Day 5 – The ASX 200 fell another 176 points to 8901 (1.9%) as resources and banks came under pressure. Asian regional markets went into full panic mode with Korea down 11%, its largest move since the GFC. It had been a tear for some weeks and has now come undone. Resources were under serious pressure from the off. BHP down 3.5% with FMG off 3.0% and the gold miners down but not quite out. NST down 2.5% and EVN off 4.7%. Lithium stocks dropped, LTR down 3.2% and PLS off 1.3%. Copper stocks also falling hard, SFR down 2.9% and CSC down 2.2%. BSL bucked the trend as management said it was happy to chat to SGH! Uranium stocks dipped with PDN down 7.6% and BOE falling 8.4%. Oil and gas stocks were slightly lower, STO down 0.4%, BPT dipping 0.9% and VEA off 1.9%. WDS rose 0.9%.

Banks fell after safe haven status was revoked today. CBA down 1.2% and MQG falling 2.5% as the Big Bank Basket dropped to $ (%). ANZ a big casualty off %. Other financials also eased, with insurers sloppy. QBE down % and MFG seeing profit taking off %. Industrials were generally weaker, WES continued to fall, CSL lost another 1.6% with COH down 3.5%. QAN dipped 2.7% and retail stocks fell. FLT down 1.1% and JBH off 1.7%. Tech managed to hold up with XRO up 2.0% and WTC flat. The All-Tech Index down 0.6%.

In corporate news, EDV results underwhelmed off 3.5% and A1N jumped 4.4% as Kyle and Jackie seem to be heading for an expensive divorce!

On the economic front, GDP came in slightly better than the RBA had forecast at 0.8%. China’s National People’s Congress in focus.

Asian markets crushed, Korea off around 12%, Japan fell 3.9%, HK off 3.0% and China down 1.4%.

10-year yields steady at 4.75%

US Futures down DJ off 216 pts and Nasdaq down 200.

HIGHLIGHTS

  • Winners: SRL, CRN, A4N, EQR, SMR, EOS, MIA
  • Losers: MLX, TVN, SLX, ASL, LOT, FCL, CU6
  • Positive Sectors: None.
  • Negative Sectors: Everything else.
  • ASX 200 Hi 8959 Lo 8879 relatively narrow range.
  • Big Bank Basket: Falls to $297.66 (-1.7%)
  • All-Tech Index: Down 0.6%
  • Gold: Falls to $7372
  • Bitcoin: Steady at US$67806
  • 10-year yields: Steady at 4.73%
  • AUD: Slides to 69.96c on GDP.

MARKET MOVERS

  • SRL +15.7% volatility continues.
  • EQR +4.5% broker report.
  • EOS +3.8% drone exposure.
  • PME +1.7% bargain hunters.
  • SEK +1.8% defensive.
  • WIA +3.5% presentation.
  • SLX -10.1% uranium exposure.
  • MLX -10.8% tin falls.
  • LOT -9.3% PDN -7.6% uranium exposure.
  • SVL -8.2% silver falls.
  • Speculative Stock of the Day:  OD6 +68.5% acquisition of ultra-high-grade district-scale Fluorspar projects in Nevada.

ECONOMIC AND OTHER NEWS

  • Australian GDP came in better than forecast by the RBA up 0.8%
  • Household spending rose 0.3% in the quarter and 2.4% through the year. 
  • Discretionary spending rose 0.4% reflecting the expansion of Black Friday sales and strong attendance at sporting and concert events. 
  • Private investment increased for the fifth consecutive quarter, growing by 0.7% and contributing 0.1 percentage points to GDP. The household saving to income ratio increased to 6.9%, up from 6.1% in the September quarter.
  • Chinese official manufacturing purchasing managers index fell to 49 in February.
  • The composite PMI, a broader measure that tracks activity across manufacturing and services, dropped to 49.5 from 49.8 in January, the official data showed.
  • Gangnam style panic on the Korean market. Biggest two-day crash since 2008! The losses were driven by the heavyweights that had supercharged the market higher until last month — Samsung Electronics Co., SK Hynix Inc. and Hyundai Motor Co. Down 12%
  • US shale bosses warn they cannot replace war-hit Middle East oil.
  • Blue Owl slides below listing price as private credit worries mount.
  • Howard Lutnick and top Goldman lawyer to testify to Congress over Epstein links.
  • Trump threatens to cut trade with Spain and calls Starmer ‘no Churchill’.

And finally…..

The CEO of IKEA was elected Prime Minister in Sweden. He should have his cabinet together by the end of the weekend.

Clarence

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