The ASX 200 eased back 34 points today to 8658 (0.4%) in a quiet session, with US and UK markets closed last night. The banking sector was modestly lower, with NAB falling 0.8% and some more profit taking in MQG down1.6%. The Big Bank Basket $274.56 (-0.3%). Financials generally were under pressure as ASX revealed a further blowout in capex, and the shares fell hard, down 13.2%. Elsewhere, industrials were generally weaker across the board: TLS fell 0.9%, REA down 0.7%, and in the health care sector, CSL continued to push lower. REITs also eased back with an update from GMG, disappointing slightly. WES rose slightly, but generally the markets were on hold ahead of more news coming out of the Gulf.

Tech stocks were barely changed with XRO down 0.1%, WTC off 2.6% and the All-Tech Index off 0.4%.

Resources were mixed. Iron ore miners pushed higher, and S32 had a good day, up 4.8%, with a little interest in lithium stocks, but gold miners eased back as bullion prices fell on a lack of progress in the peace negotiations. NEM off 2.2% Coal stocks gave up some of the gains from yesterday and STO fell 0.9% despite encouraging news from an investor day. Uranium stocks were also easier, with PDN down 3.4%.

In corporate news, KGN ran hard on a positive trading update, and MIN also had a good day. In other news, IFM has rejected the independent valuation of ALX, with directors urging shareholders to reject the takeover bid.

In economic news, the ANZ-Roy Morgan Consumer Confidence index remained near its historic low last week, slipping 0.3 points to 66.1, as households remained under pressure from weak financial conditions and elevated inflation expectations.

Asian markets were mixed with Japan down 0.2%, Hong Kong up 0.3%, China up 0.2%, and the Kospi up again to a new record. US futures were better, with the Dow up 327 and the Nasdaq up 255.

European futures are opening slightly lower. Brent crude up around 2%.

 The US and UK reopen today.

HIGHLIGHTS

• Winners:  DUR, FPH, GNG, BC8, SXE, AEL
• Losers: ASX, SMI, ELV, PXA, ELD, ARU, CGF
• Positive Sectors: Iron ore.
• Negative Sectors: Oil and gas. Healthcare. Industrials.
• ASX 200 Hi 8713 Lo 8645 – Steady and awaiting more news.
• Big Bank Basket: Eases to $274.56 (-0.3%)
• All-Tech Index: down 0.4%
• Gold: Slips to $6323
• Brent Crude up 2.2%
• Bitcoin: Steady at US$76796
• 10-year yields: Rises to 4.91%
• AUD: Steady at 71.59c.

MARKET MOVERS

• FPH +9.2% final results.
• DUR +9.9% good bounce.
• GNG +8.3% EPC – Sorby Hills Silver-lead project.
• BC8 +7.8% kicks again.
• KGN +18.6% solid results.
• STN +12.2% good day.
• ASX -13.2% capex blow-out.
• LOT -8.3% gives back some gains.
• INR -10.0% slips again.
• EXR -12.5% Diona -1 Update.
• Speculative Stock of the Day: ADO +28.1% good news keeps on coming. Signs term sheet.

ECONOMIC AND OTHER NEWS

• US and UK markets reopen.
• US conducts self-defence strikes against Iran.
• South Korea’s Kopsi hit new record.
• Taiwan has overtaken India as the world’s 5^th largest stock market.

• Carney warns Alberta separatists of Brexit-style regret
• Ferrari launches first EV with Jony Ive’s ‘polarising’ design – the design is supposed to bring new younger buyers in. For EUR 550k!
• Mexico agrees to host Iranian World Cup squad as US-Iran tensions simmer.
• Short sellers reap more than $2.3bn profit betting against gambling companies.
• Bank lending to UK businesses falls to lowest level in nearly 30 years.
• UK records the highest temperature in May ever.

And finally…

IF BY “CRUNCHES” YOU MEAN THE SOUND BACON MAKES WHEN YOU EAT IT, THEN YES I DO CRUNCHES.

Orville Wright looks at his brother Wilbur and says, “You were only in the air for 12 seconds. How could my luggage be in Cleveland?”

Clarence

XXXX