The ASX 200 bounced back 99 points today to 8605 (1.2%) as banks led the recovery. CBA gained % with the Big Bank Basket up to $271.83 (=1.5%%). NAB the standout gaining 2.0%. MQG also had a good day up 1.9% and insurers did well as higher bond yields helped, QBE up 2.9% and MPL rising 2.1%. REITs also had a better day with GMG up 1.8% and CHC up 2.2%.

Industrials were firm, WES finally finding buyers up 2.4% and TLS gained 2.6%. WOW and COL both did very well on some broker upgrades. Healthcare also found support, CSL up 2.6% and RMD gaining 2.0%. BXB fell another 0.6% and TUA up 17.6% after a 68% fall yesterday. Tech slightly better with the All-Tech Index up 0.8%.

Resources eased back, iron ore off in Asia, BHP down 0.1% and FMG down 0.3% with gold miners mixed, NEM up 1.8% and NST falling 0.7%. Lithium and rare earth stocks slid, LYC down 4.3% and PLS falling 1.3%. Oil and gas stocks held, uranium stocks gained, coal better too.

In corporate news, MIN rose 2.6% after it announced a restart at Bald Hill, SLC flagged a 4.5m share purchase for staff. TNE fell 2.9% as FX headwinds hurt.

On the economic front, RBA minutes pointed to a pause perhaps from the RBA.

 Asian markets bounced a little, Japan down 0.5%, HK flat, China down 0.4% Kospi down 2.8%.

US futures lower with Dow down 39, Nasdaq down 105.  European futures opening around 1% lower. Oil down around 2%.

HIGHLIGHTS

• Winners: TUA, ALQ, OBM, AUB, DMP, ALK
• Losers: 4DX, LRV, PDI, SRL, GLN, DRO
• Positive Sectors: Banks. Industrials. Healthcare. REITs
• Negative Sectors: Lithium. Rare earths.
• ASX 200 Hi 8608 Lo 8563
• Big Bank Basket: Recovers to $271.83 (+1.5%)
• All-Tech Index: Up 0.9%
• Gold: Steady at $6380
• Brent Crude down 1.9%
• Bitcoin: Steady at US$76895
• 10-year yields: Lower at 5.06%
• AUD: Falls to 71.34c.

MARKET MOVERS

• TUA +17.6% strong bounce.
• ALQ +6.8% good results.
• OBM +6.0% upgrades.
• CAR +3.7% ceasing to be a substantial holder.
• WOW +3.7% broker upgrades.
• SPL +8.2% Bounce back.
• DRO -6.1% shorts getting stuck in.
• 4DX -8.8% validation of CTVQ for lung surgery.
• EQR -4.1% profit taking.
• LYC -4.3% rare earths under pressure today.
• AT4 -8.8% placement strongly supported!
• Yesterday’s Hero: KTK -11.1%
• Speculative Stock of the Day: NTU +21.7% Treasurer issues new disposal order, CDT +34.0% transformational high-grade Nielle gold acquisition CDI

ECONOMIC AND OTHER NEWS

• Japan’s economy grows at annualised 2.1% rate in first quarter, beating expectations.
• Japan’s exports grew by a better-than-expected 11.5% year on year in March, partly powered by a 29.3% jump in shipments of semiconductor equipment.
• Iron ore fell for a fourth session in Singapore, the longest run of losses in almost three months, on concerns about a worsening demand outlook in China.
• Iron ore fell 0.8% to $107.35 a ton in Singapore as of 10:57 a.m. local time. Chinese futures dropped 0.8% to 796.50 yuan a ton in Dalian, while steel contracts in Shanghai were also down.
• Putin arrives in Beijing. Same red carpet?
• RBA Minutes – Minutes from the RBA’s May 5 meeting showed the monetary policy board expected its decision to raise the cash rate from 4.35% to 4.6% would be enough to start taking some heat out of the economy.
• RBA assistant governor Sarah Hunter says the combination of interest rate rises and investment tax changes in the federal budget risks cooling the housing market, and warned that Australian living standards will continue to be hit as inflation spreads beyond petrol in the coming months.
• Jim Chalmers released Treasury estimates that the tax rate on capital gains only increase from 19.3% to 21.4% over the next decade.
• Treasury also estimated that house price growth would be 2% lower over the next few years as a result of the tax changes, and rents higher by about $2 a week, or $100 a year.
• Google DeepMind’s Demis Hassabis emerges as early Anthropic investor.
• Standard Chartered to cut almost 8,000 jobs as AI use escalates.

And finally, some wisdom from Bill Gates supposedly…don’t go to any dodgy islands would be one I could come up with!

Not sure if any of these are really Bill Gates but still good advice.

Rule 1:  Life is not fair – get used to it!

Rule 2:  The world doesn’t care about your self-esteem.
The world will expect you to accomplish something
BEFORE you feel good about yourself.

Rule 3:  You will NOT make $60,000 a year right out of high school.
You won’t be a vice-president with a car phone until you earn both.

Rule 4:  If you think your teacher is tough, wait till you get a boss.

Rule 5:  Flipping burgers is not beneath your dignity.
Your Grandparents had a different word for burger flipping:
They called it opportunity.

Rule 6: If you mess up, it’s not your parent’s fault,
so don’t whine about your mistakes, learn from them.

Rule 7:  Before you were born, your parents weren’t as boring
as they are now.  They got that way from paying your bills,
cleaning your clothes and listening to you
talk about how cool you thought you were:
So before you save the rain forest
from the parasites of your parent’s generation,
try delousing the closet in your own room.

Rule 8:  Your school may have done away with winners and losers,
but life HAS NOT.  In some schools, they have abolished failing grades
and they’ll give you as MANY TIMES as you want to get the right answer.
*This doesn’t bear the slightest resemblance to ANYTHING in real life.

Rule 9:  Life is not divided into semesters.
You don’t get summers off and very few employers
are interested in helping you FIND YOURSELF.
(Do that on your own time.)

Rule 10:  Television is NOT real life.
In real life, people actually have to leave the coffee shop and go to jobs.
Rule 11:  Be nice to nerds.
Chances are you’ll end up working for one.

Clarence

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