ASX 200 rallies off lows to close down only 40 points at 7932 (0.6%). Broad based losses following US weakness Friday. Banks saw sellers emerge with the Big Bank Basket down to $226.16 (-0.3%). ANZ and NAB the worst hit, MQG lost 0.5% and QBE off 1.1% with financial generally weaker. REITs slipped slightly as bond yields rose. Industrials weaker but no massive dramas, defensive supermarkets held up ok. Tech eased but not huge issues. In resources, lithium and uranium stocks fell, PDN off 1.7% on quarterly report and PLS slid 3.3% with S32 clobbered 12.6% on WA environmental issues and write downs. Gold miners mixed but generally holding up well. EVN up 0.5% and NEM up 0.3%. Oil and gas saw a sell off as WDS fell 2.1% after announcing a large US acquisition. STO dropped 0.9% and coal stocks slid, WHC down 4.0% on its production numbers. In corporate news, IFL rose 5.0% on a business update, DRO dropped another 20.9% on its quarterly report. Nothing on the economic front locally. The PBoC cut rates slightly today although no real help to Chinese equity markets, mixed with HK up 0.9%, and China lost 0.9%. 10-year yields fell to 4.31%.

HIGHLIGHTS

• Winners: IRE, PRN, IFL, QAL, AIZ
• Losers: DRO, S32, NXL, SPR, PYC, ABB
• Positive sectors: Supermarkets. Mining services.
• Negative sectors: Lithium. Base metals. Banks. Tech.
• ASX 200 Hi 7964 Lo 7902
• Big Bank Basket: Lower at $226.16 (-0.3%)
• All-Tech Index: Down 0.8%
• Gold: Falls to $3608
• Bitcoin: Runs to US$67,855
• 10-year yields rise to 4.31%
• AUD: slips to 66.64c.
• Asian markets mixed again, HK up 0.9%, Japan down 1.1% and China lost 0.9%
• European markets set for a slightly positive start.
• Dow futures up 30 NASDAQ Futures up 79

MAJOR MOVERS

• IRE +9.3% trading update. M&A rumours help too.
• PRN +5.7% free cash flow above guidance.
• IFL +5.0% quarterly business update.
• ORN +6.3% quarterly report.
• DSE +10.8% investor presentation.
• TTT +5.4% stirring again.
• ILU -3.6% change in substantial holding.
• LTM -4.1% lithium depressed.
• PLS -3.3% shorts get stuck in again.
• AD8 -2.8% tech sell off.
• DRO -20.9% mega ouch on quarterly result.
• S32 -12.6% WA environmental issues and write downs.
• SPR -4.8% quarterly report sees profit taking.
• HFR -11.1% trading halt – clarification coming.
• ASN -11.1% drilling program at Mary Springs for lead and critical metals.
• Speculative Stock of the Day: AUK +50% announced it has entered into a strategic procurement framework with a Chinese company Yangtze River Silk Road.

COMPANIES

ECONOMIC AND OTHER HEADLINES

• Michael Stutchbury, the editor-in-chief of The Australian Financial Review (AFR), has called time on the role after almost 13 years.
• James Chessell, also a former business editor and Europe correspondent at the Financial Review, has been appointed to succeed Stutchbury.
• The People’s Bank of China cut a key short-term policy rate for the first time in almost a year. The seven-day reverse repo rate is lowered by 10 basis points to 1.7%.

• Ryanair reports sharp profit decline as fares set to fall.
• European markets expected to open higher. The latest Spanish consumer confidence figures today. Gracias.

And finally…..

Clarence

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