At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) has fought back from a tough start and is pushing higher. The benchmark index is currently up 0.45% to 6,173.2 points.

Here’s what is happening on the market today:

Big four banks out of form.

The big four banks look to have run out of steam on Wednesday. All four banks are trading lower at lunch and are acting as a drag on proceedings. Investors may be taking profit after some incredible gains over the last couple of weeks. The worst performer in the group is the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price with a 1% decline. This morning Goldman Sachs downgraded its shares to a neutral rating from buy on valuation grounds.

Harvey Norman sales update.

The Harvey Norman Holdings Limited (ASX: HVN) share price is charging higher after the release of a sales update this morning. That update revealed that its Australian stores have performed very strongly during the pandemic. As of 31 May 2020, the Harvey Norman Australian franchise network had delivered a 17.5% increase in sales in the second half. Things weren’t quite as positive overseas due to forced closures. In addition to the sales update, the board declared a special dividend of 6 cents per share. This will be paid to shareholders later this month.

Gold miners race higher.

Australia’s leading gold miners are charging higher today after the gold price rebounded overnight. Traders were buying the precious metal ahead of the U.S. Federal Reserve’s June meeting this week. The central bank is expected to announce further stimulus measures which are likely to be supportive of the gold price. Gold Road Resources Ltd (ASX: GOR) and Saracen Mineral Holdings Limited (ASX: SAR) shares have been particularly positive performers today.

Best and worst ASX 200 performers.

The best performer on the ASX 200 at lunch is the Saracen share price with a 10% gain. This follows the rebound in the gold price. The worst performer is the Worley Ltd (ASX: WOR) share price with a 5% decline. Investors have been selling the engineering company’s shares following the release of its investor day update this morning.

More reading

• Does the ASX 200 just follow the US markets?
• Are Aussies still withdrawing cash like crazy?
• Why Flight Centre, Smartgroup, Woodside, & Worley shares are dropping lower
• Why CSL, Harvey Norman, IPH, & Saracen shares are charging higher
• ASX winners and losers from last week’s rally

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A few months ago Aussies were rushing to withdraw cash from ASX banks like crazy.

In the second half of March 2020 people were withdrawing large amounts of cash, sometimes millions of dollars at a time. COVID-19 was causing investors and the general public to freak out.

It was reported that banks, such as Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) had to use more security vans to deliver funds to branches so that people could withdraw cash.

What’s the situation now with Australians withdrawing cash?

The Reserve Bank of Australia (RBA) releases a monthly update about the total value of ATM cash withdrawals in the country.

According to the stats, ATM cash withdrawals dropped from $9.24 billion in March 2020 to $6.41 billion in April 2020. A drop of just over 30%.

I think the fall can probably attributed to several different things. Some people had already withdrawn the cash they needed. People just weren’t spending as much money in April. Aussies were being encouraged to use their card to pay for things rather than cash, particularly with the contactless function.

Paying by card is usually more convenient for consumers. Physical cash is fairly easy to lose. I’d much rather have cash in the bank earning (a little bit of) interest rather than have physical cash these days.

Tyro Payments Ltd (ASX: TYR) is one of the ASX businesses trying to help change the retail environment to become more digital.

It’s clear that Australian confidence is returning. Time will tell whether that confidence is well placed.

Since 23 March 2020 the CBA share price has risen by 33%, the Westpac share price has gone up by 41%, the ANZ share price has jumped 49% and the NAB share price has risen by 47.5%. ASX banks could rise even further from here. They’re still down significantly from their previous prices. But I think there could be even better opportunities out there. 

More reading

• ASX 200 up 0.45%: Harvey Norman declares special dividend, gold miners race higher
• How to be like Warren Buffett and not lose money investing in ASX 200 shares
• Afterpay share price overbought says analyst
• Why the CBA share price is lagging its big four cohorts
• The smartest ASX shares to invest $10,000 in right now

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tyro Payments. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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