Evening Wrap: ASX 200 rips to all-time high, powered by tech and health stocks amid China optimism

The S&P/ASX 200 closed 59.9 points higher, up 0.70%.

In a nutshell:

• The ASX 200 powered to a new record of 8630

• Rally was widespread, with 10 of 11 sectors in the green

• Chinese Q2 GDP surprised to the upside, showing resilience

Let's dive in.

ASX 200 Session Chart

ASX 200 closed up 59.9 points (Source: Market Index)

Markets

• The S&P 200 closed at an all-time high of 8,630.60, gaining 0.7% as investors shrugged off Trump's latest tariff threats and embraced positive Chinese economic data

• Tech stocks led the charge, with the sector up 2.2% sparked by Nvidia's surprise announcement to resume AI chip sales to China. Life360 up 8%, WiseTech up 1.8%, and Xero up 1.2%

• The healthcare sector also rallied 2%, with CSL jumping 3.8% and Pro Medicus up 2.4%

• The previously hot materials sector underperformed, with iron ore miners struggling as Chinese home prices fell for the 24th consecutive month. BHP down 0.9%, Rio Tinto down 1.3%, and Fortescue down 0.7%

• All big four banks posted gains despite ongoing rate uncertainty, with the financial sector benefiting from the broader risk-on sentiment

• The payment sector took a hit, with Tyro Payments down 2.7% following the RBA's proposal to ban credit and debit card surcharges, though the company's CEO welcomed the reforms

Economy

• Chinese growth beat expectations: China's Q2 GDP expanded 5.2% year-on-year, surpassing forecasts of 5.1% and demonstrating economic resilience despite ongoing trade tensions with the US

• Property market concerns: Chinese home prices in major cities fell 3.2% year-on-year in June, marking the 24th consecutive month of decline and weighing on Australian iron ore demand expectations

• RBA payment system overhaul: The Reserve Bank proposed sweeping reforms to ban card surcharges on all eftpos, Mastercard and Visa transactions, potentially saving consumers and businesses $1.2 billion annually

• Consumer sentiment mixed: Westpac's Consumer Sentiment Index rose 0.6% to 93.1 in July, though the RBA's decision to hold rates steady dampened what could have been a stronger result

Interesting Movers

Trading higher

• +26.26% Dateline Resources (DTR) – Media coverage in the Sydney Morning Herald

• +21.05% Elsight (ELS) – Ongoing momentum, exposed to defence trade

• +15.79% MTM Critical Metals (MTM) – Defence trade

• +14.81% Droneshield (DRO) – Defence trade

• +12.35% Novonix (NVX) – No news

• +11.04% Electro Optic Systems Holdings Ltd (EOS) – Defence trade

• +7.97% Life 360 (360) – Tech rally

• +7.85% Paladin Energy (PDN) – Broker note, upgraded target price

• +7.14% Silver Mines (SVL) – Bowdens Silver Project update

• +6.98% Appen (APX) – Tech rally

Trading lower

• -5.33% Cromwell Property Group (CMW) – Barton Development Project update

• -5.00% Kingsgate Consolidated (KCN) – Revised production update

• -4.73% Mayne Pharma Group (MYX) – No news

• -4.55% Pilbara Minerals (PLS) – Rally tiring

• -3.28% Syrah Resources (SYR) – No news

Broker Notes

Australian Finance Group (AFG)

• Retained at Outperform at Macquarie; Price Target: $2.20 from $1.80

Ai-Media Technologies (AIM)

• Retained at Buy at Morgans; Price Target: $0.80 from $1.00

Aurelia Metals (AMI)

• Retained at Buy at Shaw and Partners; Price Target: $0.50

ANZ Group Holdings (ANZ)

• Retained at Equal weight at Morgan Stanley; Price Target: $26.50

Abacus Storage King (ASK)

• Retained at Buy at Citi; Price Target: $1.73 from $1.40

Atturra (ATA)

• Retained at Accumulate at Morgans; Price Target: $0.90 from $1.00

Bannerman Energy (BMN)

• Retained at Buy at Shaw and Partners; Price Target: $4.70

CAR Group (CAR)

• Retained at Accumulate at Morgans; Price Target: $40.80 from $40.70

Capstone Copper Corp. (CSC)

• Retained at Outperform at Macquarie; Price Target: $13.30 from $11.60

Data3 (DTL)

• Retained at Hold at Morgans; Price Target: $7.50 from $8.65

Hansen Technologies (HSN)

• Retained at Buy at Goldman Sachs; Price Target: $6.20 from $6.10

• Retained at Buy at Moelis Australia; Price Target: $6.60 from $6.00

• Retained at Overweight at Morgan Stanley; Price Target: $6.50

• Retained at Buy at Ord Minnett; Price Target: $7.00 from $6.30

• Retained at Buy at Shaw and Partners; Price Target: $7.30

• Retained at Buy at UBS; Price Target: $7.00 from $6.55

HUB24 (HUB)

• Retained at Neutral at Citi; Price Target: $89.80

Jumbo Interactive (JIN)

• Retained at Accumulate at Morgans; Price Target: $11.30 from $11.20

Light & Wonder Inc. (LNW)

• Retained at Buy at Morgans; Price Target: $190.00 from $200.00

Lotus Resources (LOT)

• Retained at Speculative buy at Bell Potter; Price Target: $0.35

• Retained at Speculative buy at Ord Minnett; Price Target: $0.36 from $0.37

Lynas Rare Earths (LYC)

• Retained at Buy at UBS; Price Target: $10.40

Macquarie Technology Group (MAQ)

• Retained at Buy at Canaccord Genuity; Price Target: $107.00

• Retained at Positive at E&P; Price Target: $125.00 from $110.18

• Retained at Overweight at Morgan Stanley; Price Target: $102.00 from $100.00

• Retained at Outperform at RBC Capital Markets; Price Target: $95.00 from $105.00

Minerals 260 (MI6)

• Retained at Speculative buy at Bell Potter; Price Target: $0.28

Ora Banda Mining (OBM)

• Retained at Buy at Canaccord Genuity; Price Target: $1.05 from $1.15

Paladin Energy (PDN)

• Retained at Buy at Bell Potter; Price Target: $9.20 from $6.50

Qantas Airways (QAN)

• Retained at Neutral at Macquarie; Price Target: $10.40 from $10.10

REA Group (REA)

• Retained at Hold at Morgans; Price Target: $250.00

Rio Tinto (RIO)

• Retained at Neutral at UBS; Price Target: $120.00

South32 (S32)

• Upgraded to Buy from Hold at Jefferies; Price Target: $3.40

• Retained at Neutral at JPMorgan; Price Target: $3.00 from $3.30

• Retained at Outperform at Macquarie; Price Target: $3.40 from $3.60

• Retained at Overweight at Morgan Stanley; Price Target: $3.05

• Retained at Buy at Ord Minnett; Price Target: $3.90 from $4.10

• Retained at Outperform at RBC Capital Markets; Price Target: $3.70 from $3.80

• Retained at Neutral at UBS; Price Target: $3.20

SEEK (SEK)

• Retained at Accumulate at Morgans; Price Target: $27.20

Sandfire Resources (SFR)

• Retained at Neutral at Macquarie; Price Target: $12.00 from $11.50

Superloop (SLC)

• Retained at Accumulate at Morgans; Price Target: $3.50 from $3.00

Tabcorp Holdings (TAH)

• Downgraded to Hold from Add at Morgans; Price Target: $0.75

The Lottery Corporation (TLC)

• Retained at Hold at Morgans; Price Target: $5.70 from $5.50

Telstra Group (TLS)

• Upgraded to Hold from Sell at Morgans; Price Target: $4.70 from $4.00

Telix Pharmaceuticals (TLX)

• Initiated at Overweight at JPMorgan; Price Target: $31.00

TPG Telecom (TPG)

• Retained at Hold at Morgans; Price Target: $5.40 from $5.00

Woolworths Group (WOW)

• Upgraded to Outperform from Hold at CLSA; Price Target: $34.50 from $32.80

Scans