The ASX 200 recovered well, closing down only 55 points at 8461 (0.7%), still looking at the worst month since Covid. Banks and industrials were hit hard with CBA down % and WBC off %. The Big Bank Basket fell to $284.96 (-2.7%). MQG dropped 1.0% and other financials were weaker, SUN finished off 1.8%. REITs too suffered with GMG down 1.4% and SCG falling 1.2%. Healthcare also weaker, RMD down 0.9% and CSL off another 1.7%. Tech smashed again, WTC down 4.8% and XRO falling 3.2%. The All-Tech Index fell 2.8%. Supermarkets closed higher and TLS held firm, although retail stocks weakened. JBH down 3.4% and ALL down 2.6%. Travel stocks also falling QAN off 2.0% and FLT falling 4.4%.
In resources, BHP held firm, RIO rallied 4.9% and FMG up 1.8% with gold miners finding support. Lithium stocks also firm on EV sales picking up, PLS up 2.3%. Oil and gas stocks better, KAR hit highs on a board reshuffle, WDS up 2.2% and coal stocks also rising strongly. Uranium stocks finding friends too. AAI soared 8.6% on news that two producers in the Middle East were hit.
In corporate news, KMD remains suspended, AMP announced a $150m buyback late Friday. WJL saw its CEO resign and DRO announced the opening of a European HQ.
Asian markets slumped then fought back, Japan down 3.4%, HK off 1% and China off 0.3%.
10 -year yields fell to 5.06%
HIGHLIGHTS
- Winners: AAI, S32, GGP, NHC, WHC, KAR
- Losers: CAT, 4DX, TEA, CU6, L1G, TPW
- Positive Sectors: Gold miners. Supermarkets. Iron ore. Oil and gas.
- Negative Sectors: Banks. Financials. REITs. Retail. Travel.
- ASX 200 Hi 8461 Lo 8379. Closed on highs of the day.
- Big Bank Basket: Falls to $284.96 (-1.0%)
- All-Tech Index: Down 2.8%
- Gold: Jumps to $6565
- Bitcoin: Falls to $67550
- 10-year yields: Falls to 5.06%
- AUD: Falls to 68.65c
- Dow down 14, Nasdaq up 6.
MARKET MOVERS
- MI6 +10.0% strong drilling results.
- GGP +11.1% MRE announced.
- AAI +8.6% producers hit.
- NHC +8.0% WHC +6.6%
- KAR +5.9% board reshuffle.
- SLS +14.0% change of director’s interest.
- NST +5.2% oversold.
- KCN +4.2% oversold.
- CAT -12.3% investor day
- 4DX -10.2% profit taking.
- WBT -6.0% pressure from capital raising.
- DXB -9.2% slips again.
- FXG -12.1% secures 100% ownership of Treasure Creek.
- Speculative Stock of the Day: OMA +21.2% no news but good volume.
ECONOMIC AND OTHER NEWS
- Westpac chief economist Luci Ellis has changed her call on the Reserve Bank of Australia, now expecting rate rises in May, June and August as a prolonged Middle East conflict drives a stronger inflation shock.
- Australia’s economic growth is set to slow sharply as inflation and unemployment rise, with the Reserve Bank of Australia reversing its 2025 rate cuts, according to Deloitte Access Economics.
- Deloitte forecasts headline CPI may peak at 4.9% in June 2026 before returning to the RBA’s target by June 2027. Real GDP growth is expected to moderate from 2.6% in 2025 to 1.8% by December 2026, with unemployment peaking at 4.9% in mid‑2027.
- President Trump said Iran “gave” the US most of the 15 demands it issued to Tehran to end the war.
- Trump said he wants to seize Iran’s oil resources, which would require a risky military operation involving the invasion and occupation of Kharg Island.
- Pro-AI group to spend $100mn on US midterm elections as backlash grows.
- Insurers give Emirates ‘outrageously’ cheap war insurance cover.
- Hong Kong-listed Insilico Medicine has reached a deal with U.S. pharma giant Eli Lilly for AI-discovered drugs. The agreement will give Insilico $115 million up front, with the remainder subject to regulatory and commercial milestones, along with royalties on future sales.
And finally…..
Workers lose 29 Million work days a year due to Hay fever. But it doesn’t affect all workers…Just those in some fields.
I’ve invented a new talent contest where you have to dress up as a sailor and eat spinach as fast as possible.
I’ll call it Popeyedol.
Tiger woods is in the news this morning for crashing his SUV. I think it’s time he started using a driver .
Clarence
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