ASX 200 unravelled 147 points to 79548 (1.78%) as support gave way and banks got smacked. A six-month low. 2.8% for the week. Big falls in the banks as stops hit and profits taken. CBA down 3.3% and MQG falling 5.2% following US banks lower. The Big Bank Basket down to $242.00 (-2.7%). Financials hit too with insurers off as Alfred waxes and wanes. SUN down 2.0% and MPL off 1.4%. REITs also under fire despite little movement in yields, GMG falling %, CHC down % and DGT off %. Industrials looking like the GoT Red Wedding with WES off 1.6%, ALL down 3.5% and SGH down 1.2%.  Tech also fell in a heap with the index off 3.2% and WTC down 3.2% as Joe Aston took aim in the AFR. Retail and travel slid too, CTD down 2.8% and LOV down 3.3%. Resources tried to hold up in some sectors, iron ore miners doing relatively ok, BHP down only 0.6% and RIO positive. Gold miners saw profit-taking. Not a surprise when other losses have to be paid for. NST down 2.2% and EVN off 3.5%. Oil and gas stocks slid, WDS down 2.1% and uranium stocks saw the short sellers get stuck in again, BOE down 5.0% and DYL down 2.9%. In corporate news, IFL saw two bids upped to 500c and rose 9.9%. PNV is having some bullying issues with the CEO and fell 13.0%, looks like he is gone. SGR has sold its Brisbane Casino to the Chinese. ORI rose 0.5% after warning on restructuring costs. On the economic front, more data out of China, record exports ahead of tariffs. Asian markets mixed, Japan down 2.1%, HK up 0.6% and China unchanged. 10-year yields up to 4.40%.

HIGHLIGHTS

  • Winners: IFL, DRO, WAF, LFG, VSL, VUL
  • Losers: PNV, PNI, PGC, AD8, CMM, REA, AEF
  • Positive Sectors: Nothing
  • Negative Sectors: Everything
  • ASX 200 Hi 8093  Lo 7946
  • Big Bank Basket: Falls to $248.82 (-2.7%)
  • All-Tech Index: Up 0.5%
  • Gold: Up to AUD$4610
  • Bitcoin: Falls to US$87827 – US reserve will not buy more crypto.
  • 10-year yield falls to 4.40%.
  • AUD: Rises to 63.06c
  • Asian markets: Japan down 2.1%, HK up 0.6% and China unchanged
  • Dow futures up 63 Nasdaq up 89

MARKET MOVERS

  • IFL +9.9% two bidders at 500c.
  • DRO +5.4% defence spending winner?
  • NXL +1.8% change of director’s interest.
  • WAF +4.7% kicks again after upgrade.
  • LAU +17.1% ceasing to be substantial shareholder.
  • MAU +9.6% outstanding intercepts – 51m at 3.6g/t Au.
  • PNV -13.0% C-Suite issues.
  • BOE -5.0% shorts pushing down.
  • LRV -9.9% profit taking.
  • AD8 -6.7% continues to fall.
  • GMG -4.8% big falls from recent cap raise.
  • EVN -3.5% profit taking.
  • MQG -5.2% MAF -3.7% following US investment banks lower.
  • Speculative Stock of the Day: EGN +38% Takeover offer response. 30.5c cash.

ECONOMIC AND OTHER NEWS

  • In January 2025, household spending: Rose 0.4% month-on-month on a current price, seasonally adjusted basis. Rose 2.9% compared with January 2024.
  • China’s exports grew 2.3% on year in Jan-Feb, well short of market estimates. That compares with growth of 10.7% in December, 6.7% in November, 12.7% in October, following a soft rise of 2.4% in September.
  • Customs data showed imports fell 8.4% year-on-year in the first two months of 2025. Analysts had expected imports to expand 1% year-on-year.
  • Donald Trump has signed an executive order to set up a strategic Bitcoin reserve and a stockpile of other digital assets. The reserve will be capitalized with Bitcoin already owned by the federal government that was forfeited as part of criminal or civil proceedings and the US will not sell any of the cryptocurrency deposited into it.
  • China “brought much needed stability to a changing and turbulent world,” Foreign Minister Wang Yi said at an annual press briefing in Beijing.
  • Trump restrains Doge as concern mounts over scale of job losses.
  • SpaceX Starship rocket explodes minutes after launch. Quote of the day to SpaceX spokesperson Dan Huot, “Unfortunately, this happened last time too, so we’ve got some practice now.”  
  • TSMC is ‘not afraid’ of losing US chip subsidies.
  • Non- Farm Payrolls – 170k expected 4% headline number.

Have a good weekend

Clarence

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