cut its output and warned of higher costs for the rest of the year.

Looking ahead this week, all eyes will turn to the ECB forum in Portugal this Wednesday, with Fed’s Powell, ECB’s Lagarde, and BOE’s Bailey all speaking. OPEC+ will also meet to talk about its August oil production later in the week.

Meanwhile, Bitcoin is holding steady in Asian trading today, and is currently trading at US$21,180.
 

BIG CAP WINNERS

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Imugene (ASX:IMU) was the best large cap performer today, up by 37%.

The biotech has reported positive final overall survival data from its Phase 2 study of HER-Vaxx, following analysis of the safety and efficacy data. The results showed a 41.5% survival benefit for patients treated with HER-Vaxx plus SOC chemotherapy compared to SOC chemotherapy alone.

Core Lithium (ASX:CXO) rallied 13% on the back of renewed sentiment, while Pointsbet (ASX:PBH) rose by 11% on no specific news.
 

BIG CAP LOSERS

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Evolution Mining (ASX:EVN) plunged 20% after saying that its FY22 gold production will be 640,000 ounces, down from its original guidance of 700,000 to 760,000 ounces. The company has also warned investors of higher costs ahead.

Northern Star (ASX:NST), a fellow gold producer, fell by 12% on the Evolution news.