• The ASX surged by over 1.65% as risk sentiment rises after weak US CPI
  • All 11 ASX sectors finished in the green, led by Mining, Discretionary and Real Estate
  • All eyes are now on the US earnings season which will kick off tonight


Local shares surged by 1.65% on Thursday after the softer-than-expected US inflation overnight spurred bets the Fed might be done with its rate hikes.

Overnight, the S&P 500 and tech heavy Nasdaq climbed by around 1% each as US headline inflation slid to a 2-year low. The headline CPI of 3% was 1% lower than the previous month, and just one-third of what it was at the same time last year.

Hedge fund managers are now betting that the US dollar will fall against all major currencies including the AUD, which surged to 68c after the inflation print.

On the ASX today, all 11 sectors finished in the green, led by Mining and interest rate-sensitive Real Estate and Discretionary sectors.

Gold miners in particular had a huge day as bond yields fell, with Evolution Mining (ASX:EVN)and Northern Star Resources (ASX:NST) lifting by 8% and 4% respectively.

Fortescue Metals (ASX:FMG) meanwhile rose 1% after chairman Andrew Forrest announced a split with his wife of 31 years.

To economics, data from the ABS today showed that total wages paid rose by 0.5% in June, while payroll jobs rose 0.3% YoY during the month YoY, softening from 1.1% a month earlier.

There’s more bleak news out of China as its exports plunged by 12.4% in June compared to a year ago. Imports also fell 6.8% versus expectations of 4.1%.

The next trigger point for the market however will be the US earnings season, which will kick off tonight with Delta Air Lines and PepsiCo both reporting.

“Earnings is a big test for markets, given the massive start to 2023,” said Josh Gilbert, a market analyst at eToro.

“Guidance will be key to that, especially for the tech names that have led the rally but saw near 10% profits fall last quarter.

“A particular focus will be on how far the AI revenues boost extends past Nvidia, given the company’s dramatic guidance hike was the standout surprise last season,” added Gilbert.



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Netwealth Group (ASX:NWL) rose after reporting that Funds Under Administration (FUA) exceeded $70 billion and increased by 26% for FY23.

FUA increased by $4.4 billion for the June quarter to $70.3 billion, comprising FUA Net Inflows of $3.2 billion and positive market movement of $1.2 billion.

The company also reported record custodial FUA Gross Inflows of $6.2 billion for the June quarter, an increase of $1.6 billion to pcp, and an increase of $2.5 billion to the March quarter.

Viva Energy (ASX:VVA) rose after providing an operational update and unaudited financial result for the half.

The Group delivered strong sales performances in H1, with overall volumes increasing by 11.5% to 7,604ML compared to the pcp.

Growth was led by Aviation as international travel recovered, and supported by robust demand particularly in Resources, Marine and Wholesale. Viva says unaudited Group EBITDA is expected to be approximately $360 million in H1.



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Mercury NZ (ASX:MCY) fell today after announcing changes to its Board. Adrian Littlewood and Mark Binns will be joining with effect from 1 August and 1 September 2023 respectively, and Patrick Strange has confirmed his intention to retire at the end of the 2023 Annual Shareholders’ Meeting.

Graincorp (ASX:GNC) also fell after acknowledging the Supreme Court of Victoria’s recent decision to allow Kevin Green to bring a representative proceeding against GrainCorp Oilseeds, a wholly owned subsidiary of GrainCorp, on behalf of himself and other Numurkah residents allegedly affected by emissions from GrainCorp’s Numurkah grain processing facility.

Graincorp says it strongly denies the allegations and intends to defend the proceeding vigorously.