The ASX 200 rose 167 points to 7510 (2.3%) in a Tuesday turnaround. Buoyed by hopes that the tariffs are still negotiable and the US futures showing a good start at least. The market rallied across the board with a special shout out to resources with BHP up 2.3% and FMG gaining 3.5%. Gold miners were also better despite bullion falling as quarterlies beckon. NST ran 5.0% ahead, EVN bounced 5.0% and NEM up 2.7%. Lithium stocks rallied on hopes for more EV stimulus in China, PLS up 5.4% and LTR up 8.1%, short covering helped. In the uranium space, BOE saw shorts in play up 11.0% and WDS rallied 3.3% with STO up 5.4%. Coal stocks also did well, WHC up 8.7%. Banks were solid with the Big Bank Basket up to $237.69 (+2.2%). CBA up 2.8% and MQG bouncing another 3.8%. Financials generally much stronger, GQG up 6.2% and XYZ up 8.6%. ZIP announced a $50m buyback and rallied 6.7%. RETs firmed,  GMG up 0.4%. Industrials were strong across the board, WES up 3.0% with JBH up 3.4% and REA doing well up 4.6%. SGH rallied 4.3% with healthcare stocks also in demand, COH up 1.2% on tariff relief, SIG up 5.3%. Tech also doing well, WTC up another 5.0% with XRO up 4.3% and the All–Tech Index up 4.5%. In corporate news, GYG said it was on track for dividend payment. WPR also better on capex required to convert stores with VEA. In economic news, Consumer sentiment fell, the RBNZ has a temporary governor in Christian Hawkesby. Asian markets recovered although China was muted after talking tough on a fightback. 10 -year yields rallied to 4.24%.

HIGHLIGHTS

  • Winners: VUL, BOE, TEA, MAC, WHC, XYZ, MSB
  • Losers: DHG, WA1, HMC, BAP, AMC, AMP, JHX
  • Positive Sectors: Everything.
  • Negative Sectors: Nothing.
  • ASX 200 Hi 7510 Lo 7356 Closing close to highs.
  • Big Bank Basket: Rallies to $232.68 (+2.2%)
  • All-Tech Index: Up 4.5%
  • Gold: Rises to $4966.
  • Bitcoin: Rises to US$79248
  • 10-year yield rises to 4.24%.
  • AUD: Rallies to 60.55c
  • Asian markets: Japan up 5.8%. China up 0.7% and HK up 0.2%
  •  Dow futures up 612 Nasdaq up 180

MARKET MOVERS

  • VUL +12.2% lithium bounce.
  • BOE +11.0% shorts covering.
  • XYZ +8.6% US tech moves.
  • NTU +23.8% rare earth exposure.
  • BTI +11.7% NTA backing.
  • GOR +4.4% Gruyere update.
  • ZIP +6.7% buy back announced.
  • GYG +3.7% on track to pay first dividend.
  • PME +6.4% Barrenjoey upgrades.
  • DHG -5.1% update on unregistered securities register.
  • MIN -2.0% the hits are getting bigger.
  • JHX -2.5% still in the doghouse.
  • Speculative Stock of the Day:  LM1 +50.0% data base review at Marda.

ECONOMIC AND OTHER NEWS

  • Confidence among Australian consumers has hit a six-month low. confidence compiled from surveying consumers about family finances, the economy and home buying, plunged 6%, down from 95.9 in March, to 90.1 in April, its lowest level in six months.
  • The Queensland government will provide initial funding of $30m for gold producer Evolution Mining’s project to build an energy storage facility at Mount Rawdon.
  • Deutsche Bank is the first forecaster to call for a half percentage point cut by the Reserve Bank of Australia in May.
  • BlackRock is dialling back its exposure to risk assets, including US and Chinese equities.
  • New Zealand said its recovery from recession has been made more difficult by the new sweeping tariffs.
  • The People’s Bank of China set the so-called fixing at 7.2038 per dollar on Tuesday, the weakest since September 2023.
  • China pledged to retaliate against Donald Trump’s latest tariff threat and stepped up efforts to support the market.
  • Vietnam’s benchmark index lost 5.6% after coming back from a holiday. Thailand’s benchmark SET fell over 5% to its lowest level since March 2020, data from LSEG showed.
  • Indonesia’s benchmark Jakarta Stock Exchange Composite Index fell 9.35%, resuming trading at 9.30am local time after a temporary circuit breaker was triggered.
  • Samsung Electronics were up about 3% in early trading at 54,500 Korean won ($37.08) after the South Korean technology giant said it forecasts better-than-expected profit for the first-quarter.
  • Prices for used Teslas drop in US and Britain.
  • US tariffs threaten almost $2tn of investment pledges by global companies.
  • BlackRock’s Larry Fink warns US economy is ‘weakening as we speak’.
  • And finally, Boris Johnson has been attacked by an ostrich in a wildlife park.

And finally….

Clarence

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