Episode 26: Fed fuels optimism on soft landing

Fed Chair Powell and Lower inflation data fueled optimism of September rate cuts, sparking a shift back into small-caps Incitec Pivot – Shares dropped 1.2% after ending talks with Indonesia’s PT Pupuk Kalimantan Timur for its fertilisers business sale. The company will continue to manage its Dyno Nobel explosives and fertilisers businesses separately and plans a $900 million stock buyback. BHP – BHP will suspend nickel mining, risking thousands of jobs in Western Australia and causing tension with the Albanese government. The decision, due to a $450 million expected loss from a global nickel oversupply, affects about 2000 workers, with 1600 jobs guaranteed and 400 retained in hopes of a market recovery by 2027. ANZ – ANZ is investigating workplace misconduct and inappropriate trading in its markets division, with the corporate regulator examining potential manipulation of government bond prices. Uranium Stocks – Uranium stocks surged after Kazakhstan announced higher extraction taxes for 2025-2026, reducing supply growth from Kazatomprom. Paladin Energy, Boss Energy, and Deep Yellow saw shares rise 4-6%, driven by positive long-term prospects for uranium due to energy security and decarbonisation efforts. Trade of the Week The AI rally (or bubble, whatever your opinion) has dominated fund flows, and given a sense of optimism, despite the rest of the market underperforming. But, as markets involve human beings and their emotional sentiment, its inevitable the novelty wears off the initial AI winners and eyes turn to “what’s next?”