The ASX 200 rallied 81 points to 7146 (+1.2%) as commodity prices firmed overnight and China cut interest rates to stimulate the economy. Banks and miners led the rebound to give the ASX 200 a weekly gain of around 70 points. That’s right the index was up this week. The Big Bank Basket rallied to $184.74 (0.7%) with CBA up 0.8% and NAB shining through up 0.7%. MQG rallied 2.1% with MFG even 2.4% better. Insurers suffered as bond yields fell hardback to below 3.30% on the 10s. Industrials were firm, WES bounced 1.9%, ALL upgraded by brokers had another strong day up 4.3%, TCL rose 0.9% and the tech sector was in demand, SQ2 up 9.9% and WTC rising 2.8% with the All Tech Index up 3.6%. REITs firmed, GMG up 1.2% but the real action was in iron ore miners as BHP rose 2.1% FMG up 3.9% and RIO up 1.5%. Lithium stocks in demand too PLS up 4.4% and AKE rising 5.2%. Gold miners also in demand on better bullion prices, NCM up 2.6% and GOR up 3.5%. Oil stocks missed out despite better crude prices, WPL down 3.8% with a name and code change in the wind as it beds down the BHP deal. Coal stocks better, TER up 14.8% on more debt repayment. In corporate news, CWN takeover was approved, TAH demerger also approved, WOW moved to buy MYD for $243m and CHN flew out of the traps up 19.1% after state forest access granted. Nothing on the economic front but Asian markets better across the board. HK up 2.6%, Japan up 0.9% and China up 1.4%. 10-year yields falling to 3.31%.

End of Day Podcast – Friday, May 20

Major Movers:

  • Winners: CHN, 360, NVX, AAC, SQ2, CXO, DEG, INR
  • Losers: URW, MAD, NUF, WPL, JLG, HT1, ORI
  • Positive sectors: Iron ore. Gold. Lithium. Banks. Tech.
  • Negative sectors: Oil and Gas.
  • High 7155 Low 7081.
  • Big Bank Basket: Up to $184.74 (+0.7%)
  • All-Tech index: Up 3.6%
  • Gold: Rallies to $2621
  • Bitcoin: Rises to US$30,087
  • Aussie Dollar: Up to 70.36c.
  • 10-Year Yields:tumble to 3.30% ahead of election.
  • Asian markets: HK up 2.6%, Japan up 0.9% and China up 1.4%.
  • US Futures: Dow up 169. Nasdaq up 142.

Stocks on the Move

  • CHN +19.06% State forest opens up to drill.
  • NVX +11.68% participation in Citi Lithium and Battery Day
  • 360 +12.10% tech bounce.
  • INR +7.92% lithium back.
  • CXO +8.87% flying again.
  • DEG +8.21% gold buyers.
  • CWN +0.16% shareholders vote in favour of takeover.
  • TAH +1.89% demerger approved by court
  • TER +14.75% debt reduction and possibility of dividends,
  • 3DP +20.45% techs bouncing.
  • GAL +6.94% kicks again.
  • OPY – Raising $20m through Shaw.
  • MAD -7.45% not a mad world for now.
  • NUF -4.12% broker downgrades.
  • WPL -3.75% change of name a ticker to WDS.
  • JLG -3.38% trading update and director selling.
  • AMP -2.19% AGM.
  • URW -8.89% Westfield brand being rolled out in other locations.
  • Speculative stock of the Day: Discovery Alaska (DAF) +44.44% Chulitna project sees lithium identified. 199km2 of mining claims at Coal Creek.

In the News

  • BetMakers (BET) signs new 5-year Platform and Services agreement with
  • Johns Lyng Group (JLG) COO Lindsay Barber discloses sale of 1m shares. She owns 13m shares following the sale. JLG reaffirmed guidance, expects EBITDA of $78.7m for FY22. Said it is still assessing the financial impact of recent catastrophic events including the devastating floods in SE-QLD and NSW which remains too early to quantify in terms of timing and value.
  • Panoramic Resources (PAN) commences drilling at Savannah Nickel Project.
  • Woolworths (WOW) to acquire 80% stake in for $1.05/share or $243m. MyDeal’s founder and chief executive, Sean Senvirtne, along with key management shareholders, will retain a 20% interest.
  • Carnaby Resources (CNB) says its Greater Duchess Copper-Gold project in Mount Isa has recorded “exceptional drill results” and flagged the prospect of more.

Economic News/Bond Markets

  • Westpac is sticking with its view that the Reserve Bank will lift its interest rate by 0.4% on June 7.
  • NZ will narrowly avoid recession next year as rising interest rates and falling house prices hit demand, according to the NZ Treasury Department.

Asian Markets

  • China banks cut a key interest rate by a record to stimulate its slowing economy. The five-year loan prime rate was reduced to 4.45% from 4.6%. One year rate was left unchanged at 3.7%.
  • Japan’s core consumer inflation in April exceeded a central bank target of 2% for the first time in seven years. Current price rises stem from higher import costs. The core consumer price index (CPI) which does not include volatile food prices, rose 2.1% in April from a year earlier, well below the 9% jump in the US and 8.3% growth in the UK.
  • The “core-core” CPI — a narrower measure that excludes all volatile food and energy prices, was up 0.8% from a year earlier.
  • South Korea’s producer prices rose at a faster pace in April, underscoring stubborn inflationary pressures in the economy.
  • Chinese EV maker NIO debuted in Singapore with a strong start.

US and European Headlines

  • G7 Finance ministers and the Wunch of Central Bankers continue the gabfest in Bonn.
  • German April PPI +2.8% m/m v 4.9% in March.1.4% was the forecast.10m German workers have wage negotiations this year.
  • US Senate sends $40bn Ukraine aid package to Joe Biden’s desk.
  • Biden vows to protect Finland and Sweden during NATO accession talks.
  • US heading for its eighth week in a row down. Something not seen since 1932.

And finally…