Market Snapshot
The ASX 200 lifted 0.4% to 9,032, supported by gains in the big banks and tech stocks as investors looked past soft Chinese data and welcomed signs of easing U.S.-China tensions.
Gold and critical minerals miners dragged on the index with Newmont, Evolution and Iluka ended the day lower, ahead of PM Albanese’s meeting with President Donald Trump, where critical minerals are expected to feature. China’s GDP grew 4.8%, matching forecasts, while the AUD edged up to US65¢ on improved risk sentiment.
Gold recorded its biggest weekly gain since 2020
Gold prices surged 7% last week marking their strongest weekly gain since 2020 as the precious metal went “parabolic” amid rate cut bets, U.S.-China trade tensions and banking concerns.
Prices briefly touched US$4,380/oz before easing to US$4,260, with analysts calling it a “perfect storm” for gold driven by central bank buying, a weaker USD and safe haven demand. Major banks including Goldman Sachs and JPMorgan lifted their long term price targets for gold toward US$6,000/oz.
Zipping ahead in the U.S.
The result:
Zip climbed 4.3% after the BNPL group posted a strong September quarter, with transaction volume up 38.7% to $3.9 billion and U.S. growth leading the charge. Revenue in its U.S. business surged 51% prompting management to lift its full-year target from above 35% to above 40%. Group income also rose 33% and cash earnings nearly doubled to $62.8 million.
The company also doubled its share buyback limit to $100 million, signalling growing confidence in its balance sheet and profitability.
Why it matters:
The result shows Zip’s U.S. strategy is gaining traction after years of restructuring. Analysts called it a “positive surprise” given the seasonally soft quarter, with rising margins and cost discipline showing that profitability, not just growth, is now driving the business.
What’s next:
Investors will be watching whether Zip’s U.S. momentum carries through the December quarter and if its long-mooted Nasdaq dual listing finally moves ahead.
Check out Zip Co (ASX: ZIP) on Superhero.
Bapcor’s hard brake on profits
The result:
Bapcor tanked 17.7% to $2.61 after the automotive parts group unveiled a major operational overhaul and warned of a $12 million first-half earnings hit. The company said its tools and equipment division “requires immediate attention” after uncovering poor practices during an internal review.
Why it matters to investors:
The update showed a company still cleaning up after years of weak performance. Management pointed to margin pressures, stock issues and system problems that will hurt short term results. But there’s a longer term upside – Bapcor expects its cost cuts and supply chain overhaul to save about $20 million a year by FY26, even if the next few months are bumpy.
CEO Angus McKay acknowledged the frustration among investors, admitting that Bapcor has long been better at buying businesses than integrating them, and said the company is now focused on rebuilding performance and trust.
What’s next:
Investors will be watching whether management can translate this reset into results, with cost savings and culture reform set to be the key test for FY26 earnings momentum.
Check out Bapcor (ASX: BAP) on Superhero.
