The ASX fell another 12 points to 8802, well off lows, as resources were slammed hard. The market finished well off the lows of the day as US futures recovered from heavy early losses. Banks held up again, CBA up 1.3% and the Big Bank Basket up to $297.93 (+0.9 % ). MQG dropped 0.4%, and financials were mixed — ASX up 1.6% and GQG off 1.7% again. Insurers saw small gains, SUN up 0.6% and MPL up 1.2% on an acquisition. Industrials were mixed, TLS rose 1.5% with BXB recovering slightly, WOW and COL rose, and TCL up 0.8%. Tech stocks fell, XRO off 0.9% and WTC continuing to fall off 1.4%. The All-Tech Index was down 1.7%. Healthcare stocks were mixed — CSL fell 0.4% despite a briefing on vaccines this morning, RMD up 0.6%, and PME slipping 1.4%.

Resources tumbled, BHP off 0.5% with FMG down 2.5%, though well off the lows. Gold miners saw small losses even as bullion pushed higher. Lithium stocks fell hard, PLS down 3.3% and MIN off 3.4%. Rare earths saw heavy losses, LYC off 3.3% and ILU down 3.6%. Second-liners like ARU fell 5.7%, well below the SPP placement price of 28c.

In corporate news, TYR appointed Nigel Lee as new CEO, GMG fell 3.4% on an AGM update. WDS looking to boost cashflow.

Nothing on the economic front here. Asian markets crumbled in places — the Nikkei dropped the most since April as tech valuations came under scrutiny.

Asian markets – HK down 0.3% China down 0.1% and Japan down 3.0% 10-year yields 4.31%. US Futures off lows, Nasdaq down 52. Dow up 56.

HIGHLIGHTS

  • Winners: CKF, LOV, BXB, SMI, JMS, SLX, TLS
  • Losers: SRL, BRE, EOS, MEI, MP1, PDN, 29M, IEL
  • Positive Sectors: Banks. Defensives.
  • Negative Sectors:  Resources – rare earths. REITs.
  • ASX 200 Hi 8825   Lo 8734
  • Big Bank Basket: Rises to $297.93 (+0.9%)
  • All-Tech Index: Down 1.7%
  • Gold: steady at $6115
  • Bitcoin: Bounces to US$102007
  • AUD: Eases to 64.98c.
  • In Asian markets – HK down 0.3% China down 0.1% and Japan down 3.0%
  • 10-year yields lower at 4.31%.
  • US futures – Dow up 15 Nasdaq down 125
  • European markets set to open lower.

MARKET MOVERS

  • BXB +2.2% bounced back.
  • LOV +2.2% broker upgrade.
  • MI6 unchanged – Presentation.
  • CKF +2.6% did someone say KFC?
  • ILA +5.8% change of director’s interest.
  • SRL -15.3% volatility continues.
  • BRE -12.3% rare earths.
  • EOS -11.5% DRO -7.5% defence under attack.
  • ARU -5.7% discount to SPP and placement price.
  • 4DX -5.9% Response to ASX ‘please explain’.
  • AR1 -70.6% reinstated to trade on ASX.
  • ANG -23.2% trading update.
  • AIS -17.2% copper slips.
  • LDX -14.9% Foster research.
  • SGQ -12.4% rare earth meltdown.
  • IEL -8.2% shorts back in charge.
  • BOC -15.5% copper under pressure.
  • Speculative Stock of the Day:  MRZ +571% as reinstated post-merger and RE project.

ECONOMIC AND OTHER NEWS

  • US Supreme court case on tariffs.
  • Zohran Mamdani was elected the 111th mayor of New York in a historic victory that will put an avowed democratic socialist in charge of the city. Democrats had wins elsewhere too.
  • SoftBank plunged more than 14% Wednesday amid a broader drop in Asian AI-linked companies, tracking declines in U.S. peers, as investors turned wary of stretched valuations. SoftBank has a controlling stake in U.K-based Arm Holdings, whose chip designs power mobile and AI processors.
  • US government heads to longest shutdown as Trump resists calls to talk.
  • Norway suspends $2.1tn oil fund’s ethics rules to avoid selling Big Tech stakes.
  • Canada’s Carney pledges C$141bn to counter Trump’s trade war.
  • Rachel Reeves insists she will not resign if she raises income tax in the Budget.
  • Long-time Bitcoin holders have offloaded around 400,000 Bitcoin over the past month, an exodus of about US$45bn that’s left the market unbalanced.

And finally….

Clarence

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