ASX 200 took an ugly turn today falling 119 points to 7196 (-1.6%). No real reason, slight weak lead from US, no Asian session. US futures eased slightly but stop losses and maybe Powell’s testimony kicked us lower. Losses across all sectors, Banks under serious pressure, NAB down 1.4% and CBA off 1.6% with the Big Bank Basket down to $170.57 (-1.5%). MQG toppling 2.7% with insurers also in trouble. QBE down 1.3% and the fund managers sloppy, MFG giving back some recent gains falling 6.2%. Industrials in trouble too, consumer stocks eased back, WOW and COL down around 1.2%, WES a similar amount with retail stocks falling, JBH down 1.7% and APE off 1.5% %. Travel stocks taking a plunge, FLT down 3.8% and WEB off 3.0%. Healthcare slumped into ICU led by CSL off 0.6% and COH down 1.7%. REITs in trouble, GMG off 1.5% and SGP down 3.3%. Tech in the seller’s sights too WTC off 4.0% and XRO minus 4.4%. The All–Tech Index fell 3.0%. Resources were sold off aggressively with BHP down 2.4% and FMG falling 2.2%. Gold miners fell, NCM down 1.3% and oil and gas lost ground. Coal stocks drifted lower. Lithium plays were mixed with winners and losers. In corporate news, DEG fell 1.8% as it bought into a neighbouring project, GOR fell 8.3% on production issues, JLG dropped 11.9% on a business update and ERD jumped 60.3% on a NBIO. Nothing on the economic front, although Treasurer Jim Chalmers said the new RBA governor would be named in July. Did not rule Lowe out. Asian markets quiet with China and HK closed. Much fuss about Biden’s dictator comments though. Japan eased. 10-year yields steady at 3.97%. Dow futures down 49 points. NASDAQ futures down 47 points. And continuing under pressure ahead of BoE.

HIGHLIGHTS

• Winners: LRS, CTT, AGY, KMD, NWH, ADT, TLX
• Losers: JLG, DYL, GOR, MGH, MP1, RSG, RMS
• Positive sectors: Nothing
• Negative sectors: Everything.
• High 7309 Low 7187 Big range.
• Big Bank Basket: Hit to $170.57 (-1.5%)
• All-Tech index: Down 3.1%
• Gold steady at $2854
• Bitcoin:  Rallies to US$30268
• Aussie Dollar: Slips to 67.60c
• 10-Year Yield: Steady at 3.98%.
• Asian markets: Japan up 0.1%, China and HK closed for Dragon Boat Festival day.
• US Futures: Dow down 49 Nasdaq down 47. Powell in focus. Again.
• European markets set for a much weaker start. BoE today.

MAJOR MOVERS

• LRS +11.6% going gangbusters.
• CTT +9.1% bouncing higher again.
• LTR +1.4% roar snuffed out.
• ADT +2.1% Vares update.
• FWD +11.3% Rio deal.
• MEI +7.3% shooting star today.
• MDR +8.7% strategic review.
• REX +12.3% buyers back.
• AHI +38.9% trading update.
• JLG -11.9% business update.
• GOR -8.3% production issues.
• MFG -6.2% leverage to markets.
• FCL -1.8% profit taking.
• MSB -3.9% profit taking.
• DGL -8.1% continuing to stumble lower.
• EBR – trading halt pending a capital raise at 91c to raise $30m. SPP to come.
• 88E -12.5% no news. Yet.
• Speculative Stock of the Day: Eroad (ERD) +60.8% raid from Volaris with unsolicited NBIO proposal at 130c. Volaris has bought 17.3% from institutions. Harry Kane time.

COMPANY NEWS

• Lynas Rare Earths (LYC) – Received a $13.5m government grant to develop a new leach circuit project at its Mt Weld site in Western Australia, aimed at processing apatite-rich ore and increasing recoveries of rare earth elements.
• Gold Road Resources (GOR) – Revised its production guidance for the Gruyere mine, projecting annual production between 320,000 and 350,000 ounces, down from the previous forecast of 340,000 to 370,000 ounces. The company cited issues with production drills’ reliability and utilisation, as well as significant rain affecting ore and waste mining, as the reasons for the lower expectations.
• De Grey Mining (DEG) – Officially confirmed its agreement to acquire a 50% stake in Novo Resources’ Becher gold project in Western Australia. DEG will invest approximately $25m over the next four years in the project.
• Stockland (SGP) – Estimates a distribution of 14.4 cents per Ordinary Stapled Security for the six months ending June 30, 2023, in line with previous guidance.
• Northern Star Resources (NST) – Announced that its board has given approval for the $1.5bn expansion of the Kalgoorlie gold mine.
• Helloworld (HLO) – Plans to acquire Express Travel Group for $70m. The acquisition is scheduled to be finalised in early August.
• Best & Less Group (BST) – BBRC has issued a third supplementary bidder’s statement and a notice of variation for its takeover bid. The bidder has extended the closing date for the offer to June 30, 2023, and provided an update on leadership changes within BLG. The bidder intends to deliver dividends to BST shareholders at the maximum acceptable level, considering the needs of the business.
• Equity Trustees (EQT) – Announced a strategic review of UK and Northern Ireland Business.

ECONOMIC & OTHER HEADLINES

Characteristics of Australian Business – Key statistics

• During the year ended 30 June 2022, 38% of businesses reported having experienced a skills shortage, compared to 24% for the year ended 30 June 2020.
• 22% of businesses reported having experienced a cyber security incident(s), compared to 8% for the year ended 30 June 2020.
• 70% of businesses reported having a preventative measure in place to address cyber security threats.

ASIAN MARKETS

• China and HK closed today for a holiday.
• Fallout from Biden calling Xi a ‘dictator’ continues.
• Indian stock market surges as foreign funds buy into national growth story.

US AND EUROPEAN HEADLINES

• BoE decision today. Rate rise expected. Again. Maybe 50bps.
• European futures set to open around 0.5% lower. Yellen speaks in Paris today.
• UK government debt hits 100% of GDP for the first time since ‘Runaway’ was in the charts. Even before I was born.
• Modi in US for full state visit.
• Chinese spy facilities in Cuba are ‘serious concern’, says Blinken.
• Turkey looking at raising rates by 1000bps. Yes, no typo.
• Ukrainian energy minister said renewal of five-year transit contract with Russia to supply Europe was unlikely.

And finally…..

Clarence

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