Welcome to our live ASX coverage for Monday, February 2. Get ready for a busy day with a high volume of posts pre-market and regular updates throughout. We'll be wrapping things up around 2:00 pm AEST. Don't forget to refresh manually for the latest news, and let us know how we can improve (https://surveys.hotjar.com/58578fe2-a49e-4faf-9594-3a926a54cd03).
Market Highlights
Miners Take a Hit: The ASX 200 Materials Index tumbles 2.2%, bouncing from session lows of -4.5%. BHP, PLS, SFR, NEM, and PDN all experience significant declines, with BHP dropping 1.6% and PLS surging 1.6%.
Analysts Weigh In: Analysts remain optimistic about PLS Group, despite a 6.5% dip in stock price due to a Chinese lithium futures selloff. Goldman Sachs maintains a Sell rating with a target price of $3.00, while Macquarie keeps a Neutral stance with a target of $4.50.
ASX 200 Sectors in Focus: The ASX 200 takes a 0.54% dip, with base metals, iron ore, and lithium stocks leading the decline. S32, ZIM, MIN, and LTR are among the notable losers.
Gold Stocks Plunge: Large-cap gold stocks experience a sharp decline, with PNR, WGX, and VAU dropping over 10%.
Housing Market Update: Australian home values rise 0.8% in January, but growth is concentrated in cheaper segments. Supply remains tight, with listings 19% below last year and sales 2.7% higher.
Hot Chili Trading Halt: Hot Chili requests a trading halt pending an announcement of a proposed capital raising, which will be lifted by February 4 or upon the release of the announcement. Shares have rallied 15% year-to-date.
Graincorp Guidance Reset: Graincorp guides FY26 below market expectations due to oversupply and weak pricing. Underlying NPAT and EBITDA are expected to be significantly lower, with receivals and exports pointing to lower throughput.
PYC Therapeutics Equity Raise: PYC Therapeutics, an ASX-listed RNA therapy developer, plans a major equity raise to fund its pipeline targeting rare genetic diseases. The raise is expected to exceed $600 million.
Qoria Merger Plans: Qoria, a Perth-based monitoring software provider, is set for a merger with US tech company Aura, which will more than double its current share price and boost global expansion ambitions.
Trump's Fed Chair Pick: Donald Trump nominates Kevin Warsh to lead the Federal Reserve, causing markets to reprice US rate expectations. US equities fall, Treasury yields rise, and the US dollar strengthens.
Valuation Gap in Rio-Glencore Deal: Bloomberg reports that Rio Tinto and Glencore are seeking more time to bridge a valuation gap in their proposed tie-up, which would create the world's biggest miner. Copper strategy is the main driver.
Precious Metals Reversal: A parabolic rally in gold and silver is reversed as a surging US dollar and positioning unwind trigger the biggest precious-metals shock in decades. Gold and silver experience significant intraday declines.
Investor Optimism and Caution: Bank of America signals overbought conditions in global markets, with inflows favoring bonds, gold, and defensive sectors. US majors are cautious about Venezuela's reset, while OPEC+ holds production steady despite geopolitical tensions.
