ASX 200 rallied 63 points to 7239 (+0.9%). Resources were the stand outs today with iron ore stocks leading the charge, BHP up 2.5% and FMG rising 4.1%. Base metal stocks also rose with S32 up 2.0% and lithium stocks charging ahead on a bounce from Wednesday’s carnage. PLS rose 7.5%, INR up 16.5% and AKE up 3.8%. Gold miners were better too as bullion rose in USD with NCM up 1.4% and NST up 1.4%. Oil and gas a little mixed as WDS flat lined with STO up 0.8%, WOR up 4.4%. Industrials were mildly better with REITs drifting higher, GMG up 1.2% and SCG up 0.7%. Healthcare finished a little higher as CSL rose 0.1%, RMD up 2.6% and RHC off 0.2%. Tech better as the All–Tech Index rose 1.9% with WTC up 5.1% and XRO up 1.0%. Banks a little mixed with the Big Bank Basket $185.50. CBA down 0.2% and WBC up 0.3%. Insurers were under a little pressure as yields steady at 3.50%. In corporate news, HLS fell 8.7% on a trading update citing headwinds etc, FFX dropped 63.7% as it went Ex-Bonus of the Leo Lithium stock. Asian markets subdued as China and HK closed.

HEADLINES

  • Winners: INR, MND, BCB, BOE, LKE, CIA, PLS, GOR
  • Losers: FFX, HLS, ACL, HT1, STX, DMP, ANN, MYX
  • Positive sectors: Iron ore, Lithium, Gold, Tech
  • Negative sectors: None
  • High 7255 Low 7205
  • ASX 200 rises 56 points for the week
  • Big Bank Basket: Drifts to $185.50 (0.1%)
  • All-Tech index: Bounces 1.9%
  • Gold: Drifts to $2573 as AUD rallies
  • Bitcoin: Back to US$30469
  • Aussie Dollar: Rises to 72.52c
  • 10-Year Yield:Up to 3.50%
  • Asian markets: Japan up 0.35% China and HK closed for the Jubilee
  • US Futures: Dow up 38 Nasdaq unchanged ahead of jobs number

MAJOR MOVERS

  • INR +16.48% LKE +8.30% CXO +6.58% lithium bounce takes shape.
  • BOE +8.33% Honeymoon is back on.
  • CIA +8.14% Iron ore pushed ahead on Chinese reopening.
  • FCL +4.97% change of director’s interest.
  • SLX +11.11% enriching uranium since the 90s.
  • IHL +8.00% IHL-42X phase 2 clinical trial presentation.
  • HIO +10.89% iron ore rallies.
  • FFX -63.68% ex-bonus issue of Leo Lithium.
  • HLS -8.65% YTD update and Adora Fertility completion.
  • STX -4.62% profit taking.
  • ACL -5.98% downdraft continues.
  • ATL -0.91% where are you?
  • Speculative Stock of the Day: Meteoric Resources (MEI) +14.29% sells Juruena gold project for $30m

IN THE NEWS

  • CapVest withdraws its takeover bid for Virtus Health (VRT)
  • Healius (HLS) year to date unaudited underlying EBIT $473m vs year-ago $234m. Healius continues to trade broadly in line with previous commentary provided at the Strategy Day in May with COVID testing remaining around 15K per day in May. Cited difficult market conditions in the second half.
  • AMP (AMP) – Vicinity Centre (VCX), GPT Group (GPT) thought to be interested in AMP Capital Shopping Centre Fund.
  • Emerald Resources (EMR) – has increased its stake, and therefore voting power, in takeover target Bullseye Mining to 58.79%
  • Adore Beauty (ABY) has appointed Lisa Hennessy as an independent non-executive director, effective today.

ECONOMIC NEWS/ BOND MARKETS

  • The value of new housing loan commitments fell 6.4% to $31.0bn in April 2022 (seasonally adjusted), following a rise of 2.1% in the previous month, according to data released today from the Australian Bureau of Statistics (ABS).
  • Goldman Sachs and Bank of America expect the Reserve Bank of Australia to continue its “hawkish pivot” through a full 1% increase to the cash rate in the next two months.
  • Morgan Stanley says Global CPI inflation increased about 150bps from January to April this year (about 4.5 per cent to 6 per cent), reflecting core (+50bp), energy (+30bp) and food (+70bp). Roughly half of the rise is explained by food prices.”
  • Janus Henderson’s Australian fixed interest team expects the cash rate to end this year at 1.5%, and has pencilled in further tightening in 2023 to take it to 2.75%.

ASIAN MARKETS

  • South Korea’s inflation outpaced forecasts again, accelerating beyond 5% for the first time in more than 13 years. Consumer prices advanced 5.4% in May from a year earlier, faster than economists’ forecasts of 5.1% and reaching the highest level since August 2008.
  • Japan became one of the first major economies to introduce a legal framework around stablecoins. The parliament passed a bill today that made stablecoins as ‘digital money’.
  • A report into the collapse of Terra Blockchain by Jump Crypto, has seen big investors as the sellers as the retail market continued to buy in.

US AND EUROPEAN HEADLINES

  • US May Jobs report looms. Economists see 328,000 jobs added in May, down 100,000 from April.
  • Consensus estimates call for wages to rise by 0.4%, a faster pace than April’s 0.3% increase.
  • UK closed again for Jubilee celebrations.
  • Ukraine has raised its interest rates to 25%.
  • Biden urges Congress to ‘meet the moment’ on gun control.
  • Ford to invest $3.7bn in Midwest US manufacturing amid electric vehicle push.

And finally….

Clarence

XXXX

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