The ASX 200 smashed lower from the start. Red lights out and down we went. At the chequered flag, the index was down 89 points to 8851 (1.0%). Narrow range trading again. Down around 3.8% for the week. In the pits today was ‘Team iron Ore’, BHP down 4.2% being a big drag on racing. RIO falling 3.6% and FMG slipping 0.7%. BHP having issues with the stewards in China again on products. Gold miners also feeling tired today as the sell-off continues, despite the bullion price relatively steady. Those on the podium recently have been hit, whilst the losers are being bought up. The tech sector is doing well on its one-stop strategy, with the All-Tech Index up 3.9%. WTC racing ahead up 10.8% and XRO rallying 4.5% as it sees a push! Push! Push! Old skool tech also bounced, REA up 4.9% with TLS solid lap times up 1.2%.

Banks skidded with the Big Bank Basket down to $297.93 (-0.4%) as drivers rested. Financials though generally better, MQG up 0.7% and even GQG cutting corners unchanged.  Even ZIP managed a lower podium finish, up 3.7%. MFG charging up 9.3% as the Lowy family takes a stake in the new merged business. Energy stocks were mixed, coal stocks eased back on the throttle, WDS and STO better as DRS kicked in and uranium stocks seeing brake failure and suffering losses.

In corporate news, DYL dropped 11.8% on results, BHP pulled lower on reports that China’s state backed buyer had found some cargoes had been flouting restrictions.

In economic news, the ACCC warned petrol retailers from price gouging. Good luck with that.

Asian markets firmed, Japan up 0.5%, China up 0.1% and HK up 1.6%. South Korea mixed. KOSDAQ up 2.7% KOSPI down 0.9%

10-year yields jumped to 4.84%

US Futures down DJ up 113 and Nasdaq up 72.

HIGHLIGHTS

  • Winners: SDR, WTC, DRO, DTR, CAT, MFG, PME, IEL
  • Losers: DYL, CYL, SFR, WGX, NST, MAH, FFM, MLX
  • Positive Sectors: Tech. Retail. Oil and gas. Financials.
  • Negative Sectors: Iron ore. Gold. Uranium. Banks. REITs.
  • ASX 200 Hi 8848 Lo 8812 relatively narrow range. Down 3.8% for the week.
  • Big Bank Basket: Falls to $297.93 (-0.4%)
  • All-Tech Index: Up 3.9%
  • Gold: Drifts to $7302
  • Bitcoin: Eases to US$70544
  • 10-year yields: Higher at 4.84%
  • AUD: Slips to 70.31c.

MARKET MOVERS

  • SDR +13.1% tech bounce.
  • DTR +9.7% runs against tide.
  • PME +9.2% fans back.
  • CAT +9.6% tech rally.
  • WTC +10.8% tech rally.
  • MFG +9.3% Lowy family buys in.
  • BAP +14.1% John Wylie buys more.
  • AYA +9.7% LW article.
  • DYL -11.8% results
  • SFR -9.6% copper sell off.
  • MLX -7.6% tin sell off.
  • NST -8.1% gold sell off.
  • RMC -11.3% ex-dividend.
  • Speculative Stock of the Day: TER +18.7%.  No announcements.

ECONOMIC AND OTHER NEWS

  • Oil headed for the biggest weekly surge since 2022. US grants Temporary Waiver for India to import Russian Oil.
  • Gold recaptured some losses but remained on track for the first weekly decline in more than a month. The World Gold Council sees gold well positioned to benefit in the months ahead as structural forces point to renewed US dollar weakness.
  • Asia is better positioned to withstand a temporary oil price shock from tensions in the Middle East compared with the period following Russia’s invasion of Ukraine in 2022, according to ANZ.
  • Jet fuel prices soar as Iran war squeezes supply. Coal prices jump as utilities seek alternative to gas.
  • The Australian Competition and Consumer Commission (ACCC) says it has written to major fuel companies to lay out its expectations about domestic fuel pricing as the conflict in the Middle East drives up global crude prices.
  • Janus Henderson says the Reserve Bank of Australia is likely to raise interest rates more than markets currently expect as inflation remains stubbornly high.

And finally…..

I quit my job after my boss started paying me in vegetables. I could not live off that celery.

I’ve started a dating site for chickens. It’s not my full time job. I’m just doing it to make hens meet.

Clarence

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