ASX 200 finished down 96 points at 7100 (-1.3%) with another day of losses, the third in a row. 2.1% for the week. Once again, no real reason apart from Powell and the lack of Chinese stimulus perhaps, 10bps not really cutting it. Banks did a substantial nosedive with the Big Bank Basket dropping to $167.86 (-1.6%). CBA fell 1.6% and ANZ off 2.1%. MQG also falling hard with insurers in the red too. Industrials fared slightly better in the bloodbath, WOW and COL kept their heads above water, TLS only fell 0.5%, and BXB and other industrials managed small (ish) losses. Healthcare was mixed with CSL unchanged with SHL down 1.0%. REITs under pressure GMG down 2.6% and SGP off 2.2%. Tech eased with the All–Tech Index down 1.1% as WTC fell 0.1% and XRO dropped 1.8%. Resources held up relatively ok, BHP down 1.2% and RIO off 1.1% with lithium stocks mildly weaker but some bright spots there. Gold miners fell as bullion dropped, NST down 2.5% and DEG off 3.8%. Oil and gas though was smacked hard, as crude continued to head lower in Asian trade, WDS off 4.6% and STO down 4.3%. In corporate news, COH fell 3.5% on issues with an acquisition in the UK, DLI soared 30.1% on some ‘stunning ‘drill results. Nothing on the economic front today. Asian markets are weaker with China back trading after Dragon Boat Festival. Dow futures down 136 points. NASDAQ futures down 68 points.

HIGHLIGHTS

  • Winners: LRS, CTT, ADT, LLL, RSG, TYR, FBU. RF1
  • Losers: SDR, SLX, TLX, GOR, INA, MAD, WDS.
  • Positive sectors: Utilities
  • Negative sectors: Everything else. Banks especially.
  • High 7196 Low 7091 ASX 200 down 2.1% for the week.
  • Big Bank Basket: Lower at $167.86 (-1.6%)
  • All-Tech index: Down 1.1%
  • Gold steady at $2856
  • Bitcoin:  Steady at US$30005
  • Aussie Dollar: Slips to 66.99c
  • 10-Year Yield: Higher at 4%.
  • Asian markets: Japan down 1.4%, China down 1.3% and HK off 1.9%
  • US Futures: Dow down 136 Nasdaq down 68.
  • Siemens in focus in Europe on Energy business.

MAJOR MOVERS

  • LRS +16.7% no real news but brokers upgrading.
  • CTT +6.3% bucks trend in tech and retail.
  • ADT +4.8% Vares project update.
  • EDV +2.0% defensive still on update.
  • MI6 +21.6% secret Aston lithium project update.
  • 4DX +10.0% book squaring.
  • BUB +8.3% some warming.
  • ONE -3.3% business update.
  • SLX -7.0% slipping away again.
  • GOR-5.3% broker downgrades
  • 360 -4.1% Tech sell-down.
  • STO -4.3% oil price falls.
  • MSB -4.1% profit taking.
  • CU6 -7.3% COMBAT trial begins in US.
  • Speculative Stock of the Day: Delta Lithium (DLI) +30.1% after stunning drill results in its other project Yinnetharra in the Gascoyne lithium province in WA. Including 33m @1.9% Li2O from 218m

COMPANY NEWS

  • Sezzle Inc (SZL) – Reported an 18% increase in income to $11.6m in May, but also recorded a net loss of $1m during the same period.
  • APA Group (APA) – Announced a final distribution of 29c for the six months ending in June, bringing the total distribution for the year to 55c, in line with guidance and marking a 3.8% increase compared to 2022.
  • Endeavour Group (EDV) – CEO Steve Donohue, revealed that two years after the company’s split from Woolworths, it is eyeing further acquisitions in the wine sector as distressed wine assets increase.
  • HMC Capital (HMC) – Raised $800m for its inaugural Last Mile Logistics Fund, with a significant investment of $300m from a local institutional investor. Although slightly lower than the initial $500m equity target.
  • Nickel Industries Ltd (NIC) – Announced the commencement of commissioning for its 70%-owned Oracle Nickel Project’s 380MW power plant in Indonesia’s Morowali Industrial Park. With the power plant now operational, production levels at the project are expected to steadily increase to about 130% of nameplate capacity.
  • EBR Systems (EBR) – Raised  $35m through chess depositary instruments (CDI) on the ASX at 91c, representing a 7.1% discount to its last traded price. The funds will be utilised to support the upcoming commercial launch of its heart arrhythmia treatment.
  • Cochlear (COH) – Planned acquisition of Danish hearing implants business, Oticon, worth $170m, was hit by the UK regulator, which raised competition concerns and prohibited the purchase of Oticon’s UK bone conduction implants business.
  • Delta Lithium Limited (DLI) – Announced impressive drilling results from its Yinnetharra Lithium Project in Western Australia. The project has identified six mineralised pegmatites, with lithium mineralisation found from the surface to a depth of 350m.
  • QANTAS (QAN) – The ACCC has issued a draft determination re-authorising the alliance between Qantas and Emirates for a further five years.

ECONOMIC & OTHER HEADLINES

ECONOMIC & OTHER HEADLINES

  • Nothing official today.
  • ANZ economists are calling for Australian inflation data for May to fall to 6% year-on-year when the data is released next Wednesday.
  • AMP’s Shane Oliver has warned Australia faces a potential recession in the next 12 months as the economy shrinks.
  • AUD has worse week since March. Bitcoin has best week since March, fuelled by all the talk of ETFs.

ASIAN MARKETS

  • Japan’s annual inflation rate unexpectedly decreased to 3.2% in May, missing market forecasts, with slower growth in furniture prices and declining fuel and water charges. Core inflation also dropped to 3.2%, remaining above the Bank of Japan’s 2% target for the 14th consecutive month.
  • Jibun Bank Japan Services PMI unexpectedly declined to 54.2 in May, falling from the previous month’s record high of 55.9.
  • TikTok operating chief Pappas to step down after five years.
  • Singapore’s core inflation rate cooled in May to the lowest in 11 months, helped by a deceleration in transport and food prices.

US AND EUROPEAN HEADLINES

  • UK Retail sales -2.1% Y/Y versus forecast of -2.6%
  • Chancellor Jeremy Hunt to meet with banks to discuss mortgage rises.
  • President Biden said there aren’t real consequences to his remarks calling his Chinese counterpart a “dictator.”
  • Germany locks in more US natural gas as it shuns Russian supply.
  • Siemens Energy in trouble on turbine update.
  • US to lend $9.2bn for Ford battery plants in clean energy push.
  • Janet Yellen sees diminishing risk for the US to fall into recession, and suggested that a slowdown in consumer spending may be the price to pay for finishing the campaign to contain inflation.
  • Ah! Vienna has been named as the world’s most liveable city. Melbourne #3, Sydney #4.

And finally…..

Clarence

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