Closing Bell: ASX bets on July rate cut as employment data lands
Markets pricing a 78pc chance of rate cut following labour data
Unemployment levels remained steady
ASX dips on broad weakness in tech, resources and healthcare stocks
The ASX ended up in negative territory this afternoon, but not by much (-0.09%). It wasn't the worst performance, considering how many headwinds global markets are dealing with at present.
There's the lingering threat of more tariffs from the US alongside the more pointed tension between China and America, the four-year saga of the war between Ukraine and Russia, and now the Israel-Iran conflict has turned up the heat even more.
In that context, losing just 0.48% over the last five trading days doesn't sound too bad.
Financials, and particularly the seven big banking stocks on our ASX200 Banks index, were the bright spot in today's subdued market.
They couldn't outweigh falls in info tech, materials, utilities and healthcare, but Commonwealth Bank (ASX:CBA) added 1.48%, NAB (ASX:NAB) 1% and Westpac (ASX:WBC) 1.7%.
The All Ords Gold index was an anchor for the ASX, shedding 1.79% and dragging the 200 Resources and Small Ords down with it.
Bets on for July rate cut as employment remains steady
The ABS released its Labour Force Australia survey today, revealing unemployment levels have largely remained steady in May.
Looking at the seasonally adjusted numbers, both the participation and underemployment rate fell slightly, down just 0.1 point, but the overall number of unemployed people fell by about 2,600 individuals, or 0.4%.
Analysts say that's about as expected, as the past 12 months of strong job uptake levels out to more average numbers.
"Looking ahead, the labour market's strong run over the past 12 months will slowly fade. Global uncertainty is clouding business decisions and prompting many firms to temper hiring plans," Oxford Economics Australia economist Kar Chong Low told the ABC.
Bloomberg's numbers say traders reckon this is a green light for another interest rate cut in the RBA's July meeting, with the market pricing a 78% chance.
Going by historical correlation, if the market sentiment stays that high right up until the meeting day, a cut is as close to certain as anything can be in this economy.
ASX SMALL CAP LEADERS
Today's best performing small cap stocks:
Security Name Last % Change Volume Market Cap
ATX Amplia Therapeutics 0.23 184% 60634193 $31,424,166
PRX Prodigy Gold NL 0.002 100% 3299814 $3,175,056
SFG Seafarms Group Ltd 0.002 100% 191757 $4,836,599
RPG Raptis Group Limited 0.16 67% 529504 $16,832,873
NHE Nobleheliumlimited 0.019 58% 5390085 $7,194,300
CCO The Calmer Co Int 0.003 50% 3661014 $6,022,707
FTC Fintech Chain Ltd 0.003 50% 167980 $1,301,539
ALM Alma Metals Ltd 0.004 33% 491861 $4,759,036
CTN Catalina Resources 0.004 33% 285724 $7,278,057
SRN Surefire Rescs NL 0.002 33% 5592144 $3,729,668
AHN Athena Resources 0.0065 30% 10001178 $11,329,785
HPC Thehydration 0.013 30% 2783892 $3,833,009
SCP Scalare Partners 0.13 30% 29521 $4,183,502
CP8 Canphosphateltd 0.04 29% 234815 $9,509,576
ALR Altairminerals 0.0025 25% 3717714 $8,593,488
AU1 The Agency Group Aus 0.02 25% 1341209 $7,033,225
OEL Otto Energy Limited 0.005 25% 1332565 $19,180,039
OKJ Oakajee Corp Ltd 0.02 25% 60000 $1,463,136
OMG OMG Group Limited 0.005 25% 1318028 $2,913,180
OVT Ovanti Limited 0.0025 25% 156524 $6,011,030
REZ Resourc & En Grp Ltd 0.02 25% 1124092 $10,746,226
ROG Red Sky Energy. 0.005 25% 2050000 $21,688,909
ELS Elsight Ltd 1.335 22% 1220702 $198,097,920
IFG Infocusgroup Hldltd 0.011 22% 12471483 $2,483,656
MQR Marquee Resource Ltd 0.011 22% 1914418 $5,024,723
Making news…
Amplia Therapeutics (ASX:ATX) has achieved a second complete response in its 55-patient Accent trial evaluating FAK inhibitor narmafotinib in combination with chemotherapy in advanced pancreatic cancer.
It's big news, as complete responses are very rare in patients with advanced pancreatic cancer. A complete response (CR) means a disappearance of all tumour lesions has been maintained for more than two months.
A seminal study demonstrating the effect of chemotherapies gemcitabine and Abraxane in advanced pancreatic cancer reported only one complete response out of 431 patients.
Peak Minerals (ASX:PUA) reckons it's sitting on a monazite-heavy mineral assemblage at Minta Est, part of the Minta rutile project in Cameroon.
The company's sampling has revealed monazite content levels of up to 73%, alongside 35% rutile and 28% zircon. Monazite is valued at about 3-fold rutile and zircon, offering a potentially lucrative opportunity. PUA also averaged 2.4% heavy mineral content over 47 drill holes covering 121 square kilometres, with every hole returning mineralisation.
Surefire Resources (ASX:SRN) has kicked off 5,000m of drilling at its Yidby gold project in WA, looking to expand the project's gold footprint.
The drill bit will also be testing new targets at the Fender and Marshall prospects and an extensive gold geochemical anomaly at the Money target, which will feel the drill's bite for the first time.
Hydralite, better known as The Hydration Pharmaceuticals Company (ASX:HPC) on the ASX raked in US$308k in unaudited sales for the month of May, up 34% on April and 18% on May last year.
It's a milestone for the company as the highest monthly total for the 2025 FY, underpinned by gross margins of 66.5%.
Resources & Energy Group (ASX:REZ) is poised to receive a cash injection of $1 million and 33 million QMines (ASX:QML) shares after getting the green light for the sale of the Mount Mackenzie gold project from due diligence teams.
The shares will be voluntarily be held in escrow for 12 months, offering REZ upside to whatever QML finds at Mount Mackenzie through its new share holding in the company.
ASX SMALL CAP LAGGARDS
Today's worst performing small cap stocks:
Security Name Last % Change Volume Market Cap
AFA ASF Group Limited 0.004 -33% 91846 $4,754,385
AXP AXP Energy Ltd 0.001 -33% 161237 $10,027,021
LNR Lanthanein Resources 0.001 -33% 5463026 $4,215,272
TKL Traka Resources 0.001 -33% 1320000 $3,188,685
AMI Aurelia Metals Ltd 0.2175 -29% 64448869 $516,234,655
BLU Blue Energy Limited 0.005 -29% 4258787 $12,956,815
VN8 Vonex Limited. 0.018 -28% 591400 $18,815,088
EEL Enrg Elements Ltd 0.0015 -25% 40307965 $6,507,557
BAS Bass Oil Ltd 0.023 -23% 4933335 $8,714,251
PGY Pilot Energy Ltd 0.006 -20% 10175643 $16,189,950
FAU First Au Ltd 0.004 -20% 2592000 $10,359,966
LU7 Lithium Universe Ltd 0.008 -20% 10180704 $7,859,796
MMR Mec Resources 0.004 -20% 271460 $9,248,829
RLG Roolife Group Ltd 0.004 -20% 142376 $7,963,906
NUC Nuchev Limited 0.185 -18% 68794 $32,926,343
PNT Panthermetalsltd 0.014 -18% 3023033 $5,115,377
AJL AJ Lucas Group 0.005 -17% 3000000 $8,254,378
DGR DGR Global Ltd 0.005 -17% 598401 $6,262,176
GLL Galilee Energy Ltd 0.005 -17% 2818092 $4,243,157
OLI Oliver'S Real Food 0.005 -17% 279999 $3,244,392
PVT Pivotal Metals Ltd 0.01 -17% 13339185 $10,886,711
LMG Latrobe Magnesium 0.008 -16% 4544607 $24,952,605
MEK Meeka Metals Limited 0.1475 -16% 49351910 $440,248,405
AVD Avada Group Limited 0.11 -15% 746 $11,041,553
CR3 Core Energy Minerals 0.011 -15% 1347637 $5,133,013
IN CASE YOU MISSED IT
ADX Energy (ASX:ADX) has progressed its shallow gas ambitions in Austria with the maturing of seven prospects to drill-ready status. The prospects hold mean prospective resources totalling 29 billion cubic feet of gas.
EZZ Life Science (ASX:EZZ) has officially entered the US with four new supplements under its new brand, EZZDAY.
TRADING HALTS
African Gold Ltd (ASX:A1G) – resource upgrade
Alligator Energy Ltd (ASX:AGE) – cap raise
Estrella Resources Ltd (ASX:ESR) – exploration update
Microba Life Sciences Ltd (ASX:MAP) – cap raise
Prominence Energy Ltd (ASX:PRM) – acquisition & cap raise
Universal Biosensors Inc (ASX:UBI) – cap raise
Magellan Asset Management (AASF) – operational issues
Savana US Small Caps Active ETF (ASX:SVNP) – IT/maker disruptions
At Stockhead, we tell it like it is. While ADX Energy and EZZ Life Science are a Stockhead advertisers, they did not sponsor this article.
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