Evening Wrap: ASX 200 powers ahead, miners rise on iron ore rally, banks and property stocks also higher

The S&P/ASX 200 closed 50.6 points higher, up 0.59%.

In a nutshell:

• ASX 200 enjoys best session in more than a week, up 51 points

• Materials lead the charge on iron ore rally, gold stocks

• Seven of 11 sectors closed higher; industrials, property, retail and banks all climb

Let's dive in.

ASX 200 Session Chart

ASX 200 closed up 50.6 points (Source: Market Index)

Markets

• The ASX 200 rallied to within spitting distance of its all-time high, following bullish leads from Wall Street

• Rally recouped nearly all of yesterday's losses - which was the worst session since 5 May

• Materials sector (+1.24%) led the charge on China optimism: BHP, RIO, FMG all up 1-2% on a stronger iron ore price (futures up 2%) and healthy Chinese construction data

• Gold miners posted strong gains: Evolution up 3.6%, Newmont and Perseus both gaining 3.2% as gold traded US$30 higher at US$3,330 per ounce

• Property stocks bounced back following yesterday's RBA decision: Charter Hall up 1.5%, GPT Group up 1.4%, and Scentre Group up 1.1%

• Banks extended gains from previous session, with CBA and ANZ up 0.8% each, NAB added 1.2%.

Economy

• Data from the China Construction Machinery Association showed Chinese domestic excavator sales, which usually ramp up as builders prepare for projects, climbed nearly 23% from a year earlier during the January-June period.

• China inflation turnaround: Consumer price index rose 0.1% year-on-year in June, reversing a 0.1% decline the month before and snapping four months of consumer deflation

• Trump tariff escalation: US President confirmed 50% copper tariffs effective August 1, adding to trade tensions, while also announcing 50% tariffs on Brazil and various rates for other countries

Interesting Movers

Trading higher

• +13.13% Platinum Asset Management (PTM) – Merger with L1 Capital, UBS ups target price

• +10.48% Synlait Milk (SM1) – No news

• +9.28% Lifestyle Communities (LIC) – Bouncing from selloff

• +8.7% Meteoric Resources (MEI) – No news

• +7.46% Praemium Ltd (PPS) – Announcement re Bell Potter partnership

• +6.67% Liontown Resources (LTR) – News article - hungry for M&A despite low prices (West Australian)

• +6.17% Predictive Discovery (PDI) – No news

Trading lower

• -33.33% Energy Resources of Australia (ERA) – No news

• -15.11% Imricor Medical Systems (IMR) – Regulatory and business update

• -9.84% MTM Critical Metals (MTM) – No news

• -9.15% Serko (SKO) – Substantial holdings changes

• -6.45% Coronado Global Resources (CRN) –No news

• -5.97% Bannerman Energy (BMN) – No news

• -5.10% Jumbo Interactive (JIN) – Broker note; downgrade and reduced target price

Broker Notes

BHP Group (BHP)

• Retained at Outperform at Macquarie; Price Target: $40.00 from $42.00

Breville Group (BRG)

• Retained at Neutral at Citi; Price Target: $32.10 from $38.20

Commonwealth Bank of Australia (CBA)

• Retained at Underperform at Macquarie; Price Target: $105.00

CSL (CSL)

• Retained at Buy at Morgans; Price Target: $303.00 from $329.26

Downer EDI (DOW)

• Retained at Outperform at RBC Capital Markets; Price Target: $7.00 from $6.75

The Environmental Group (EGL)

• Retained at Buy at Bell Potter; Price Target: $0.40 from $0.38

Evolution Mining (EVN)

• Upgraded to Buy from Hold at Canaccord Genuity; Price Target: $8.80 from $7.75

Fortescue (FMG)

• Retained at Neutral at Macquarie; Price Target: $15.00

GQG Partners Inc. (GQG)

• Retained at Buy at UBS; Price Target: $2.75 from $0.85

Jumbo Interactive (JIN)

• Downgraded to Neutral from Buy at Citi; Price Target: $11.30 from $14.60

Lifestyle Communities (LIC)

• Retained at Hold at Bell Potter; Price Target: $5.00 from $8.55

• Retained at Hold at Canaccord Genuity; Price Target: $5.30 from $8.99

• Downgraded to Neutral from Buy at Citi; Price Target: $4.50 from $9.00

• Retained at Buy at Moelis Australia; Price Target: $11.60 from $7.90

• Downgraded to Hold from Accumulate at Ord Minnett; Price Target: $5.35 from $9.83

Lovisa Holdings (LOV)

• Retained at Overweight at Morgan Stanley; Price Target: $35.00 from $31.50

Mineral Resources (MIN)

• Retained at Neutral at Macquarie; Price Target: $22.00

Monadelphous Group (MND)

• Retained at Sector perform at RBC Capital Markets; Price Target: $17.75 from $15.75

Medibank Private (MPL)

• Retained at Neutral at Citi; Price Target: $5.05 from $5.00

NIB Holdings (NHF)

• Retained at Neutral at Citi; Price Target: $6.95 from $6.90

Netwealth Group (NWL)

• Retained at Neutral at Citi; Price Target: $33.65

Ora Banda Mining (OBM)

• Upgraded to Buy from Hold at Canaccord Genuity; Price Target: $1.15 from $1.20

Oohmedia (OML)

• Downgraded to Hold from Buy at Jefferies; Price Target: $1.80 from $1.87

Polymetals Resources (POL)

• Retained at Speculative buy at Ord Minnett; Price Target: $1.30 from $1.35

Platinum Asset Management (PTM)

• Upgraded to Buy from Hold at Bell Potter; Price Target: $0.60 from $0.49

• Retained at Neutral at Jarden; Price Target: $0.53 from $0.37

• Retained at Neutral at UBS; Price Target: $0.53 from $0.47

PYC Therapeutics (PYC)

• Retained at Speculative buy at Bell Potter; Price Target: $2.30

Qantas Airways (QAN)

• Downgraded to Neutral from Overweight at Jarden; Price Target: $10.20 from $10.50

QBE Insurance Group (QBE)

• Retained at Buy at Citi; Price Target: $26.10 from $23.30

Rio Tinto (RIO)

• Retained at Neutral at Macquarie; Price Target: $105.00 from $115.00

Reliance Worldwide Corporation (RWC)

• Retained at Buy at Citi; Price Target: $5.25

South32 (S32)

• Retained at Outperform at Macquarie; Price Target: $3.60 from $4.50

Service Stream (SSM)

• Retained at Outperform at RBC Capital Markets; Price Target: $2.10 from $2.00

Temple & Webster Group (TPW)

• Retained at Overweight at Morgan Stanley; Price Target: $28.00

Tuas (TUA)

• Retained at Overweight at Morgan Stanley; Price Target: $7.00

Virgin Australia Holdings (VGN)

• Initiated at Buy at Ord Minnett; Price Target: $3.65

Ventia Services Group (VNT)

• Retained at Outperform at RBC Capital Markets; Price Target: $5.50 from $4.75

West African Resources (WAF)

• Retained at Speculative buy at Argonaut Securities; Price Target: $5.60

• Retained at Buy at Euroz Hartleys; Price Target: $4.15 from $4.00

• Retained at Outperform at Macquarie; Price Target: $3.30 from $2.80

Scans