The ASX 200 fell 126 points to 8,505 (-1.5%) today in a dismal start to the week. Thankfully, the banking sector held up relatively well, with CBA posting a 1% rise, while insurers also performed strongly on the back of higher bond yields. The Big Bank Basket rose to $267.83 (+0.3%). Other financials did not fare as well, with MQG falling 2.6%, HUB down 1.1%, and the REIT sector also under pressure, with GMG down 4.0% and CHC off 3.5%.

Industrials were weaker across the board, with the healthcare sector hit again. CSL fell 1.8% and RMD dropped 0.5%. A couple of poor results this morning set the tone for further weakness in industrials, with SGH down 2.9% and BXB falling 20.2% on a downgrade to earnings, as pallet repair apparently became a thing. The tech space was mixed, with XRO falling 2.0%, although WTC rose slightly, helping the All-Tech Index finish marginally lower.

The real damage today came from the resources sector as iron ore stocks reversed and copper prices came under pressure. BHP fell 2.8% and RIO dropped 3.6% as sentiment towards bulk miners deteriorated.

Gold miners were also under pressure as bullion prices eased, even while the oil price rose. NST fell 2.4%, while EVN suffered the double whammy of weaker gold and copper prices. Oil and gas stocks were inevitably firmer as crude prices pushed higher. WDS rose 2.9%, while STO gained a similar amount. Uranium stocks slipped again, with PDN down 2.5% and BOE off 3.8%.

In corporate news, three major stories stood out. TUA dropped an astonishing 62.8% following issues in Singapore relating to its spectrum licences. ELD also came under pressure, down 22.9%, as higher diesel prices and a messy result hurt sentiment. Meanwhile, the downgrade from BXB simply added to today’s misery. Down 20.8%

There was little on the economic front today, although all eyes remain firmly fixed on bond markets as inflation fears continue to build.

 Asian markets drop hard, Japan down 0.7%, HK off 1.1%, China down 0.6% Kospi bouncing

US futures lower with Dow down 386 Nasdaq down 192.  European futures opening around 1% lower. Oil up over 1.2%.

HIGHLIGHTS

  • Winners: BRE, FRS, ELV, LYC, SSM, CPU
  • Losers: TUA, ELD, BXB, EIQ, PNV, CU6
  • Positive Sectors: Oil and gas. Coal. Insurers.
  • Negative Sectors: Everything else.
  • ASX 200 Hi Lo
  • Big Bank Basket: Recovers to $267.83 (+0.3%)
  • All-Tech Index: Down 0.2%
  • Gold: Slips to $6360
  • Brent Crude up 1.9%
  • Bitcoin: Falls to US$76895
  • 10-year yields: Higher at 5.14%
  • AUD: Falls to 71.41c.

MARKET MOVERS

  • CBA +0.8% bargain hunters.
  • BRE +9.9% rare earths back in favour.
  • LYC +5.5% rare earths.
  • FRS +5.8% Acquisition and placement
  • PE1 +6.7% Space exposure.
  • BXB -20.2% pesky pallets need repairs.
  • ELD -22.9% higher diesel prices and messy result.
  • TUA -62.8% spectrum issues in Singapore.
  • SPL -11.3% no real reason.
  • PNV -11.3% shorters back in charge.
  • SKS -5.9% profit taking.
  • WAM -6.1% ex dividend.
  • Yesterday’s Hero: EXL +6.7%
  • Speculative Stock of the Day:  KTK +102.5% new IPO. Agreement with EquitiesClub.

ECONOMIC AND OTHER NEWS

  • Chinese retail sales, a gauge of consumption, rose 0.2% last month from a year ago, the weakest growth since December 2022. China’s industrial output climbed 4.1% in April from a year earlier, undershooting expectations for a 5.9% rise.
  • Urban unemployment rate edged lower to 5.2%, from 5.4% in March.
  • G7 finance ministers meeting in Paris.
  • China warns of ‘severe’ global conditions as economy shows weakness.
  • Anthropic to brief global financial watchdog on cyber flaws exposed by Mythos.
  • UK Labour leadership battle threatens to reopen Brexit wounds.

And finally…..

It was raining cats and dogs yesterday, and I stepped into a poodle.

Not to brag, but I’m on hold and my call is important to them.

Clarence

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