ASX 200 hits another record of 7295 up 35 (0.5%). For the week, the ASX 200 is up 1.6%. Dow futures down 32. Once again it was all about the banks as the Big Bank Basket continues to roar higher up to $186.10. Other financial joined in with the insurers doing well too, QBE up 1.8%, SUN up 0.9% and IAG up 2.5%. MQG found some friends up 1.0%. Healthcare pushed ahead with CSL up 1.5% and industrials were green across the screen, TLS up 1.7%, WOW up 1.0% and REH up 3.6%. Resources held us back, gold miners slumped as bullion slipped on a stronger USD, NCM down 2.1% DEG off 8.6% and NST slipping4.8 %. Big miners also in the naughty corner on the stronger USD, BHP down 1.7% and FMG off 2.0%. Base metal stocks under pressure too, IGO down 3.5% and S32 off 0.6%. Energy stocks took a breather. In corporate news, TRS down 7.9% warns sales are trading below pre-COVID levels. Tech names eased, APT down 0.8% and APX down 6.3% as the CEO sell down shares for tax reasons. The AllTech Index down 0.4%. Not much out on the economic front, new loans for housing rose 3.7% in April (good for banks) to a record high of $31bn, missed consensus estimates of a 5.4% lift. 10-year bond yields at 1.69% slightly firmer.

Today’s Highlights

  • ASX 200 rises 35 to 7295. More records.
  • High 7300 Low 7244. Narrow range.
  • ASX 200 up 1.6% this week.
  • Dow futures down 32.
  • Big Bank Basket rises again to $186.10
  • All Tech Index down 0.5%
  • Australian Gold slips to $2441.
  • 10-year yield rises to 1.69%
  • AUD drops to 76.60c.
  • Bitcoin falls to US$37418
  • Asian markets mixed with Japan down 0.6% and China up 1.2% ahead of NFP

STOCKS

  • HUM +6.34% humming along.
  • ORG +5.36% building on recent gains.
  • INR -10.53% environmental issues ahead.
  • DEG -8.60% gold price weakness.
  • GOR -4.65% SLR -8.22% bullion drop.
  • SZL -4.35% rethink after big rally yesterday.
  • TRS -6.33% supply chain issues.
  • GCY -19.44% guidance update.
  • BD1 -10.50% update on legal proceedings.
  • CLV +8.61% becoming a substantial shareholder.
  • ABY +7.25% rally continues off lows.
  • AGL +1.85% found a bottom?
  • APX -6.28% CEO sells to pay tax.
  • KED -6.86% sell off continues.
  • RIO -1.88% Ben Wyatt becomes first indigenous director.
  • Speculative Stock of the Day: Nothing on volume. Prescient (PTX) +30.77% one of the few to move on volume. Someone knows something. ASX query yesterday was a Schultz defence.
  • Biggest Winners: LTR, TLX, HUM, ARB, ORG, PDN, BEN and JMS.
  • Biggest Losers: INR, DEG, SLR, RMS, KED, APX, RSG, WAF and PRU.

TODAY

  • ASX (ASX) -0.35% May volatility 0.6% vs year-ago 1.3%. Expected future volatility (as measured by the S&P/ASX 200 VIX) average of 12.6 vs year-ago 24.7. Total capital raised $7.88bn vs year-ago $7.54bn. Total average daily value $6.35bn vs year-ago $7.45bn.
  • Fletcher Building (FBU) +1.96% To commence previously announced NZ$300m on-market share buyback program on June 10.
  • Decmil Group (DCG) –3.00% Has reaffirmed guidance and provides order book update; expects EBITDA for the financial year of $6-10m. FY21 guidance: Revised revenue guidance downgrade to $300-320m vs prior guidance $360m, due to delays in contract awards and commencement of projects. Order book update: Current work in hand $590m and contracted work in hand for FY22 ~$400m. On the Causeway Bridge Contract: Decmil has been shortlisted to construct the new Swan River Causeway bridge in Perth, WA. Contract anticipated to be awarded in late CY21 with construction expected to commence in mid-2022.
  • Reject Shop (TRS) -6.33% Provide trading update; guides FY21 EBIT (pre AASB-16) of A$8-10m vs consensus $13.4m. Trading update: Since H1 results announcement, trading activity has continued to be challenging with the Company’s stores in CBD locations and large shopping centres, typically in metropolitan areas, continuing to trade well below pre COVID-19 levels. In addition, the Company continues to incur materially increased supply chain costs, particularly higher international shipping costs as well as costs associated with holding inventory due to international shipping delays. FY21 guidance: Sales revenue $776-778m vs consensus $803.3m, EBIT $8-10m vs consensus $13.4m.

ECONOMIC NEWS

The Australian Chamber of Commerce and Industry released its 2021 survey, cites Deteriorating relations, including trade-related friction, making normal operations for Australian exporters in China “impossible.”

  • New loans for housing rose 3.7% in April to a record high of $31bn, although missed consensus estimates of a 5.4% lift. ABS head of Finance and Wealth, Katherine Keenan, said: “The value of new loan commitments for owner-occupier housing reached another all-time high in April 2021, up 4.3% to $23.0 billion. New loan commitments for investors rose 2.1% to $8.1 billion, which was the highest level since mid-2017.”

BOND MARKETS

CV19 NEWS

  • Vaccine Tracker: 2.01bn doses in 176 countries. 36.4m a day. In US, 298m doses, under 1m a day now.
  • Tokyo’s Shinjuku ward said it aims to prioritize young people in their 20s and 30s when it begins vaccinating those under the age of 59 in July.
  • Mexico administered 1.06m shots of Covid-19 vaccine on June 2nd. Mexico has administered 32.87m doses and 13.4m people are fully vaccinated.
  • Brazil reported a total of 16.8 million cases, with 83,391 confirmed in the last 24 hours

ASIAN NEWS

  • China bans HK commemorations for Tiananmen Square.

US AND EUROPEAN HEADLINES

  • Apple working on am iPad Pro with wireless charging.
  • G7 Meeting in UK this weekend.
  • Portugal goes amber from green. Holiday makers not happy Jan. 7 destinations go red.
  • Musk has been tweeting again on Bitcoin. Bitcoin tweet had broken heart emoji. The token dropped 3.5% in the tweet.
  • Biden blocks a total of 59 Chinese companies.
  • BMW plans to build 360,000 electric-vehicle charging sites in China this year
  • Non-farm payroll number tonight. It’s a biggie. Forecast for 650,000 jobs added . Headline down to 5.9%

And finally….

There was a preacher who fell in the ocean and he couldn’t swim. When a boat came by, the captain yelled, “Do you need help, sir?” The preacher calmly said “No, God will save me.” A little later, another boat came by and a fisherman asked, “Hey, do you need help?” The preacher replied again, “No God will save me.” Eventually the preacher drowned & went to heaven. The preacher asked God, “Why didn’t you save me?” God replied, “Fool, I sent you two boats!”

Two guys are walking through a game park & they come across a lion that has not eaten for days. The lion starts chasing the two men. They run as fast as they can and the one guy starts getting tired and decides to say a prayer, “Please turn this lion into a Christian, Lord.” He looks to see if the lion is still chasing and he sees the lion on its knees. Happy to see his prayer answered, he turns around and heads towards the lion. As he comes closer to the lion, he hears the it saying a prayer: “Thank you Lord for the food I am about to receive.”

An old man goes to a church, and is making a confession:
Man: “Father, I am 75 years old. I have been married for 50 years. All these years I had been faithful to my wife, but yesterday I was intimate with an 18 year old.”
Father: “When was the last time you made a confession?”
Man: “I never have, I am Jewish.”
Father: “Then why are telling me all this?”
Man: “I’m telling everybody!”

Clarence

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