ASX 200 fell 58 points to 7176 (-0.8%) as negative sentiment flooded all sectors today. Banks slid with the Big Bank Basket down to $185.64 (-1%). CBA off 1.2% and other financials sliding too, MQG down 2.7% and insurers off with QBE falling 1.1%. MFG fell 3.1% and ASX off 1.0% despite announcing a new CEO. Healthcare on the nose too as CSL dropped 1.8%, SHL down 2.4% and RHC off 1.3%. Industrials fell, WES falling 0.6% on its investor day, TCL off 1.1% as yields rose, REITS fell hard as GMG dropped 1.8%. Telcos gave back some recent defensive gains with TLS down 1.0% and TUA down 2.6%. Tech fell with the All–Tech Index down 2.5%, WTC off 2.0%, XRO down 3.0% and CPU slipping 1.0%. BNPL stocks again on sale, SQ2 down 5.0% and ZIP off 4.8%. Over in resources, oil and gas stocks rallied despite crude slipping 2% in Asian trade ahead of OPEC plus. STO up 1.3% and WDS up 5.2% after its block trade cleared the overhang. Iron ore stocks slipped, FMG down 0.7%, RIO down 1.7% BHP off 0.1% and base metals drifted lower. Lithium stocks seemed to find a level, PLS and AKE modestly lower after the rout yesterday. Gold miners steady. In corporate news, not much out today with some economic news on balance of payments increasing to $10.495bn in April. Asian markets weaker, 10-year yields up to 3.50%
End of Day Podcast – Thursday, June 2
- Winners: STX, WDS, TAH, MAD, IGO, LTR, TER, BLY
- Losers: SYA, FCL, IHL, INR, MP1, PNV, TLX
- Positive sectors: Oil and gas.
- Negative sectors: Everything else.
- High 7222 Low 7151
- Oil slips 2% as Saudi could raise supply.
- Big Bank Basket: Drops to $185.64 (-1.0%)
- All-Tech index: Down 2.5%
- Gold: Higher at $2585
- Bitcoin: Falls to US$29,756
- Aussie Dollar: Slips to 71.44c
- 10-Year Yield:Up to 3.50%
- Asian markets: Japan down 0.2% China down 0.2% and HK down 1.8%
- US Futures: Dow and Nasdaq little changed.
- STX +12.07% outstanding productivity at South Erregullla.
- WDS +5.17% block trade solves overhang.
- IGO +3.94% wins WSA.
- LTR +3.93% bouncing slightly.
- GAL +35.82% races ahead again.
- DVP +8.00% outstanding assays confirm massive sulphides.
- BUB +5.98% fly in formula success.
- ZIP -4.79% BNPL continues lower.
- MP1 -6.04% tech sell off.
- PNV -5.86% director buying fails to stir this time.
- SYA -8.33% capital raising weighs.
- INR -6.19% lithium sell-off continues.
- PLL -11.05% lithium sell-off.
- NC1 -11.15% base metals sold down.
- DUB -10.61% ceasing to be substantial shareholder.
- Speculative Stock of the Day: Superior Resources (SPQ) +22.86% Bottletree assays return impressive 632m of mineralisation.
In the News
- Marquee Resources (MQR) and Mineral Resources (MIN) – have entered into a binding term sheet to explore for and develop lithium deposits in a joint venture across the West Spargoville project in Western Australia.
- Pro Medicus (PME)- announced its wholly-owned US subsidiary, Visage Imaging, has signed a $28m deal with Minneapolis-based not-for-profit health care entity Allina Health spread over 7 years.
- REA Group (REA) has an investor day – targeting double-digit EBITDA growth through the cycle, repeats that it is targeting open revenue and cost jaws (income growth rate versus expenses growth rate)
- Mincor (MCR) has reported further significant results at its Golden Mile project.
- Tabcorp (TAH) shareholders unhappy with prospect of equity raise if successful in WA Tab auction, according to reports in The Australian.
- Wesfarmers (WES) investor day – key messages include retail division being well equipped to manage inflationary pressures, WES portfolio continues to evolve, development of large-scale, differentiated retail ecosystem.
Economic News/Bond Markets
- The seasonally adjusted balance on goods and services surplus increased $757m to $10.495bn in April.
- Goods and services credits (exports) rose $479m (1.0%) to $50.378bn, driven by rises in exports of Travel and Other mineral fuels.
- Goods and services debits (imports) fell $278m (0.7%) to $39.883bn, driven by a fall in imports of Processed industrial supplies and Non-industrial transport equipment.
- Monkeypox case detected in Sydney after a visit to QLD. Beautiful one day. Monkeypox the next.
- Beijing beats CV19 with fewest cases in months.
- Chinese banks are facing growing pressure to support cash-strapped developers.
US and European Headlines
- No trade today/ tomorrow in UK as it celebrates the Queen’s Platinum Jubilee for four days. Big economic boost could head off a recession.
- 70 RAF arcraft will do a fly over for 7 minutes to salute the Queen. Where are Harry and Meghan?
- GBP 28m the cost to the taxpayer. Huge memorabilia. GBP400m expected to be spent on pies and beer.
- European markets opening slightly higher.
- Bitcoin stumbles below US$30,0000.
- OPEC Plus tonight. Could be a market moving event this time out.
- Sheryl Sandberg steps down from Meta.