ASX 200 lost another 40 points to 7716 (-0.5%) ahead of Fed meeting and US CPI. Once again, resources were the biggest culprits as iron ore remains under pressure, BHP fell 0.6%, and RIO off 1.5% with base metals falling, S32 continues to soften down 0.8%, and PLS falling 2.9%. Uranium stocks on the nose as spot prices head lower, BOE down 5.2%, DYL down 5.6%, and NXG falling hard. Gold miners were mixed to weaker, NST down 0.7% and NEM off 0.5% with gains in EMR. Oil and gas slightly higher as WDS put on 2.6% on a broker upgrade. Banks were a little sloppy with the Big Bank Basket down to $214.33 (-0.5%). CBA down 0.7%, and NAB down 0.4%. MQG off 0.7%, with REITs slipping, SCG off 0.6% and GPT falling 1.4%. Industrials weaker again, WES off 1.3% with utilities slipping, ORG off 0.9% and Tech off slightly. The All-Tech Index down 0.6%. Retail mixed as JBH up 1.9%, with PMV off 0.5%. BAP had a good day, up 1% as brokers speculated that there could be competition for the company. In corporate news, SUL appointed a new chair. Talk on the impending GYG float with one research house questioning the valuation. On the economic front, Chinese prices rose less than expected in May. The CPI rose 0.3% from a year earlier. In Asia, Japan slipped 0.7%, HK dropped 1.1% and China up 0.3%. 10-year yields steady at 4.29%. Dow Futures up 30 points. NASDAQ Futures up 22 points. 

HIGHLIGHTS

• Winners: HLS, SPR. EMR, SSM, PGC, LTR, DRO
• Losers: NIC, IMM, IPX, DYL, NXG, BOE, STX. WA1
• Positive sectors:  Staples. Oil and gas.
• Negative sectors: Banks. Iron ore. Lithium. Uranium. REITs.
• ASX 200 Hi 7741 Lo 7699
• Big Bank Basket: Falls to $214.33 (-0.5%)
• All-Tech Index: Down 0.6%
• Gold: Higher at $3495
• Bitcoin: Falls to US$67403
• 10-year yields steady at 4.29%
• AUD: Rises to 66.20c.
• Asian markets lower, China up 0.2%, HK off 1.1% and Japan off 0.7%
• Dow futures up 30 NASDAQ Futures up 22

MAJOR MOVERS

• DRO +4.2% launched to highs.
• JDO +3.9% index inclusion for CSR.
• BAP +1.0% second bid speculation.
• SPR +7.6% picks back up again.
• EMR +6.1% finding friends.
• CKA +1.0% Infrastructure HV advances to next stage.
• DXB +8.0% higher and higher.
• HLS +8.6% defensive?
• EVS +14.9% Trading halt pending corporate activity.
• NIC -7.6% changes in Indonesian permitting.
• SUL -1.1% Sally Pitkin promoted to chair.
• IMM-7.0% cleansing notice.
• IPX -6.8% profit taking.
• BOE -5.2% hits support.
• NXG -5.5% uranium fails.
• CHN -4.1% sell-off continues.
• AIS -6.1% Canbelango copper drilling intersects.
• NTU -14.0% coming back to earth.
• Speculative Stock of the Day: Reach Resources (RR1) +41.7% Niobium and exceptional REE results.

COMPANIES

ECONOMIC AND OTHER HEADLINES

• China’s consumer prices rose less than expected in May and factory prices dropped for the 20th month in a row, fuelling concerns over persistently weak demand.

• The consumer price index rose 0.3% from a year earlier, the National Bureau of Statistics said. Factory-gate prices extended a deflation streak that started in late 2022.
• Just one in 10 UK workers were classified as “engaged” at work, which means putting in discretionary effort on the tasks they’re asked to do, according to Gallup research

• EU to impose multi billion-euro tariffs on Chinese electric cars.
• Fed meeting with Dot Plots. Economists expect the Fed will adjust the path of its pivotal “dot plot” upward. The impact of that would mean the grid likely will point to fewer than the three interest rate cuts indicated for 2024 in March.
• US CPI tonight. Economists expect CPI to show just a 0.1% increase from April, though that still would equate to an aggregate annual rise of 3.4%. Core PCI is projected to show a 0.3% monthly gain and a 3.5% annual rate.
• European markets expected to open slightly higher. Uk and German data drops this morning.

And finally…..

Two men are sitting drinking at a bar at the top of the Empire State Building, when the first man turns to the other and says

“You know, last week I discovered that if you jump from the top of this building, the winds around the building are so intense that by the time you fall to the 10th floor, they carry you around the building and back into a window”.

The bartender just shakes his head in disapproval while wiping the bar.

The second guy says, “What, are you nuts? There’s no way that could happen.

“No, its true,” the first man says. “Let me prove it to you.”

He gets up from the bar, jumps over the balcony, and plummets toward the street below.

As he nears the 10th floor, the high winds whip him around the building and back into the 10th floor window and he takes the elevator back up to the bar.

He meets the second man, who looks quite astonished. “You know, I saw that with my own eyes, but that must have been a one time fluke.”

“No, I’ll prove it again,” says the first man as he jumps again.

Just as he is hurtling toward the street, the 10th floor wind gently carries him around the building and into the window.

Once upstairs he urges his fellow drinker to try it.

“Well, why not.” the second guy says, “It works. I’ll try it.” He jumps over the balcony, plunges downward passes the 11th, 10th 9th, 8th, floors. . . . . and hits the sidewalk with a SPLAT.

Back upstairs the bartender turns to the other drinker and says, “You know Superman, you’re a real jerk when you’re drunk”.

Clarence

XXXX