ASX 200 finished near lows down 88 points at 6932 (-1.3%). Plenty of nerves pre the CPI tonight as banks tried to rally before being ambushed again. The Big Bank Basket fell to $165.76 (-1.2%) with CBA off 1.2% and MQG dropping 3.5%. Insurers also easier despite yields rising on bonds. QBE down 2.0% and IAG off 2.6%. Fund managers fell again, GQG down 1.2% and MFG down 4.2%. Industrials continued to slip-slide away, WES under more pressure down 2.5%, GMG off 2.8% and TLS falling 1.6%. Small losses across others with CAR and SEK steady. Healthcare mixed as CSL flat, but the rest of the sector weakened, SHL down 1.3%. Tech stocks mixed with XRO rising 4.0% but others falling away, SQ2 down 5.7%, WTC down 1.5% and the All–Tech Index down 0.9%. In resources, it was bad but a rally into the close helped as RIO dropped 1.3% on lower commodity prices, FMG down 0.5% and BHP flat. Lithium and base metal stocks under pressure again, off lows at the close though PLS down 1.8%, MIN down 1.9% and IGO falling 2.4%. S32 a casualty too falling 4.2%. Oil and gas stocks eased as WDS fell 1.6%, STO down 1.5% and SOL off 1.6%, WHC down 1.3%. Gold miners fell led by NCM and NST with EVN down 2.2%. In corporate news, BUB announced a new USA distribution deal rising 9.2%, TER rose 1.9% on a business update, HLS up 2.1% on a new substantial shareholder in John Wylie and BRG reaffirmed guidance rising 1.0%. In economic news, we had business turnover numbers from ABS and CPI from China showing the effects of lockdowns. Asian markets mixed again, Japan off 1.3%, China 1.1% and HK flat. 10-year yields 3.65%.

End of Day Podcast – Friday, June 10

Headlines

  • Winners: LKE, XRO, ERA, CXO, HLS, PPH, SM1, TER
  • Losers: RMC, ARU, PBH, SGM, LYC, SQ2, CHN, PAN
  • Positive sectors: Toll Roads
  • Negative sectors: Everything else.
  • High 7006 Low 6927
  • US CPI.
  • Big Bank Basket: Whacked to $165.76 (-1.2%)
  • All-Tech index: Falls 0.9%
  • Gold: Better at $2593.
  • Bitcoin: Steady at US$30,089
  • Aussie Dollar: Lower at 71.24c
  • 10-Year Yield:Higher at 3.65%
  • Asian markets: mixed again, Japan off 1.3%, China up 1.1% and HK flat.
  • US Futures: Dow up 40 Nasdaq up 56

Major Movers

  • TER +1.91% company update.
  • XRO +4.03% bargain hunters.
  • HLS +2.13% John Wylie takes a 5.15% stake.
  • SM1 +2.03% part of the infant formula chain.
  • LKE +5.66% one lithium stock rallying.
  • BUB +9.24% major US supply agreement.
  • QPM +4.7% change of director’s interest.
  • PSQ +6.05% patient fee performance May
  • BYE +2.78% oil price moves.
  • PNR -18.33% placement of large stake by JV partner.
  • BOE -4.82% uranium off the boil.
  • LYC -5.72% rare earths on the nose.
  • SQ2 -5.69% BNPL issues.
  • VUL -5.16% lithium under pressure.
  • Speculative Stock of the Day: Pearlgulliron (PLG) +32.00% not great volume but better than anything else. Response to ASX query yesterday.

In the News

  • Atlas Arteria (ALX) – has knocked back IFM Investors’ demand for confidential information.
  • Breville (BRG) – has reconfirmed that it expects full-year 2022 earnings before interest and tax to be in line with previous guidance and market consensus of about $156m.
  • AGL Energy (AGL) – has extended the outage at its Loy Yang A coal power plant in Victoria by at least six weeks.
  • Virgin Australia is considering an IPO as early as next year.
  • AMA Group (AMA) CEO Carl Bizon discloses purchase of 300k shares.
  • Westpac Banking (WBC) considering a new Capital Notes offer. May include reinvestment offer for certain Capital Notes 2 holders.
  • Sims (SGM) settles class action for $29.5m.
  • BNPL sector to now fall under national credit laws according to Financials Services Minister Stephen Jones.

Economic News/Bond Markets

Business turnover numbers today:

  • The largest increases were in Information media and telecommunications (8.0%) and Accommodation and food services (7.6%).
  • Through the year, the largest rises were recorded in Mining (40.3%) followed by Transport, postal and warehousing (32.6%).
  • Construction saw the largest percentage fall across the industries, decreasing by 8.9% in April. Turnover generally fell for residential building businesses, as material and labour supply issues, as well as higher than average rainfall, resulted in slower progress on construction projects.

Asian Markets

  • China’s consumer price index rose 2.1% year-on-year in May, data from the National Bureau of Statistics showed on Friday.
  • The figures are in line with expectations and the same as April’s growth.
  • The producer price index also rose, up 6.4% year-on-year, after an 8% gain in April.
  • Shanghai will lock down eight city districts this weekend to mass test millions of people.
  • South Korean truckers embarked on broader and more aggressive strike action on Friday, threatening to severely curtail shipments of raw materials for semiconductors and petrochemical products.

US and European Headlines

  • US CPI tonight – Economists are expecting year over year increases of 8.3% for the main index and 5.9% for the core index, which excludes food and energy prices.
  • European futures looking to open weaker again.
  • PGA Tour suspends 17 golfers for joining Saudi rival LIV.
  • State Street dismisses rumours of a Credit Suisse takeover. Calls rumours ‘rather stupid’.
  • Italian 10-year bonds at 3.72%. ECB is well behind the curve.
  • French central bank governor talks about ‘neutral rate’ of 1-2% on interest rates being needed.

Long weekend beckons. Double demerit points. Back Tuesday.

Clarence

XXXXX

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