The ASX 200 finished down 47 to 7443 (-0.6%) as the unwind continued after the Fed speak. Tech and resources on the nose today. The Big Bank Basket slipped to $189.16 (-0.3%) and MQG off 1.5% with insurers falling too. QBE down 2.0% and IAG off 2.5%. MFG had a great day on an update in FUM numbers, rising 11.4%, GQG too had better FUM numbers and rose 9.7%. Industrials mainly escaped the sell-off although REA down 2.2% and SEK off 2.4%. Tech falling again as Nasdaq slid, WTC down 6.6%, CPU down 1.6% and SQ2 off 4.3%. The AllTech Index down 3.1%. Materials and resources slipped again with lithium depressed, PLS off 3.6%, LTR falling 6.7% and LYC down 6.7%. BHP fell 0.7% with FMG and RIO barely changing. IGO down 3.1% and S32 sliding 1.0%. Gold miners going nowhere but energy stocks down despite higher crude prices in Asian trade. WPL down 2.5% and STO off 1.4%. In corporate news, another bid for VRT pending, ALG did a great deal with Main Event and rose 6.2%, BCI fell 6.3% on a Mardi project update and GOR fell 0.7% on a production update. In economic news, trade balance for February fell to $7.46bn, below estimates of $11.65bn. Exports were flat which was in line with consensus. Asian markets weaker, 10-year yields ease back to 2.91%

End of Day Podcast – Thursday, April 7

Major Movers:

  • Winners: MFG, GQG, ALG, MGH, YAL, BOE, GNC
  • Losers: ARU, SYA, AGY, TPW, 360, LTR, WTC, WBT
  • Positive sectors: Consumer staples. Defensives. Gold.
  • Negative sectors: Tech. Oil and Gas. Lithium. Battery Tech. Banks.
  • High 7482 Low 7438. Same low as yesterday. Coincidence?
  • Big Bank Basket: Falls to $189.16. Modest 0.3% fall
  • All-Tech index: Down 3.1%
  • Gold: Better at $2571
  • Bitcoin: Falls to US$43,382
  • Aussie Dollar: Falls to 74.84c
  • 10-Year Yield: Drops to 2.91%
  • In Asian trade, HK down 1% China  down 0.9% and Japan down 1.6%
  • US Futures: Dow down 102 Nasdaq down 49. Rallying as we go to print.

Stocks on the Move

  • MFG +11.38% FUM not as bad as previous ones.
  • ALG +6.18% sells Main Event in US.
  • GQG +9.68% FUM numbers.
  • PDN +3.23% cleansing notice.
  • MAY +22.22% Alameda -1 significant oil pay defined in Marti structure.
  • SYA -13.24% profit taking.
  • ARU -13.25% rare earth falls.
  • CXO -6.16% thud.
  • AGY -8.49% lithium depressed.
  • WTC -6.55% becoming a substantial holder.
  • TMT -14.91% paydirt conference presentation.
  • AZL -7.89% coming off the boil.
  • IPO of the Day International Graphite (IG6) +80.00% stunning debut on good volume. $10m IPO at 20c and acquisition of Springdale Graphene project in WA.
  • Speculative stock of the Day: HAW +45% LCY +95.00% Mt Bevan agreement completion.

In the News

  • Bank of Queensland (BOQ) appoints Racheal Kellaway as CFO.
  • Poseidon Nickel (POS) said it is progressing toward generating revenue in mid-2023.
  • Western Areas (WSA) likely to remain in trading halt until talks with IGO (IGO) are resolved.
  • CapVest expected to increase offer for Virtus Health (VRT)following BGH’s offer yesterday.
  • Ardent Leisure (ALG) and Redbird to sell Main Event to Dave Buster’s for US$835m on a cash-free debt-free basis.
  • Scentre Group (SCG) reiterates FY22 DPS guidance of at least 15c at AGM.
  • Magellan (MFG) funds under management steadied at $70bn at the end of March from $69.1bn on March 11. Outflows of 1.1bn were recorded with the improvement in FUM driven by positive market moves.
  • Telstra (TLS) CEO expects Digicel acquisition to be implemented by month-end despite new tax from PNG government.
  • Gold Road Resources (GOR) reports Q1 Gruyere gold production of 71,135oz.
  • Navigator Global Investments (NGI) is set to acquire a 19.8 % interest in real estate investment firm Marble Capital for a total consideration of $US100m($133m). It is also raising $47m via a fully underwritten placement, and up to $10m through a subsequent non-underwritten share purchase plan at 155c.
  • Kogan (KGN) will distribute home, motor, and compulsory third party insurance issued by QBE Insurance under the Kogan brand beginning this year.
  • IPO Chrysos has its IPO covered at 650c for a $637m market cap.

Economic News/Bond Markets

  • Westpac has revised its interest rate calls as it now expects a much shorter tightening cycle, with consecutive rate rises in June (15 basis points), July (25 bps) and August (25bps). Westpac expects further rises in October (25bps) and November (25bps), reaching 1.25 per cent by year’s end.
  • Trade balance for February fell to $7.46bn, below estimates of $11.65bn. Exports were flat which was in line with consensus. Imports rose 12% which was ahead of expectations of 2%.
  • The final estimate for building approvals confirmed a 43.5% rise in February, well ahead of estimates of a 5% improvement, driven by a large increase in apartment approvals. The preliminary release was out last Thursday so it is not new information.

Asian Markets

  • JD.Com’s founder Richard Liu has stepped down as chief executive officer of China’s No. 2 online retailer. Xu Lei, who was recently promoted to president after more than a decade at the company, takes the helm of the behemoth.
  • Chinese authorities are set to increase infrastructure spending to help counter the effects of a CV19 slowdown. Planned investment this year amounts to at least 14.8 trillion yuan (US$2.3 trillion). Much of the spending is aimed at transportation, water, and digital infrastructure. China already has more than twice as much high-speed railways as the rest of the planet combined.

US and European News

  • European markets set to open lower.
  • Ukraine’s Foreign Minister asks for only three things from NATO. Weapons. Weapons. Weapons.
  • EU oil embargo will be discussed on Monday.
  • French Presidential election starting to get interesting as Le Penn may be mightier than the Macron. Far right and Far left making gains. 12 candidates in the election.
  • Nancy Pelosi set to visit Taiwan for first trip of its kind in 25 years.
  • EU divided on all put Russian oil ban. Hungary will be the issue.
  • Canada will ban most foreigners from buying homes for two years as house prices go through the roof.
And finally…..