Wednesday 10th April – Australian Market Wrap – Up 24 Resources Shine. | Beeks Downunder-Because not all financial news is boring!

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ASX 200 kicks another 24 points higher to 7849 (+0.3%) as resources took centre stage. Iron ore stocks back in demand on China hopes, BHP up 0.7% with FMG up 1.9%. Lithium stocks also doing well on a price bounce in Asian trade, PLS up 1.3%, MIN up 0.5%, with LRS up 14.3%. Gold miners missed out despite higher bullion prices, NST down 1.5% and EVN off 0.8%. Oil and gas stocks weaker again, WDS down 0.9% and KAR falling 0.9%. Coal stocks in demand. Banks were slightly easier, with the Big Bank Basket down to $208.61 (-0.51%). CBA the culprit falling 0.8%. REITs gained as yields eased, GMG up 1.6%. Tech stocks fell, with WTC crumbling 3.0%. Industrials firmed, TLS up 0.5% and WES up 1.0%. SVW a standout, with mining exposure up 1.6%. Healthcare stocks better, with CSL up 1.2%. In corporate news, PRU fell 2.6% after Silvercorp accepted the offer for ORR. BBT in a trading halt after a 20.0% jump on potential scrip bid. On the economic front, we had dwelling commencements again somewhat disappointing, and Fitch downgraded the Chinese outlook to negative on debt rise. In Asian markets, Japan slid 0.4%, China down 1.1%, and HK headed 1.4% higher. 10-year yields back to 4.11%. Dow and NASDAQ Futures up 13 and 12 points, respectively.

HIGHLIGHTS

Winners: NXL, SMR, ZIP, NAN, LTR, DVP
Losers: IMU, WGX, RPL, MSB, OBM, WTC, IRE
Positive sectors: Iron ore. Healthcare. REITs. Lithium. Base Metals. Coal.
Negative sectors: Oil and gas. Insurers.
ASX 200 Hi 7869 Lo 7832
Big Bank Basket: Slips to 208.61(0.5%)
All-Tech Index: Up 0.1%.
Gold: Steady at $3560
Bitcoin: Falls to US$69241
10-year yields fall to 4.12%.
AUD: Rises to 66.21c
Asian markets mixed Japan down 0.4% and HK up 1.4%. China down 1.1% though.
Dow Futures up 13 Nasdaq futures up 12

MAJOR MOVERS

ZIP +5.8% kicking higher again.
SMR +6.3% coal stocks in demand.
LTR +4.3% rumours remain of T/O.
ANN +4.1% broker upgrades.
SBM +19.6% Sorowar Pigiput mineralised zone confirmed.
VUL +13.5% thin trade.
CHN +13.6% base metal exposure.
JMS +8.5% Manganese exposure Broker note helps.
WGX -4.1% gold stocks under pressure.
MSB -3.3% profit taking.
WC8 -1.6% new discovery at Tabby Tabby.
BUB -9.4% Burton coal resource update.
Speculative Stock of the Day: Forrestania Resources (FRR) +107.1% gold samples up to 49g/t from fieldwork at Ada Ann.

COMPANY NEWS

ECONOMIC AND OTHER HEADLINES

Merger rules tightened by Treasurer Jim Chalmers.

Dwelling Commencements.

Key statistics

In seasonally adjusted terms:

Total dwelling commencements rose 1.3% to 38,397 dwellings.
New private sector house commencements rose 3.0% to 23,597 dwellings.
New private sector other residential commencements fell 2.7% to 13,738 dwellings.
The value of total building work done fell 1.0% to $34.2b.

Reserve Bank of New Zealand keeps official cash rate unchanged at 5.5% in April 2024, citing need for tight monetary policy to address inflation, despite headline inflation easing to 4.7% in Q4 2023, above target range of 1% to 3%.
Bridgewater’s Bob Prince says Fed rate-cutting hopes are ‘off track’.
US CPI beckons.Core 0.3% and 3.7% for the year.
China’s Tianqi Lithium’s $4bn bet on Chile at risk of backfiring.
Fitch revised China’s outlook to negative from stable, saying the government is likely to pile on debt as it seeks to pull the economy out of a real estate-driven slowdown.