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The ASX 200 rose 1 point to 7750 in quiet pre-budget trade. Good close in banks helped. A narrow trading range as ANZ and MQG went Ex Dividend. The Big Bank Basket up to $208.05 (+0.5%). Insurers tickled higher QBE down 0.1% and SUN up 0.4% with REITS slightly lower, GPT off 0.7% and SCG down 0.6%. Industrials mixed, WOW up 1.0% but REA off 1.6%, SVW fell 2.4% and WES up 0.8%. Tech stocks mixed too. XRO down 1.9% with WTC up 0.7% and the All–Tech Index down 0.6%. In resources, BHP pushing higher as FMG fell 0.6% and RIO dropped 0.8%. Lithium and uranium stocks falling hard in places, NXG dropped 11.7% with PLS off 1.5% and MIN down 0.9%. Gold miners mixed as DEG cap raise weighed on the sector. Oil and gas stocks are falling, WDS is down 1.1%, and BPT is up modestly. In corporate news, FBU has yet another profit warning, falling 10.9%, SXL fell 9.0% as part of the consortium pulled out. RMS upgraded its Mt Magnet outlook rallying 1.5% and SYA down 6.8% on drilling results in Canada. In economic news, plenty of leaks from the Budget due tomorrow night, NAB business survey was pretty much stable. Asian markets mixed, Japan down 0.3%, China unchanged and HK up 0.7%. 10-year yields 4.33%.

HIGHLIGHTS

  • Winners: JMS, VUL, BGL, BAP, HLI, WC8, IPH
  • Losers: NXG, FBU, WBT, DVP, MAH. JDO, LRS
  • Positive sectors: Banks. Healthcare. Industrials.
  • Negative sectors: Lithium. Oil and gas. Uranium.
  • ASX 200 Hi 7750 Lo 7722
  • Big Bank Basket:  Up to $208.05(+0.5%)
  • All-Tech Index:  Down 0.5%
  • Gold: Steady at $3566
  • Bitcoin: Falls to US$60967
  • 10-year yields steady at 4.33%.
  • AUD: Steady at 65.90c.
  • Asian markets benign, Japan down 0.1%, China unchanged and HK up 0.4%.
  • Dow futures up 1 NASDAQ Futures up 39
  • European markets opening better.

MAJOR MOVERS

  • JMS +12.1% manganese price play.
  • VUL +5.9% rally continues.
  • BAP +4.8% maybe PE target.
  • NXL +3.4% tech rally helps.
  • IPH +3.4% buy back and drops out of QIP race.
  • RDN +24.4% Andover attraction.
  • IRI +15.3% broker upgrades.
  • NXG -11.7% quarterly results due.
  • FBU -10.9% yet another downgrade.
  • WBT -8.7% slipping again.
  • FPR -5.7% business update.
  • INR -4.6% lithium eases back.
  • OBL -11.7% class action judgement Friday.
  • SXL -9.0% withdrawal of consortium proposal.
  • Speculative Stock of the Day: ERW +63.3%. good volume too. Identifies large pegmatite swarm at Andover West (near AZS).

ECONOMIC AND OTHER HEADLINES

  • Business conditions eased in April, while confidence remained steady albeit below average in the month, a NAB private survey showed. Business confidence was unchanged at +1 index point. Confidence deteriorated in retail, wholesale, mining, and finance, business and property.
  • Labour cost growth eased to 1.5% in quarterly equivalent terms (from 1.7%) and purchase cost growth also slowed to 1.2% (from 1.5%). LRS under some pressure following the end of the Colina drilling campaign.
  • The Australian government’s funding task for 2024/25 is expected to double to $100 billion, according to RBC Capital Markets.
  • China fires starting gun on $140bn debt sale to boost economy.
  • Russian President Vladimir Putin tapped a civilian economist as his surprise new defence minister on Sunday.
  • President Joe Biden will quadruple tariffs on Chinese electric vehicles and sharply increase levies for other key industries this week. Mostly symbolic to some extent, Chinese EVs were locked out of the US market years ago by existing tariffs, while solar firms mostly export to the US from overseas.
  • European markets expected to open slightly firmer.

And finally….

Clarence

XXX