The ASX 200 was whacked hard today falling 159 points to 7206 (-2.2%). Selling from the open in all sectors as expected. Some small rally into the close, holding above support at 7200. Nowhere to hide although banks held up better and tech got hurt the worst. The Big Bank Basket fell to $184.61 (-1.2%) with NAB down 2.0% and MQG revealing great numbers but got smashed by 7.8%. Insurers held up slightly better with QBE off 0.3% and SUN down 1.2%. Healthcare slumped as CSL fell 2.9% with SHL off 1.5% and RHC falling 0.9%. REITS fell led by GMG, down 4.7% and industrials also fell, QAN down 2.7%, SEK down 6.6% and NWS tumbling 7.8% on results, REA too down 8.1% on its results. Tech was in a world of pain with XRO off 9.1% and CPU falling 2.7% with second liners plugged and abandoned. The All–Tech Index outdid the Nasdaq falling 4.7%. Resource stocks also in the firing line, iron ore fell slightly in Asian trade, BHP off 1.4%, RIO down 2.1% and FMG unchanged Even oil and gas stocks fell despite crude price rises, STO down 1.6% and WPL down 1.4%. Coal too took a break, SMR down 4.8% and WHC off 2.4%. Lithium stocks were depressed PLS off 3.5% and LYC down 3.2%. Base metal and gold stocks also sold off. Plenty of unwinding of risk. In corporate news, NWS reported as did REA with MQG pretty much-unchanged offering no guidance hurting sentiment. CRN responded to media speculation on merger activity. Asian stocks mixed, HK tech down hard, Japan better as inflation hits 1.9%. Locally we had RBA Statement of Monetary Policy (SOMP) and 10-year yields up to 3.47%. Ironically the US market has gone nowhere this week. Before tonight. NFP beckons.

Major Movers:

  • Winners: PNV, OFX, BRN, FPH, COL, OMH
  • Losers: PDN, TPW, INR, 360, VUK, IEL, BOE, NVX
  • Positive sectors: Nothing.
  • Negative sectors: Everything.
  • High 7335 Low 7161. ASX 200 down 3.1% this week.
  • NFP tonight. 391,000 and 3.5%
  • Big Bank Basket: Falls to $184.61(1.2%)
  • All-Tech index: Down 4.7%. 7.3% for the week. Nasdaq unchanged so far this week. So far.
  • Dalian iron ore futures down 1.6%
  • Gold: Slightly higher to $2643
  • Bitcoin: Lower at US$36392
  • Aussie Dollar: Falls to 70.85c on RBA.
  • 10-Year Yield: Up to 3.47%
  • In Asia: Tokyo up 0.9%, China down 2.1% and HK off 3.6%
  • US Futures: Dow up 27 Nasdaq up 20

Stocks on the Move

  • PNV +4.05% Director share purchase.
  • BRN +3.41% response to ASX speeding ticket.
  • COL +1.03% defensive buyers.
  • FPH +2.27% RMD +0.24% bargain hunters around.
  • TPW -10.93% tech stock falls.
  • PDN -10.30% heading towards SPP price.
  • INR -9.60% sell off continues.
  • CXL -7.09% profit taking.
  • BOE -5.00% ceasing to be a substantial shareholder.
  • CRN -8.13% response to media reports on possible change of control.
  • AMS -49.17% shock profit downgrade.
  • POS -7.79% metal stocks sold off.
  • CTT -9.65% sell off continues.
  • AGL -0.83% demerger investor presentation
  • IPO of the Day:  Chrysos Corp (C79) -36.15% Not the best day to debut.
  • Speculative stock of the Day:  Nothing on any volume, unsurprisingly.

In the News

  • REA Group (REA) – Q3 EBITDA $155m vs year-ago $123m. The company benefited from a strong Australian residential property market, with national listings up 8% for the quarter, driven by Melbourne which was up 14%. Sydney was up 6%.
  • Macquarie Group (MQG) – Full-year profit rose 56% to $4.6bn, and for the second half, rose 31% to $2.7bn y/y. Final dividend of 350cps was declared.
  • Coronado (CRN) – confirmed to the ASX it had conducted confidential discussions with Arch Resources regarding a merger but was no longer in discussion.
  • News Corp (NWS) – third quarter revenues rose to 7% to a record $US2.49bn compared with the previous year and net income of $US104m, 8% higher year-on-year. EBITDA gained 20% to $US358 million for the quarter, due primarily to higher revenues, and lower costs, and earnings per share edged up to US14¢, from US13¢.
  • Barrenjoey Capital has jumped to the top spot for mergers and acquisitions this year following its role advising on the $20bn bid for RHC.

Economic News/Bond Markets

The RBA SOMP out today: Click here for the full statement.

  • says inflation could exceed its expectations if workers demand higher wages to compensate for increased living costs as it forecast the jobless rate to decline to its lowest level in almost half a century.
  • now expects wages to increase at 3% by the end of next year, six months earlier than it forecast in February, and reach 3.7% in the forecast period to June 2024. The previous forecast peak was 3.25%.
  • anticipating CPI to hit 6% by December, from 3.25% in its February projection, and core inflation, its preferred measure, to top 4.75% by year-end, from 2.75%.

Asian Markets

  • China has ordered central government agencies and state-backed corporations to replace foreign-branded personal computers with domestic alternatives within two years.
  • Japanese inflation rose at the fastest pace in almost three decades in April with a 1.9% rise excluding fresh food.

US and European News

  • The only game in town – Non-Farm Payrolls tonight.
  • European markets to open lower but not too bad.
  • Bausch + Lomb Prices IPO at $18 a Share, below expectations.
  • BoE warns of recession risk this year.
  • Boeing moving HQ to Washington DC from Chicago.
  • US Senate Committee has passed a ‘NOPEC’ bill which has been around for decades to punish nations that collude to push prices higher.  OPEC views the market as balanced. 10-minute virtual meeting yesterday.

And finally….

Clarence

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