The ASX 200 bounced back after sliding to a two-month low during trade closing up 20 points to 7111 (+0.3%), as sentiment improved after the House of Representatives passed the bill to raise the debt ceiling with bipartisan support. Resources and base metals clawing back gains from yesterday’s losses, BHP +0.1%, RIO +0.4% and FMG up 0.8%. Lithium mixed, but mostly down MIN down 3.6% and PLS down 1.6%. Gold miners are today’s winners as the likelihood of another Fed rate hike increases. NST 3.1%, NCM 2.4%, EVN 0.6%. Financials showing modest gains, with the Big Bank Basket down to $166.17 (-0.1%), CBA, flat WBC off 0.4% and NAB up 0.3%. Tech stocks didn’t stay down for long, with the All-Tech Index up 0.7%, SQ2 +2.3% XRO +1.9% and WTC +0.9%. Industrials were mixed and uninspiring, ALL rose 1.3%, SEK up 0.6% and REA off 2.0%. Defensives did ok with WOW and COL up. Energy sector up 0.4%, despite oil dropping for a third consecutive session. In corporate news, NMT jumped 21.9% after providing an update on its joint venture for lithium-ion battery recycling. LGL rose 16.1% after raising full-year guidance. AGY dropped 6.3% despite announcing that the Rincon Lithium project is now partially operational. In economic news, Australian retail sales were unchanged at $35.3bn in April, indicating that retail has hit a plateau. Caixin China’s general manufacturing PMI unexpectedly rose to 50.9 in May from 49.5 in the previous month, while exceeding consensus, the latest results highlights the patchy economic recovery amid insufficient demand and deflation risks. Asian markets are up, Japan’s Nikkei rises on bargain hunters up 0.9% and HK up 0.6% with China up 0.3%. Australia 10Y yield up 3.62%. Dow Jones futures down 21 points and Nasdaq futures down 11 points.

HEADLINES

  • Winners: PDN, ASB, DEG, BOE, PRU, RMS, WGX.
  • Losers: IMU, A4N, AGY, IEL, PRN, ARU, CIA
  • Positive sectors: Healthcare. Telcos. Oil and gas. Gold miners. Insurers. REITS. Tech.
  • Negative sectors: Lithium. Banks.
  • High 7132 Low 7078 Debt ceiling bounce.
  • Big Bank Basket: Drifts to $166.17(0.1%)
  • All-Tech index: Up 0.7%
  • Gold Higher at $3013
  • Bitcoin: Slips to US$26850
  • Aussie Dollar: Slips to 65.11c
  • 10-Year Yield: Drifts lower to 3.64%.
  • Asian markets: Japan’ rises on bargain hunters up 0.9% and HK up 0.6% with China up 0.3%.
  • US Futures: Dow down 21 Nasdaq down 11.

MAJOR MOVERS

  • PDN +11.0% Namibia looks a non-event.
  • BOE +4.7% uranium firms.
  • DEG +4.9% gold miners finding some support.
  • GOR +4.0% PRU +4.7% bouncing back a little after horror show.
  • NMT +21.9% Primobius technical and commercial update.
  • LGL +16.1% trading update.
  • ARU -5.4% follows HAS down.
  • IMU -9.1% first combination patient in PD-1 Trials
  • AGY -6.3% Rincon update.
  • IEL -6.2% Canada test continues to weigh.
  • HAS -13.8% falls again on cost blowouts and funding issues.
  • AMI -10.7% placement and entitlement offer.
  • ZIP -5.6% comes undone.
  • Speculative Stock of the Day:  Neurizer (NRZ) +39.2% Signed an agreement with Meijin Energy (MEI) to use its IP for 2 sites in China to produce Hydrogen. MEI will pay NRZ US$25m as a licence fee. A recent private placement to one shareholder raised $1m at 7c.

COMPANY NEWS

  • BHP – admitted it had underpaid employees to the tune of $430m over more than 10 years. The miner said the issue related to the accounting treatment of public holidays; annual leave had been deducted wrongly since 2010. BHP said it appeared the same error had occurred in the accounts of OZ Minerals, which was acquired by the miner earlier this year.
  • Neometals Ltd (NMT) – Provides an update on Primobius, its joint venture for lithium-ion battery recycling. Recent trials have yielded excellent results, supporting their goal of meeting upcoming EU Battery Regulations.
  • Vicinity Centres (VCX) – Divests 50% stake in Broadmeadows Central shopping centre to Nikos Property Group for $134.5m, above book value. The sale will strengthen Vicinity’s balance sheet and allow them to focus on strategic investments.
  • ZIP Co Ltd (ZIP) – Successfully defended against a trademark infringement claim by Firstmac Ltd. Firstmac’s claim was dismissed, and Zip’s cross-claim led to the removal or cancellation of Firstmac’s trade mark.
  • Lynch Group (LGL) – Raises its full-year earnings guidance to $42m – $43m, up from the previous range of $36m – $40m, citing a 5% expected revenue increase driven by strong performance in sale or return stores.
  • Argosy Minerals (AGY) – Rincon Lithium Project has advanced to semi-continuous operational status, producing approximately 17.5 tonnes of battery quality lithium carbonate with a product quality of up to 99.9%.
  • Omni Bridgeway (OBL) – Completed the sale of a participation in Fund 1 to Gerchen Capital Partners, receiving an initial payment of US$38.0m.
  • Imugene (IMU) – Dosed the first patient in a clinical trial combining their PD1-Vaxx immunotherapy with Roche’s atezolizumab in non-small cell lung cancer.
  • Kingsgate Consolidated Ltd (KCN) – Announced that significant gold intercepts were discovered close to Chatree Gold Mine. Ongoing drilling has revealed promising results, including intervals with high gold content.
  • Aurelia Metals Ltd (AMI) – Completed its institutional component of a $40m equity raising.
  • Growthpoint Properties Australia (GOZ) – Inside transaction: Chair Fay discloses purchase of 54k shares.
  • Develop Global Ltd (DVP) – Reported significant results in its Sulphur Springs zinc-copper project in Western Australia. Metallurgical test work has led to a 32% increase in fresh ore resources, which will contribute to more profitable production of concentrates.
  • Transurban (TCL ) – announced that its financing vehicle has refinanced $1bn of its $2.65bn syndicated bank debt facility.

ECONOMIC & OTHER HEADLINES

Retail Trade – Key statistics

The April 2023 seasonally adjusted estimate:

  • Remained relatively unchanged 0.0% month-on-month.
  • Rose 4.2% compared with April 2022.

Retail Trade

  • Private new capital expenditure (capex) rose 2.4% in the March quarter of 2023 and was 6.3% higher than pcp last year. 
  • The S&P/ASX 200 is among the worst-performing equity markets among its peers this year, climbing just 0.7%. That compares with an 8.9% gain for the US benchmark S&P 500, a 6.3% rally by Europe’s STOXX 600, and an 18.5% jump for Japan’s Nikkei 225.

ASIAN MARKETS

  • Chinese Caixin manufacturing data showed an expansion in activity, exceeding forecasts of a small contraction. China Manufacturing PMI for May 2023 a much improved 50.9 against expected 49.5, and prior 49.5.

US AND EUROPEAN HEADLINES

  • US House passes debt ceiling bill in crucial step to avert historic default.
  • German Retail Sales up 0.8% M/M v 1% forecast.,
  • Elon Musk is back as world’s richest person as LVMH falls. Musk’s fortune is now valued at about US$192.3bn, according to the index, while LVMH’s Arnault is about US$186.6bn.
  • Reality bites: Maybe a little.
  • Europe is exporting coal after a mild winter has created a glut. Over 1m tons re-loaded and shipped to India and Africa.

D

  • Franklin Templeton to buy Putnam Investments for more than $1bn.
  • Amazon will pay the Federal Trade Commission more than US$30m to settle allegations of privacy lapses in its Alexa and Ring divisions. As part of the proposed settlement, Ring is required to delete any customer videos and data collected from an individual’s face, referred to as “face embeddings,” that it obtained prior to 2018.

And finally….

This bloke keeps ringing me up singing “stand and deliver” i keep telling him he’s got the wrong number but hes adamant

“What do we want?”
“A cure for chocolate addiction”
“When do we want it?”
“After eight”

Clarence

XXXX