ASX gains for fifth straight day on resources; United Malt dives on cost drain

ASX up for a fifth straight session on gains led by energy. Lithium miners rally, United Malt plunges on costs drain, IAG hit with class action and Mike Baird joins Future Generation.

Rates, housing and retail are key areas of focus for equity investors locally this week. Picture: Nikki Short

Welcome to the Trading Day blog for Monday, August 1. The Australian sharemarket climbs for a fifth consecutive session on gains led by energy and health care. It comes as United Malt dives on costs drain and Genex rises after Scott Farquhar bid rejection.

The S&P/ASX 200 index was up by 0.7 per cent to 6993.00 with all sectors bar consumer discretionary and tech higher.

On Wall Street, the Dow Jones Industrial Average and S&P 500 closed more than 1 per cent stronger on Friday – marking their strongest monthly gains since November 2020. The technology-focused Nasdaq Composite Index’s 2 per cent gain on Friday made July its best month since April 2020.

US 10-year bond yields ended lower at 2.66 per cent, but US 2-year yields rose to 2.89 per cent.

Oil prices are higher ahead of the OPEC+ producer group meeting on Wednesday on lifting supply. The Brent crude price rose 2.7 per cent to $US110.01 a barrel while the US Nymex crude is 2.3 per cent up at $US96.42 a barrel.

Iron ore futures price gained 7.4 per cent to $US115.48 a tonne.

The Aussie dollar is was near US69.85 cents at the US close.