The ASX 200 recovered off lows to close down 38 points at 7490 (0.5%). The switch was back on as money flowed from resources and tech into banks and banks. The Big Bank Basket rose to $189.87 The big four were all bought on 10-year yields heading towards 3%. RBA rapidly becoming even more irrelevant. CBA up 1.3% and ANZ higher by 1.2% with QBE joining in the fun rising 1.4%. MFG slipped 6.0% as it went ex-bonus options, elsewhere in the industrials, GMG fell 1.7% on higher rates, ALL down 3.8% and SEK off 1.8%. Healthcare under a little pressure, CSL off 0.4% and SHL down 1.4%. In tech we saw sellers again as Nasdaq fell overnight, SQ2 down 6.9%, WTC down 1.0% and XRO off 2.9% with the AllTech Index down 2.2%. Resources were the weak spot today. More CV19 cases in China and extended shutdowns sapping enthusiasm with Chinese PMI down to 43.9 from 50.1 in February. BHP off 1.0%, RIO down 1.2% and S32 down %. Lithium stocks were depressed as heat came out of the market, PLS off %, LYC fell 6.0% and LTR dropped 5.8%. Gold miners slid led by NCM down % and NST off %. Oil and gas stocks fell, STO down 1.0% and WPL down 0.6%. In corporate news, another bid for VRT, PNV rose % on a good earnings update and WBT rallied another 6.2% on successful functional testing of its demo chip. Nothing on the economic front. Asian markets weaker with Chinese PMI suffering from a nasty bout of omicron. 10 – year yield close to 3%.

MAJOR MOVERS:

  • Winners: SYA, LRS, NHC, WBT, WHC, SMR, OBL, SSM
  • Losers: ADN, PLL, AIZ, FFX, NVX, SQ2, ALK, AVZ
  • Positive sectors: Banks.
  • Negative sectors: Materials. Oil and gas. Gold. REITs.
  • Hi 7504 Lo 7438
  • Big Bank Basket: Rises to $189.87 as bond yields rise towards 3%.
  • All-Tech index: Down 2.2%
  • Gold: Steady at $2535
  • Bitcoin: Falls to US$45347
  • Aussie Dollar: Falls to 75.82c 10-YEAR YIELD: Better at 2.97%. 3% will be significant.
  • In Asian trade, HK down 1.5% China reopens down 0.4% and Japan down 1.6%.
  • US Futures: Dow up 22

STOCKS ON THE MOVE

  • SYA +9.68% kicks back
  • JMS +3.85% bit of action
  • WBT +6.16% demonstrates chips successfully completes functional testing.
  • NHC +6.92% SMR +5.47% WHC +5.33% coal price rises.
  • LRS +30.30% expands high grade Salinas Lithium project.
  • SWP +12.17% kicks higher.
  • PNV +4.63% Trading update Q3 FY22
  • ADN -34.29% Great Kaolin Project – DFS
  • MFG -5.96% quoted ex-bonus issue.
  • SQ2 -6.88% US tech sell off.
  • AIZ -9.30% searching for Black Box now.
  • RED -6.33% profit taking.
  • LTR -5.78% Investor presentation.
  • CXM -23.81% share placement and entitlement.
  • AVL -8.16% dream run is over.
  • EUR -12.50% $30m placement.
  • STA -6.19% falls towards issue price of 43c.
  • Speculative stock of the Day: Emperor Energy (EMP) +64.44% independent resource statement for Vic/P47. Good volume too.

IN THE NEWS

  • Crown Resorts (CWN) VGCCC confirms it is commencing disciplinary proceedings over China Union Pay process.
  • BGH Capital lobs 800c unconditional bid for Virtus Health (VRT). VRT has already recommended an 810c offer from CapVest. BGH’s offer is apparently a bit cleaner, without reliance on tax rulings, capital requirements and special dividends.
  • PolyNovo (PNV) posts record March quarter revenue of $12.26m, up 59.3% vs a year ago. Improving COVID trends and more sales reps tailwinds according to management. Annual run rate at $48m.
  • Syrah Resources (SYR) board has approved a final investment decision for the installation of a solar and battery hybrid power system at its Balama graphite operation in Mozambique.

ECONOMIC NEWS/ BOND MARKETS

ASIAN MARKETS

  • Chinese Caixin Composite PMI down to 43.9 v 50.1 in February. Not good news. CV19 taking its toll.
  • China back open and tech sell off continues.
  • Chinese CV19 cases top 20,000 as iso attempts expand.
  • China’s UN Envoy says the violence and human rights abuses in Bucha are ‘deeply disturbing’.

US AND EUROPEAN NEWS

  • Hard to believe it hasn’t been done by now, but the European Union is discussing sanctioning Russian President Vladimir Putin’s daughters. Sanctioning Putin’s daughters, Katerina and Maria, is largely a symbolic move since it’s unclear they have significant assets outside of Russia.
  • US prepares fresh sanctions and EU targeting coal and shipping. Not oil and gas but that is only a matter of time. Any fresh EU sanctions will need to be approved by all 27 members. Hungary could be a hold out.
  • EU’s top diplomat calls Chinese summit a ‘deaf dialog’ on Ukraine.
  • Russian new vehicle sales fell 60% in March from the previous month at Rolf, Russia’s largest dealership. Vehicle prices rose 40% in March.
  • Russian inflation getting nasty.
  • Anthony Scaramucci sees bitcoin at US$500,000 and he sees a little silhouetto of a man. Galileo.
  • Uber adds planes and trains to automobile app.

And finally….

Clarence

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