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ASX 200 fell another 101 points to 7666 (-1.3%) in lacklustre trade compounded by nasty CPI number that put rate rises back on the cards. Banks were smacked down, with ANZ down 2.5% and the Big Bank Basket down to $20587 (-1.9%). MQG smashed 1.3% and insurers off with IAG in a class action down 3.1%. ASX fell 1.5%, with fund managers under pressure. REITs also feeling the pain, SGP off 1.5% and SCG down 2.5%. Industrials too under pressure, WES continuing to slide down another 1.1% with WOW and COL falling between 1.3-2%. Tech slipped, and retail down again. JBH off 1.5%, and ALL falling 3.0% despite a bullish report from Macquarie. In resources, crunch day for BHP with its Anglo bid in the UK. The stock held firm. FMG down 3.6%, and RIO sold down 1.5% as iron ore fell for the third day in Asia. Base metals mixed, lithium escaping the wrath and gold miners continued to buck the negativity. Oil and gas stocks down with uranium mixed. In corporate news, IAG facing a class action over pricing for loyal customers, NWS unveiled significant changes falling 0.3%, LLC sold a US business to kick off its restructure, down 2.4%. In economic news, CPI came in hotter than expected and shelved any hopes for a quick rate cut. Asian markets lower, Japan down 1.0%, China up 0.1% and HK down 1.9%. 10Y yields spiked to 4.40% on the CPI news. AUD steady. BHP asks for more time. Again. Dow Futures down 174 points. NASDAQ Futures down 81 points. 

HIGHLIGHTS

  • Winners:  DRO, MAC, WGX, APM, BLX, COE, VUL
  • Losers: NEU, RMS, CNI, ZIP, CTT, STX, ADT
  • Positive sectors: Gold miners.
  • Negative sectors: Banks. Insurers. Healthcare. REITs. Industrials.
  • ASX 200 Hi 7761 Lo 7661. Iron ore futures down again.
  • Big Bank Basket: Smashed to $205.87 (-1.9%)
  • All-Tech Index:  Down 0.6%
  • Gold: Better at $3543
  • Bitcoin: Higher at US$68647
  • 10-year yields spiked to 4.39%
  • AUD: Steady at 66.47c.
  • Asian markets mixed with Japan down 0.6%, China up 0.2% and HK down 1.5%.
  • Dow futures down 0.4% NASDAQ Futures down 0.3%

MAJOR MOVERS

  • DRO +10.7% Middle East tensions.
  • FPH +3.7% upgrades.
  • APM +5.0% nice to see.
  • VUL +4.0% finding friends again.
  • AVH +10.0% solid US bounce.
  • AGE +6.8% Samphire exploration drilling recommences and project update.
  • EXR +9.5% good news week.
  • NWS -0.3% reshuffle.
  • RMS -7.3% WGX +6.5% Merger deal proposed but knocked back.
  • NEU -9.3% big breather!
  • CTT -5.8% question marks still.
  • ADT -4.6% capital raise at 415c.
  • PWH -3.3% small volume.
  • SFX -8.1% Thunderbird drilling.
  • Speculative Stock of the Day: DES +26.3% Acquisition of Rare earth project in NT.

ECONOMIC AND OTHER HEADLINES

Monthly CPI

  • The monthly CPI indicator rose 3.6% in the 12 months to April. Above expectations for a small fall to 3.4%.
  • The most significant price rises were Housing (+4.9%), Food and non-alcoholic beverages (+3.8%), Alcohol and tobacco (+6.5%) and Transport (+4.2%).
  • Economists warn rates may have to rise.
  • The International Monetary Fund now expects China’s economy to grow 5% this year, raising its forecast from 4.6%. The Fund expects the momentum to continue, raising its gross domestic product forecast for next year to 4.5% from 4.1%.
  • BYD unveiled a new hybrid powertrain capable of travelling more than 2,000 kilometres (1,250 miles) without recharging or refuelling, intensifying the EV transition war.
  • Orange juice crisis prompts search for alternative fruits.
  • Chevron deal clears hurdle as Hess investors back $53bn takeover.
  • Food delivery apps rack up $20bn in losses in fierce battle for diners.
  • Porsche has revealed a new hybrid version of its iconic 911 sports car for the first time, with a starting price of US$164,900. The new 911 Carrera GTS can accelerate from 0 to 60 mph in 2.9 seconds.
  • BHP – Anglo crunch day. BHP willing to discuss reverse break fee payable by BHP. It believes a further extension of deadline is required.

And finally….

Clarence

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