ASX Large Caps: Risk appetite is back as ASX goes on four day winning streak

The ASX 200 extends gains on Tuesday
Energy and lithium stocks rally
Healthcare falters, dragged down by Ramsay Healthcare

The ASX 200 finished Tuesday 0.70% higher, extending its string of wins now to four consecutive days.

Most energy stocks rallied on the back of crude prices which have been rising as the dollar weakened and prospects of an Iran nuclear deal revival faded away.

At the time of writing, benchmark Brent crude is trading at US$92 a barrel.

“Risk appetite is back and that is mainly due to the falling dollar, which adding fuel to the rally in crude,” said OANDA analyst, Edward Moya.

“Demand destruction calls have been overdone and oil seems like it could be poised to make a run back above the $100 a barrel level,” he added.

Meanwhile, traders are locked into tonight’s inflation report in the US that will likely show pricing pressure relief.

Consensus forecast is for the CPI rate to rise 8.1% over the year to August, slower than the 8.5% increase recorded in July.

Joseph E Stiglitz a Nobel laureate in economics, said the Fed should pause interest rate rises as US inflation slows.

“Many of the supply-side factors that drove prices higher earlier in the recovery are now being reversed,” he told the Guardian.

“With inflation and inflationary expectations dampening, the Fed should be assigning more weight to the downside risk of additional tightening: namely, that it would push an already battered US economy into recession,” Stiglitz added.

The Fed will make its interest rates call on September 21st.

Back on domestic shores, Australia’s consumer confidence softened by just 0.5% per cent last week according to an ANZ and Roy Morgan survey released today.

On the ASX, Ramsay Healthcare (ASX:RHC) dragged the health sector down after falling 11%, following news that it rejected a takeover offer from private equity giant KKR. The RHC shares are currently on a trading halt.

Pilbara Minerals (ASX:PLS) meanwhile has hit a new high of $4.79 today.

Other lithium stocks like Core Lithium (ASX:CXO) and Allkem (ASX:AKE) also lifted.

BIG CAP WINNERS

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Code	Name	Price	% Change	Volume	Market Cap
JLG	Johns Lyng Group	5.3	6%	1,463,040	$1,298,567,321
GNE	Genesis Energy Ltd	2.35	5%	33,572	$2,341,403,191
CQE	Charter Hall Soc In	3.38	5%	344,029	$1,173,177,976
SQ2	Block	89.17	5%	226,693	$3,502,929,866
BKL	Blackmores Limited	68.66	5%	52,018	$1,269,002,167
PME	Pro Medicus Limited	40.53	5%	173,397	$4,036,165,213
IPH	IPH Limited	7.73	5%	808,814	$1,614,885,932
LIC	Lifestyle Communit.	12.75	5%	122,121	$1,273,359,696
GMG	Goodman Group	18.055	5%	2,672,250	$32,226,840,005
PNI	Pinnacle Investment	6.93	5%	1,167,736	$1,323,084,769
CIP	Centuria I REIT	2.97	4%	1,698,914	$1,809,552,310
MTS	Metcash Limited	4.14	4%	5,627,032	$3,842,855,576
JHX	James Hardie Indust	30.91	4%	1,449,059	$13,238,229,262
NXT	Nextdc Limited	10.505	4%	796,028	$4,616,776,419
ARF	Arena REIT.	4.215	4%	593,708	$1,407,512,209
CEN	Contact Energy Ltd	6.6	4%	7,779	$1,575,384,618
CLW	Chtr H Lwr	4.47	4%	2,238,796	$3,115,938,058
SCP	SCA Property Group	2.85	4%	1,657,888	$3,069,787,215
VUK	Virgin Money Uk PLC	2.28	4%	4,766,497	$1,804,898,053
GOZ	Growthpoint Property	3.51	4%	406,400	$2,615,580,020

The Star Entertainment Group (ASX:SGR) lifted 4% despite being found “unfit to hold a casino licence” in NSW. Star said it was considering its next move.

Chalice Mining (ASX:CHN) jumped 8% after announcing that UBS Bank has sold a substantial chunk of its stake and has ceased to be a substantial shareholder.

BIG CAP LOSERS

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Code	Name	Price	% Change	Volume	Market Cap
LNK	Link Admin Hldg	3.575	-20%	13,212,089	$2,298,183,915
RHC	Ramsay Health Care	63	-10%	3,703,352	$16,069,784,508
SMR	Stanmore Resources	2.27	-4%	1,157,583	$2,127,260,807
YAL	Yancoal Aust Ltd	6.62	-3%	5,242,035	$9,031,805,749
CPU	Computershare Ltd	24.36	-3%	2,462,808	$15,129,457,160
PSI	Psc Insurance Ltd	4.93	-3%	26,278	$1,782,496,042
MCY	Mercury NZ Limited	5.39	-2%	3,081	$7,601,321,310
ANZPF	Cn 6M Per Q Rd T-23	101.5	-2%	16,863	$1,004,232,386
WHC	Whitehaven Coal	8.44	-2%	8,686,889	$8,223,936,207
GNE	Genesis Energy Ltd	2.64	-2%	49,748	$2,824,383,222
IPL	Incitec Pivot	3.76	-2%	22,667,940	$7,438,721,861

Link Group (ASX:LNK) plummeted by 20% after the British regulator said it will only clear the proposed buyout by Canada’s Dye & Durham if Link sets aside £306 million to cover potential fines from the blowup of of investment funds run by Neil Woodford.