The ASX 200 popped 64 points higher today to 8730, up 0.7%. Ends longest losing streak since 2018. Down 0.7% for the week. Banks were flat following a slightly disappointing outlook from the CEO of ANZ as the first bank to deliver its profit result. The Big Bank Basket closed at $286.93 (-0.6%). The rest of the finance sector did well, though, with MQG pushing up another 1.3% ahead of results next week. Insurers also did better, with QBE rising 0.6% and IAG having a very solid day. Whilst over on the REIT sector, we saw good strength across the board, with GMG up 1.3% and GPT up 1.3%. Industrials were a mixed picture, with WOW still smarting after its comments yesterday on earnings guidance down %, whilst COL rose 3.7% after its own trading update. Tech stocks were once again mixed, with WTC rising 2.4% and XRO also slightly firmer, with the All-Tech Index up 0.8%. Health care once again had another mixed picture, with RMD falling 3.5%. Although CSL managed to hold firm, COH found some friends up 5.1%.

The real action today was in the resource sector, as we saw a bounce back in the iron ore majors, with BHP up 2.3% and RIO doing very well, up 2.7%. Once again, lithium stocks were in demand, with LTR featuring very strongly and PLS also up 2.0%. The gold miners were better, as the bullion price picked up and some end-of-week book squaring with EVN up 2.1%. In the oil and gas space, WDS slipped 1.3% and STO was unchanged, with coal stocks slightly firmer and uranium stocks picking up some ground after a volatile week.

In corporate news today, we had the ANZ result, with COL also delivering an in-line result. Nothing on the economic front, though analysts are falling over themselves to predict that the RBA will raise rates next week.

Asian markets mixed as Japan up 0.6% and China and HK easing back.

US Futures pushed slightly higher with the 10-year yields easing to 5.02%

HIGHLIGHTS

  • Winners: LTR, MEI, IPX, EUR, TCG, EIQ, NMG
  • Losers: FFM, CWP, EQR, SKC, JMS, RMD
  • Positive Sectors: Iron ore. Gold miners. Lithium. Rare Earths. Uranium.
  • Negative Sectors: Banks.
  • ASX 200 Hi 8764 Lo 8710 – Narrow range. Down 0.7% this week.
  • Big Bank Basket: Falls to $286.93 (-0.6%) on ANZ outlook.
  • All-Tech Index: Up 0.8%.
  • Gold: Steady at $6408
  • Bitcoin: Rises to US$77092
  • 10-year yields: 5.02%.
  • AUD: Falls to 71.89c.

MARKET MOVERS

  • LTR +% jumps on quarterly.
  • MEI +% rare earths back.
  • EUR +% follows CRML price.
  • WC8 +5.1% kicks again.
  • HCH +14.2% Verde drill results pending.
  • CBE +11.9% corporate presentation.
  • SKS -3.4% pulling back a little.
  • FFM -6.6% ex-bonus.
  • EQR -5.6% Board update.
  • DXB -6.5% selling resumes.
  • HPG -6.6% reaction to quarterly.
  • PEN -15.2% uranium slips.
  • Yesterday’s Hero: EPM unchanged.
  • Speculative Stock of the Day: LTP +25.9% strong trial results.

ECONOMIC AND OTHER NEWS

  • The RBA is poised to lift interest rates again next week, with inflation pressures outweighing growing signs the economy is already slowing, according to HSBC chief economist Paul Bloxham.
  • Australia’s inflation problem is entrenched and will likely force further rate increases, according to Morningstar market strategist Lochlan Halloway, who says markets are underestimating how structural the pressures have become.
  • Atlas Arteria (ALX) has told shareholders to take no action on an unsolicited takeover offer from IFM Investors.
  • South Korea’s exports extended this year’s surge in April as booming semiconductor demand continues to anchor growth. The value of shipments adjusted for differences in the number of working days surged 48% from a year earlier.
  • Apple credits ‘most popular’ ever iPhone for booming sales.
  • Trump drops Scotch whisky tariffs ‘in honour’ of King Charles.
  • Singapore Prime Minister Lawrence Wong warned of bigger disruptions, vows to support workers.
  • US administration facing 60-day war deadline.
  • Monday is a Bank Holiday in UK.

And finally….

Clarence

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