Evening Wrap: ASX 200 bounces, ResMed misses estimates, Mesoblast shares sink 57%

The Index finished the week down 1.06%, the RBA downgrades its near-term forecasts but expects inflation to fall to 2.75% by the December quarter 2025, Mesoblast shares tank more than 50% after the US FDA delays its stem cell approval and City Chic shares rally more than 20% as it plans to exit Europe.

Let's dive in.

ASX 200 Session Chart

ASX 200 bounces intraday to finish in positive territory (Source: Market Index)

Markets

Happy Friday! A little bit of a short one today.

The ASX 200 finished the volatile week on a more positive note, rallying in the last hour of trade to finish the session in positive territory. The session was led by the usual suspects (aka those that have been outperforming in recent weeks) including Tech, Energy, Discretionary and Materials. The market is still working its way through the tail end of US earning season, which has been pretty positive (albeit a relatively low bar). One of the near-term headwinds for markets is the resurgence in bond yields. The US 10-year yield trading close to 4.2%, the highest since November 2007 and the yield curve (10-year minus 2-year) reaching the steepest level since May. Friday finished on an encouraging note, so let's see if the market can stabilise more next week.

From a technical perspective, it's found a little bounce off the previous trendline.

ASX 200 daily chart (Source: TradingView)

Economy

A few highlights from the RBA’s Statement of Monetary Policy: 

• Downgraded near-term GDP growth forecasts by 0.25%

• Expects headline inflation to fall from 6.0% in 2Q23 to 2.75% in 4Q25 

• Repeated tightening bias and dependency on trends in household spending, the outlook for inflation and the labour market

Latest news

Interesting news and movers

Trading higher

• +28.1% City Chic Collective (CCX) - Sale of Evans

• +22.7% Azure Minerals (AZS)

• +10.5% Latin Resources (LRS)

• +7.9% Ansarada (AND)

• +7.0% Australian Strategic Metals (ASM) – Continuation rally

• +7.0% IVE Group (IGL) – Initiated Buy by UBS

• +5.4% Myer (MYR)

• +4.7% Dicker Data (DDR) – Trading update

Trading lower

• -56.9% Mesoblast (MSB) – FDA response to licence

• -9.3% Resmed (RMD) – Earnings

• -8.8% Argosy Minerals (AGY)

• -5.8% Block (SQ2) – Earnings 

• -5.4% EML Payments (EML)

• -4.6% Vulcan Energy (VUL)

• -2.7% Lindian Resources (LIN) – Maiden MRE (Thu)

Broker notes

Brokers notes are unavailable today.

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