ASX 200 kicks higher, just up 2 points to 8234 after losing momentum as the day wore on. US futures are up strongly on hoped-for details on US/China trade negotiations. Gold fell, miners under pressure with GMD down 5.7% and EVN off 3.7%. Base metals and lithium stocks are better, MIN up 8.3% and LTR roaring ahead, up 12.6%. S32 is also having a good day on CEO retirement. The stars were iron ore stocks on China hopes, BHP up 2.3% and RIO up 2.1%, with FMG only managing half that rise. Oil and gas stocks were also better, with WDS up 2.0% and KAR up 5.1%. Uranium stocks also firmed again. Banks were flat as NAB went Ex-dividend. Down 2.3% and the other three mixed. The Big Bank Basket is down to $263.16 (). MQG rose 2.1% as its run continued, GQG had a great day up 8.0%, and REITs were a little underwhelming. GMG rose 1.6% on a broker upgrade. Industrials mixed, WOW fell 1.5% after announcing price cuts, drug companies fell on news that Trump was going to cut drug prices in the US. In corporate news, DNL rose 2.0% as it sold the fertiliser distribution business to RIC. Nothing on the economic front. Asian markets were firm again. 10-year yields rose to 4.37%.

HIGHLIGHTS

  • Winners: LTR, MIN, GQG, PLS, IGO, KAR, DRO
  • Losers: BOT, NEU, TLX, CU6, BC8, GMD, HLS
  • Positive Sectors: Iron ore. Oil and gas. Uranium.
  • Negative Sectors: Gold miners. Drug companies. REITs.
  • ASX 200 Hi 8279 Lo 8233
  • Big Bank Basket: Lower at $263.16
  • All-Tech Index: Up 0.2%
  • Gold: Falls to $5094
  • Bitcoin: Rises to US$103852
  • 10-year yield rises to 4.37%.
  • AUD: Falls to 64.28c
  • Asian markets: Japan up 0.4%. China up 1.2% HK up 1.1%
  • Dow futures up 453 Nasdaq up 391

MARKET MOVERS

  • LTR +12.6% shorts covering perhaps.
  • MIN +8.3% HESTA sells out.
  • GQG +8.0% Indian ceasefire.
  • RF1 +3.4% weekly NTA.
  • KAR +5.1% oil price.
  • BOT -12.9% CU6 -8.6% NEU -9.6% Trump moves on drug pricing.
  • GMD -5.7% gold price falls.
  • RMS -5.6% SPR -5.4% bullion falls.
  • AVH -8.0% continues lower.
  • CGS -8.2% buyback update.
  • EVS +19.7% scheme of arrangement.
  • 29M +23.1% base metal bounce.
  • BGD +20.7% drilling expedited at Tolmer high- grade silver.
  • Speculative Stock of the Day: MHC +47.2% High grade gold and copper acquisition.

ECONOMIC AND OTHER NEWS

  • 8am in London expecting a US China press update.
  • Trump said on social media he intends to sign an executive order lowering the price of prescription medicines at 9 a.m. on Monday in Washington. Trump’s plan likely only affects the drugs up for price negotiations under the IRA, according to one analyst.
  • Drugmakers were the worst-performing sector in Japan on Monday, dragging the benchmark Topix lower despite hopes of a US-China trade deal.
  • Trump off to the Middle East to pick up his new plane.
  • US travelers are increasingly opting for road trips over flights. About 39.4m Americans will drive this Memorial Day weekend (26th May), up 3.1% from last year and the most in 20 years, according to the AAA.     
  • Trump vows to lower drug prices in the US by up to 80%.
  • World’s largest EV battery maker CATL to raise at least US$4bn.

And finally….

Clarence

XXXX