ASX 200 drops 49 points

ASX 200 followed US futures down on Moody’s downgrade, off 49points at 8295 (0.6%). Banks tried to hold off the selling, but the Big Bank Basket rose to $267.97 (+0.3%). MQG fell 3.4% as it went Ex-dividend. Financials slid, ZIP off 6.2% and PPT down 2.9% with PNI off 2.4%. Insurers unchanged, REITs fell as bond yields pushed up a little to 4.51%. GMG down 0.6% and SCG off 0.3%. Industrials eased back too, CPU down 1.0% and WTC falling 2.1% with retail and travel stocks down. DMP fell 2.6% as CEO ANZ resigned. Resources pounded by lower commodity prices, BHP off 2.4%, RIO down 1.3% and FMG being crunched 4.9%. Lithium stocks depressed, PLS off 10.0% as the shorts came roaring back in LTR too off 16.6%. MIN fell 8.8% after announcing a new chair. Gold miners were better on haven buying, NST up 1.9% and NEM bouncing 2.5%. Coal stocks hit hard as NHC downgraded guidance, off 7.1% with WHC down 3.4%. Uranium stocks also seeing fallout, PDN down 4.1% and the oil and gas sector easing back too. In corporate news, MYX in a trading halt pending more information on the Cosette bid, EOS jumped 14.7% on a Euro contract, LLC down 0.4% after signing JV with the King. On the economic front, Chinese data mixed. Asian markets eased back in line with US futures.

HIGHLIGHTS

Winners: MAH, QAL, CMM, RRL, PXA, EVN, AFG
Losers: LTR, CU6, PLS, MIN, WA1, CIA, NHC
Positive Sectors: Banks. Gold miners.
Negative Sectors: Tech. Iron ore. Oil and gas. Coal. REITs
ASX 200 Hi 8345 Lo 8284
Big Bank Basket: Higher at $267.97 (+0.1%)
All-Tech Index: Down 0.4%
Gold: Rises to $5027
Bitcoin: Steady at US$103049
10-year yield rises to 4.50%.
AUD: Eases to 64.01c
Asian markets slid, Japan off 0.7% with HK unchanged%, China down 0.3%
Dow futures down 330 Nasdaq futures down 290.

MARKET MOVERS

CMM +3.4% OBM +3.1% gold recovers.
360 +1.5% continues higher.
OFX +16.4% ASX price query. Results due tomorrow.
EOS +14.7% European contract win.
GG8 +6.1% corporate presentation.
ALX +0.4% Citi says could be a target.
LTR -16.6% big volume, ASX query.
PLS -9.9% lithium under pressure.
MIN -8.8% new chair.
NHC -7.1% coal downgrade.
CIA -7.7% iron ore slips.
DMP -2.6% CEO ANZ steps down.
EIQ -25% trading halt pending announcement.
APX -15.8% profit taking.
29M -9.1% resources under pressure.
PMT -8.0% continues lower.
Speculative Stock of the Day: XAM +54.9% Takeover offer at 8c.

ECONOMIC AND OTHER NEWS

Chinese Industrial output climbed 6.1% on year in April, slowing from the prior month but far exceeding the median estimate in a survey of analysts.

Retail sales growth, a key gauge of consumption, also weakened from March to 5.1%, according to figures published by the National Bureau of Statistics on Monday, below economists’ projection.
The urban jobless rate fell slightly to 5.1% in April, while growth in fixed-asset investment slowed to 4% in the first four months of the year. China’s new home prices dropped at a faster pace in April.
On Monday, 10-year Treasury yields climbed four basis points to 4.52% and their 30-year equivalents rose about six basis points to 5.00%.

Germany drops opposition to nuclear power in rapprochement with France .
UBS deploys AI analyst clones as clients opt for research in video form.
Scott Bessent warns of maximum tariffs as US takes tougher line on trade talks.
Japan will not resort to tax cuts funded by additional debt issuance, Prime Minister Shigeru Ishiba said on Monday.

And finally…..