ASX 200 rises 25 points to 7121 (+0.4%) as the bifurcation continues. Banks in the doghouse on fears for growth, housing and NIM. The Big Bank Basket fell to $172.25 (-4.3%), now around 9% off its recent highs. WBC down 6.1%, CBA down 4.4% Other financials doing much better, MQG up 1.0%, QBE up 1.4% and SUN up 1.3%. MFG still fell another 4.3%, PTM up 0.9% on FUM numbers. Healthcare was also better led by CSL up 1.2% and RHC rallying 1.6%, Industrials saw some strength too, TCL up 1.4% as ALX attracts the attention of IFM, ALX up 16.2%, Consumer stocks better, COL up 1.2%, WOW up 1.0% but WES struggling down 0.7%. Tech stocks better as Nasdaq rallies, XRO, CPU up 1.6% and WTC rising 2.8%. The All–Tech Index up 1.4%. Resources kicked higher, iron ore stocks leading the charge, BHP up 2.3%, RIO up 2.0% and base metal stocks also doing well, S32 up 1.6% and IGO rallying 2.8%. Lithium flat, gold miners better with NCM up 1.1% and NST rising 2.3%. Energy stocks pushing hard, STO up 3.4%, WDS up 5.6% and coal stocks a little better with YAL up 7.8% on more news on a potential takeover. In corporate news, BLD found a new CEO and rose 14.7%, ALX caught the eye of IFM rising 16.2% and PTM revealed its FUM dropped $209m. Nothing new on the economic front as banks rush to raise mortgage rates and pass-through RBA rate rise. Asian markets mixed Japan up 1.2% China down 0.1% and HK up 1.8%. 10-year yields ease to 3.54%.

End of Day Podcast – Wednesday, June 8

Headlines

  • Winners: ALX, BLD, PDN, BOE, YAL, WDS, BCB, SMR
  • Losers: 5EA, BEN, PRN, WBC, SYA, OML, JRV
  • Positive sectors: Iron ore. Energy. Uranium. Healthcare. Tech.
  • Negative sectors: Banks
  • High 7162 Low 7113
  • Big Bank Basket: Whacked to $172.25 (-4.3%)
  • All-Tech index: Rises 1.4%
  • Gold: Steady at $2567.
  • Bitcoin: Back to US$30267
  • Aussie Dollar: Steady at 72.03c
  • 10-Year Yield:Eases to 3.54%
  • Asian markets: Japan up 1.2% China down 0.1% and HK up 1.8%.
  • US Futures: Dow down 70 Nasdaq down 65.

Major Movers

  • ALX +16.20% IFM buys 15% in raid.
  • BLD +14.69% new CEO named.
  • PDN +13.48% BOE +11.87% PEN +20.00% uranium in focus.
  • YAL +7.77% progress on potential transaction.
  • AD8 +3.78% reopening trade.
  • GNC +3.77% conference presentation.
  • APA +4.64% completes $1bn syndicated loan facility.
  • PSQ +5.96% change in substantial shareholder.
  • SYA -6.06% change in director’s interest.
  • BRN -5.00% tech slide.
  • PTX -13.64% PTX CellPryme-M presentation.
  • FFX -10.77% fall out continues from Leo Lithium demerger.
  • BEN -7.19% banks getting whacked.
  • WBC -6.11% a day to forget.
  • WSA – IGO takeover legally effective.
  • IPO of the Day Southern Palladium (SPD) +27.00% good debut today.
  • Speculative Stock of the Day: Rimfire Pacific (RIM) +22.22% significant Ni, Co and Pt drilling results at Currajong.

In the News

  • Platinum Asset Management (PTM) FUM fell from $19.76bn at the end of April to $19.58bn by the end of May.
  • Sims (SGM) expects FY22 underlying EBIT in the range of $750-770m.High metal prices and improved metal volumes have provided the main drivers of improvement over the FY21 result of $368m. If guidance is achieved that would be an improvement close to 95%.
  • United Malt Group (UMG) reiterates FY22 underlying EBITDA guidance of $115-140m.
  • IFM acquires 15% stake in Atlas Arteria (ALX) at 810c and seeks information to assess if it can submit a bid.
  • Boral (BLD) appoints Vik Bansal CEO. Bansal is currently the CEO of InfraBuild.
  • Fonterra (FSF) -has announced it will allocate up to $50m to an on market buy back.

Economic News/Bond Markets

  • Macquarie is increasing variable home loan interest rates by 0.5%.
  • National Australia Bank has pencilled in two additional 50 basis point rate rises by the Reserve Bank in July and August.
  • Jim Chalmers says a windfall profit tax is not on the cards to deal with the energy crisis

Asian Markets

  • Japan’s economy contracted less than initially estimated. GDP shrank an annualised 0.5% in the three months through March.
  • Capital spending fell at a non-annualized pace of 0.7% vs initial estimate of a 0.5% gain
  • Private consumption rose 0.1% from the previous quarter; first estimate was flat
  • Net exports declined 0.4%, unchanged from the initial reading
  • Inventory contribution to GDP was 0.5% vs initial estimate of 0.2%.
  • China approved its second batch of games this year following a months-long freeze. China’s tech stocks jumped as the government’s latest batch of new game approvals

US and European Headlines

  • European markets opening slightly higher by around 0.8%.
  • Credit Suisse issues a profit warning for Q2., cites Ukraine and rate hikes.
  • Musk Twitter financing talks have stalled.
  • Ray Dalio said central banks across the globe will be required to cut interest rates in 2024 after a period of stagflation constrains their economies.
  • Merkel denies appeasing Putin over Ukraine.
  • Trafigura warns oil prices could reach ‘parabolic state’ in threat to economy.
  • Marko Kolanovic, JP Morgan’s chief global markets strategist and co-head of global research, believes the U.S. economy is strong enough to handle oil prices as high as $150 a barrel. In a recent note, Kolanovic speculated the index would end the year around 4,800, still on par with all-time highs hit on Jan. 4. His top call remains energy.
  • The Atlanta Federal Reserve’s GDPNow tracker is now pointing to an annualized gain of just 0.9% for the second quarter, down from an estimated 1.3% increase less than a week ago.
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