The ASX 200 kicked off May with a 19-point gain to 8146. Some Asian markets closed today as are some European markets. US futures showing a very positive session, given the results from Meta and Microsoft. Banks held firm with CBA up 0.4% and the Big Bank Basket flat at $265.81 (0.2%). Other financials did ok too, PTM rose 11.4% as Kerr Neilsen sold out to LSF. Merger talks are on. HUB rose 2.3% and PNI up 0.9%. MQG continue to miss out closing down 0.3%. REITs were positive, with a focus on data centres, given the Azure results from Microsoft. GMG up 3.4% and DGT up 6.3%. Industrials also in favour, WTC rallied 6.6% and XRO up 3.2% as tech found big buyers. REA up 0.4% and retail stocks continuing to find buyers. JBH up 0.8% and BAP up 2.4% with travel stocks better too. WOW and COL better too as results cheer.  Resources were in a world of pain. LYC fell 3.4% on possible moves from China, iron ore stocks dropped, BHP down 0.9% and PLS under pressure. Gold miners were mixed, NST fell another 0.8% with EVN off 1.3% as copper rallied after a sobering day yesterday. OBM bounced 3.0% and SPR rose 2.0%. Uranium stocks back in demand after a day’s rest. DYL up % with BOE up % and PDN up %. Oil and gas stocks fell, WDS down 2.6%. In corporate news, PTM was a focus with JDO chopped down to size on an update. DXB rose 41.9% on a good licensing deal. In economic news, the BoJ kept rates unchanged. Asian markets were disrupted by holidays in China. Japan up 1.1%. 10-year yields at 4.19%.

HIGHLIGHTS

  • Winners: HMC, BOE, WTC, DGT, DTL, REG, PYC
  • Losers: JDO, BRN, SX2, WGX, DRO, IPX, WA1, VUL
  • Positive Sectors: Data centres. Retail. Tech. Industrials.
  • Negative Sectors: Iron ore. Rare earths. Oil and gas.
  • ASX 200 Hi 8153 Lo 8110 – Relatively narrow range.
  • Big Bank Basket: Flat at $265.81(+0.2%)
  • All-Tech Index: Up 2.3%
  • Gold: Steady at $5058
  • Bitcoin: Steady at US$95073
  • 10-year yield rises to 4.19%.
  • AUD: Eases to 63.93c
  • Asian markets:  Japan up 1.1%, China and HK closed.
  • Dow futures up 225 Nadaq up 265

MARKET MOVERS

  • HMC +8.2% DGT +6.3% data centres back in focus.
  • WTC +6.6% tech rally.
  • DTL +6.3% final director’s interest.
  • BOE +7.3% rally continues.
  • HLS +4.1% completion of sale of Lumus.
  • DXB +41.7% licensing deal.
  • AMA +21.0% quarterly business update.
  • RAC +14.8% first patient dosed safely in RC220 Phase 1 Trial.
  • PTM +11.4% LSF looking at merger.
  • WOW +1.2% results cheer.
  • DUG +11.7% trading update.
  • JDO -16.9% chopped on loan growth disappointment.
  • DRO -6.0% profit taking.
  • IPX -5.9% profit taking.
  • SX2 -6.8% capital raising.
  • WA1 -5.4% board changes.
  • AZY -10.3% conference presentation.
  • Speculative Stock of the Day: ADN +78.6% achieves HPA breakthrough.

ECONOMIC AND OTHER NEWS

  • The Bank of Japan held rates at 0.5%, in line with expectations of analysts. The central bank expects growth to moderate while inflation falls between 1.5% to 2% in fiscal year 2025 ending March 2026.
  •  Donald Trump acknowledged that his sweeping tariff program had risked imperiling him politically, but said he would not rush deals to appease nervous investors during a town hall on Wednesday.
  • Trump calls China the ‘chief-ripper-offer’.
  • Nvidia CEO Jensen Huang said that “China is not behind” in artificial intelligence, and that Huawei is “one of the most formidable technology companies in the world.”
  • US and Ukraine sign natural resources deal.
  • Maccas results in focus. Earnings per share of $2.66 and revenue of $6.09bn and McFlurry
  • Goldman’s Waldron says US’s early trade deals to ‘serve as a template’.
  • 7–Eleven owner opens books wider to Couche-Tard’s $50bn bid.
  • Norway’s oil fund aims to save $400mn of trading costs using AI.

And finally

Clarence

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