• China’s expected stimulus package ignited energy markets and risk assets
  • The ASX lifted 1% on Friday, and over 2% for the week
  • Energy stocks surged as crude prices lifted the most in 6 weeks


The ASX 200 tracked Wall Street and climbed 1.15% on Friday with all 11 sectors in the green. For the week, the index closed over 2% higher.

It’s been a 5-day winning streak for the ASX, its longest winning streak since April.

Energy stocks surged as AGL Energy (ASX:AGL) said that its profit will double next financial year.

The energy sector also got a boost after oil prices jumped by 4% overnight, the most in 6 weeks, on expectations of more stimulus in China.

“Oil might find some support as energy traders expect China’s recovery to only improve, and as Wall Street doubts Fed Chair Powell will be able to deliver on his hawkish threats,” said Oanda analyst, Edward Moya.

Earlier, China had loosened its monetary policy and is reportedly mulling a big stimulus package to prop up key sectors.

The news has boosted China-sensitive assets like iron ore, along with the AUD/USD cross which is now creeping back up toward 69c.

Tech stocks also registered gains today, tracking movements on the Nasdaq overnight.

Elsewhere, Chinese social media platform TikTok says it will invest billions in Southeast Asia. TikTok currently employs more than 8,000 people in the region.

Yen meanwhile slipped as the Bank of Japan (BoJ) maintained its ultra-low interest rates, while forecasting that inflation in the country will slow down later this year.

And we’ll end the week with a bit of positive news.

Goldman Sachs’ US team says the outlook for IPO listings has vastly improved, with the GS IPO Issuance Barometer jumping to 93, which is the highest level since March 2022.



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AGL Energy (ASX:AGL) surged over 11% after the company said that its net profit will at least double on the back of higher higher wholesale power prices.

AGL’s full year net profit guidance has now increased to $580m and $780m, up from $255m~ $285m previously announced. But AGL said it will cut dividends as it looks to invest multi billion dollars in renewable energy.

De Grey Mining (ASX:DEG) climbed 6% after responding to an article in the business section of The West Australian on June 16 entitled “De Grey sitting on $3B extra”. The article had reported about the company’s increase of its Mineral Resource Estimate by 1.1Mozs of gold.

DEG says the article was not initiated by De Grey, nor was the company asked for any comments.

“De Grey has not announced any forecast financial information regarding this resource upgrade. Until the DFS is released (scheduled in the 3rd quarter of the 2023 calendar year) no other figures should be relied on,” the response said.

Whitehaven Coal (ASX:WHC) rose 7% as it conducted share buybacks in the open market.



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