The ASX 200 gave up yesterday’s gain and more, dropping another 108 points to 8,497 (1.3%) as the rout continues. Resources bore the brunt of the selling as inflation fears stoked higher rates and tore through commodities. BHP fell 2.3% and RIO off 1.5% with gold miners under pressure again, EVN down 4.9% and NEM falling 4.5%. Oil and gas firmed, but uranium stocks eased back, PDN down 4.5%. Lithium stocks found some friends with PLS up 1.9%. Industrials were also weak across the board as TLS fell 1.1% and REA dipped 2.0%. Tech stocks couldn’t shrug off the negativity despite good results from CAT and broker upgrades to TNE. Healthcare drifted lower.
Banks were hit hard as one broker said conditions were tough, WBC fell 2.4% with ANZ off 2.1% and the Big Bank Basket falling to $269.72 (0.8%). Other financials also under pressure, MQG fell 2.0% and NWL and HUB dropped. Insurers also saw sellers, QBE off 1.0% and IAG down 0.4%. REITs fell as bond yields rose again. GMG down 2.1% and CHC falling 3.3%.
In corporate news, WJL tumbled 11.2% after earnings came in worse than expected and guidance was moved down. JHX fell 0.9% after lacklustre results too. EOS tumbled 10.3% as it raised funds at 800c and FLT fell 3.6% after a US$5m US strategic acquisition.
On the economic front, total wages and salaries paid by employers rose 1.4% to a record $110.6bn in March. National Australia Bank says weekly consumer spending patterns have stabilised with travel especially weak.
Asian markets fell, Japan down 1.6%, Hong Kong down 0.7%, China flat. Kospi down 2.8%.
US futures mixed with Dow down 31, Nasdaq up 32. European futures opening around 1% lower. Oil down slightly.
Nvidia tonight in the US. European futures opening around 0.6% lower.
HIGHLIGHTS
Winners: CAT, EIQ, TNE, SMR, SGH, DBI,
Losers: TUA, WIA, EOS, 4DX, PDI, GYG
Positive Sectors: Supermarkets. Lithium.
Negative Sectors: Banks. Iron ore. REITs. Gold miners.
ASX 200 Hi 8578 Lo 8485
Big Bank Basket: Falls to $269.72 (-0.8%)
All-Tech Index: Down 0.8%
Gold: Falls to $6299
Brent Crude down 0.3%
Bitcoin: Steady at US$77112
10-year yields: Higher at 5.08%
AUD: Falls to 71.00c.
MARKET MOVERS
CAT +17.7% no dead bounce on results.
GNP +2.2% cap raise for acquisition.
TNE +7.3% brokers upgrade.
EIQ +12.6% good pop higher.
NYR +8.1% Xolatryp enhances Anthracycline anti- tumour efficacy.
TUA -16.9% under pressure again.
EOS -10.3% placement at 800c.
4DX -10.1% sellers back.
PDI -9.0% gold falls.
WIA -14.0% raising $92m to advance Kokoseb project.
WEB -6.3% results.
WJL -11.2% results.
GBM -12.5% high grade extends east at Twin Hills.
Yesterday’s Hero: NTU -10.7%
Speculative Stock of the Day: HYD +% 127%
ECONOMIC AND OTHER NEWS
Nvidia tomorrow morning.
CBA warns that Australia is navigating a ‘dangerous’ minefield.
Arsenal win first Premiership in 22 years.
Over 47,000 Samsung Electronics workers set to strike as wage talks break down. Bonus disputes remained the core issue in labor negotiations.
Putin arrives in China with plenty of gas talk.
Google revamps search engine. Releases new smart glasses.
Goldman Sachs to lead SpaceX IPO.
UK inflation eases to 2.8% but expected to be short lived.
Trump’s ‘worst’ Republican critic loses most expensive House primary ever.
Trump and sons granted ‘forever’ immunity from existing tax audits.
US to cut troops in Europe to lowest level since before Ukraine invasion.
Big Four post more job ads for AI specialists than auditors.

And finally…..

Clarence

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