The ASX 200 eased back another 10 points to 8631 (0.1%), capping off a miserable week at the index level. The index fell 1.3% this Budget week, mainly as banks crashed with CBA in focus. Banks made up some lost ground after significant falls this week, with CBA up 1.9%, ANZ up 1.1%, and the Big Bank Basket rising to $266.97 (1.4%). Insurers had a good day, with QBE rising 1.9% and SUN also doing well. REITs strengthened, with VCX up 1.6% and GPT also leading the charge. Industrials were firm too, with stocks like SHG, REH, and WOR all posting solid gains today. Even the supermarkets WOW and COL were firmer despite recent court woes.

Healthcare edged higher, with RMD up 1.2% and CSL finding some friends, up 0.7% , but the real stars of the show today were, surprisingly, the tech space, with XRO bouncing 8.1% following yesterday’s results and WTC also having a strong day, with the All-Tech Index bouncing 2.3%.

Whilst banks, industrials, and technology stocks were firm, resources were well and truly on the nose today as inflation continues to plague the market, or at least traders’ thoughts. Copper and gold both eased back, with BHP down 2.6% and RIO falling 3.2%. The gold stocks were also under pressure, with NEM falling hard, as did EVN, down 5.5%. Lithium stocks also took a breather, and news that Chris Ellison had sold part of his holding in MIN also weighed on the sector, down 7.7%. The oil price continues to bubble higher, with no resolution, it seems, on the blockade in the Gulf. WGS did well, up 2.1%, and STO also had a blinder today, rising 2.7%. In corporate news, EOS shot the lights out as it prepares to take control of MARSS Defence Technology in the coming days, while also securing a $165m order from an existing Middle Eastern customer. TWE added 1.9% after French billionaire Olivier Goudet lifted his stake in the company.

Nothing on the economic front. Asian markets drop hard, Japan down 2.1%, HK off 1.6%, China down 0.8% Kospi off 6%.

US futures lower with Dow down 163 Nasdaq down 185.  European futures opening around 1% lower.

HIGHLIGHTS

• Winners: FRS, WBT, 4DX, XRO, EVT, TUA
• Losers: EQR, KCN, AGI, LRV, IPX, ELV
• Positive Sectors: Banks. REITs Industrials. Tech.
• Negative Sectors: Resources.
• ASX 200 Hi 8692 Lo 8610
• Big Bank Basket: Recovers to $266.97 (+2.4%)
• All-Tech Index: Up 2.3%
• Gold: Slips to $6380
• Brent Crude up 2.0%
• Bitcoin: Falls to US$80434
• 10-year yields: Steady at 5.06%
• AUD: Falls to 71.62c.

MARKET MOVERS

• WBT +11.8% chip stock. Result of SPP.
• FRS +14.2% acquisition and placement
• 4DX +8.9% no reason.
• XRO +8.1% result rethink.
• DTR +2.5% drilling results.
• PEB +44.8% draft LCD proposes Medicare coverage.
• RAC +8.7% Trial cleared to escalate to next RC220 dose level.
• EQR -10.9% profit taking.
• LRV -9.8% profit taking.
• MIN -7.7% Chris Ellison sells down.
• MI6 -8.2% resource pressure.
• AI1 -15.4% profit taking.
• Yesterday’s Hero: SLB -14.8%
• Speculative Stock of the Day:  EXL +114.3% Priceline deal

ECONOMIC AND OTHER NEWS

• Trump and Xi wrap up two -days of deals.
• China and US ‘feel very similar about Iran’, Trump says.
• Saudi Arabia floats Middle Eastern non-aggression pact with Iran.
• Andy Burnham makes his move on Starmer.
• Honda rose over 7% on Friday, even after the Japanese automaker posted its first annual operating loss in nearly 70 years.  Honda swung to an operating loss of 414.3 billion yen ($2.61 billion) for the fiscal year ending March, compared to an operating profit of 1.2 trillion yen the year prior.
• Gautam Adani and nephew agree to pay $18m in SEC settlement over fraud allegations
• Kospi falls 6% plus as Samsung struggles on labour woes.
• AI optimism lifted sentiment around Chinese technology and cloud companies.

And finally….

I told my suitcase that there will be no vacation this year.

Now I’m dealing with emotional baggage.

I asked the surgeon if I could administer my own anesthesia…

He said, “Sure knock yourself out.”

Clarence

XXXX