ASX 200 closed down 36 to 7115 (0.5%) in a volatile session as the SVB rattled confidence. Despite a US futures rally (Dow Futures up 384 as we write), the index remained under pressure all day. Asian stability and China comments from Li and Xi failed to dispel the uneasy feelings. Banks were under pressure as bond yields fell hard and Goldman Sachs and others walked back aggressive moves by central banks in the wake of the SVB implosion. The Big Bank Basket dropped to $168.54 (-0.95%) with MQG off 1.4% and insurers tumbling as yields fell, QBE down 2.7% (has rallied hard) and SUN off 2.1%. Money managers also in the doghouse, PPT down 4.9% and CGF off 3.1%. Industrials under pressure, TLS down 1.0%, WOW off 1.1% and QAN falling 0.5%. ‘Old skool’ platforms in demand, CAR up 0.5% post successful capital raising and REA rallying 1.3%. Healthcare eased slightly and REITs fell with GMG down 0.7% and GPT off 1.1%. Resources were mixed, gold miners rallied hard as bullion rose again in Asia on safe haven buying, NCM up 2.9% and NST up 5.0%. Lithium stocks remain depressed, PLS down 2.3% and LTR down 3.2%. Iron ore better, BHP up 1.8% and Oil and gas stocks also better led by WDS up 0.3%. On the corporate front, many small tech companies confessed to their SVB exposure which didn’t amount to much in the scheme of things. NEU had a great day following the FDA tick of approval up 18.5% and WGX rallied 13.4% on a Big Bell operations update. Nothing on the economic front today. Asian markets mixed, Japan down 1.4% and HK up 2.3% with China up 0.9%.

HEADLINES

• Winners: NEU, CMM, RMS, RRL. SLR, TIE, NST, RNU
• Losers: PPM, JDO, MAF, WBT, PGF, AGY, NIC
• Positive sectors: Iron ore. Gold miners. Oil and gas.
• Negative sectors: Banks. Lithium. Industrials. REITS. Healthcare.
• High 7151 Low 7072
• Big Bank Basket: Falls to $168.54 down 0.95%
• All-Tech index: Down 0.8%
• Gold pushing ahead to $2825
• Bitcoin: Rallies to US$22,333.
• Aussie Dollar: Steadies to 66.68c
• 10-Year Yield: Falls to 3.52%.
• Asian markets: mixed, Japan down 1.4% and HK up 2.3% with China up 0.9%.
• US Futures: Dow up 380 Nasdaq up 205

MAJOR MOVERS

• CMM +15.04% broker upgrades post results last week.
• SLR +7.61% NST +5.02% BGL +4.39% gold miners rally hard.
• APX +2.60% starting to make a move higher.
• REX +5.07% very low volume.
• OBM +12.50% good solid move higher.
• AGY -5.30% lithium stocks on the nose again.
• BET -12.77% resumes weakness.
• PPM -7.89% JDO -6.96% neo banks under pressure
• BLG -16.00% capital raising – placement and entitlement issue at 6c.
• Speculative Stock of the Day: Neuren Pharma (NEU) +  good volume and that 12th March date we have talked about gave the good news we had hoped with US approvals and milestone payment triggers. The gate is now open for more as commercialisation will gather pace.
• Above Average Volumes: ADR, HMN, THL, WOT, OEL

COMPANY NEWS

• Carbon Revolutions (CBR) – The CEO has said that the carbon fibre wheel maker can extend the range of an EV by 5-10% with the weight savings from the wheels.
• Evolution Mining (EVN) – Ernest Henry operations impacted by regional weather last week. All personnel were safely removed from the mine due to water entering mine workings and the operations have suspended production activities.
• Nitro (NTO) says SVB collapse will not affect Potentia bid.
• Carsales.com has raised $380m after it successfully completed the institutional component of its fully underwritten entitlement offer.
• Fletcher Building (FBU) has been served with a shareholder class action in the Supreme Court of Victoria.

ECONOMICS & OTHER NEWS

• Goldman Sachs no longer expects the Federal Reserve to lift interest rates this month following the policy announcements made by US regulators in response to the collapse of Silicon Valley Bank.
• Local Three-year yields are now on track for their biggest decline since October.

ASIAN MARKETS

• Xi calls for Chinese self-reliance in technology. New PM Li said is that he was confident in the economy, which rebounded in January and February. Construction still shrinking though. Crucial to growth ambitions.

• Li says the US and China should translate the outcomes of the Biden-Xi summit last November into “concrete actions.” Li says achieving 5% GDP growth will not be easy.
• Gold kept rising in Asia — after jumping 2% on Friday — as investors flocked to havens following the collapse of a US bank. ANZ says the Federal Reserve pausing its policy tightening this year should lower the US dollar and leave US real yields intact, lifting the gold price in the coming quarters.
• HSBC is reported to be exploring a bid for UK arm of SVB.
• Japan’s benchmark 10-year government bond yield dropped to 0.32%, the lowest level since since the BOJ unexpectedly doubled the yield cap to 0.5% on Dec. 20.

US AND EUROPEAN HEADLINES

• Biden expected to update congress on Monday morning on SVB latest.
• The US and European Union are seeking a preliminary agreement on the supply of so-called critical minerals used in electric vehicles.
• UK Chancellor of the Exchequer Jeremy Hunt will announce £20bn ($37bn) for domestic carbon capture projects over the next 20 years in his budget this week.
• Silver Lake set to take over software company Qualtrics in $12.5bn deal.
• U.S. regulators on Sunday shut down New York-based Signature Bank, a big lender in the crypto industry, in a bid to prevent the spreading banking crisis. Signature is one of the main banks to the cryptocurrency industry, the biggest one next to Silvergate, which announced its impending liquidation last week.

And finally…..

A cowboy asked if I could help him round up his 28 cows.
I said, ”sure, just call it 30 cows.”

Clarence

XXXX