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The ASX 200 fell another 60 points to 8,749, down 0.7%. Once again, it was resources that bore the brunt of the selling, with the gold price testing $4,000 and heading below it, and gold miners slipping. NST down 3.3%, EVN down 3.8%, with the iron ore miners also under pressure today. RIO off 2.3%, FMG down 1.6%.

Lithium stocks also fell away, with PLS down 5.0% and LTR also falling 7.4%. Copper stocks were very much on the nose, following falls in resource and commodity prices overseas. SFR down 3.6%. Meanwhile, oil and gas stocks were also easier as the oil price slipped another 1.7% in Asian trade, with WDS down 2.9% and STO down 2.8%. Not much happened in the uranium sector, with PDN slightly firmer on some results from Canada.

The banks also struggled today, with CBA holding up better than the other three, still down 1.3%, while NAB was the worst of the bunch, down 3.4% following JDO’s results and the stock being hammered 40.4%. The theory is that NAB is the most exposed to the business sector. The Big Bank Basket fell 1.3%. Other financials were less affected, with the insurers once again pushing higher. QBE up 1.3% and MPL up 2.7%.

Industrials were a bright spot today across the board, with WES pushing up 2.5%, ALL up 2.4%, and retail stocks performing better after the jobs numbers released today. This points to an improving economic backdrop. We also saw WOW and COL continue to receive buying as defensive plays. TLS rose 0.6%.

The REIT sector also did well today, with GMG up 1.1% and CHC up 1.0%. Healthcare was a standout sector as CSL continued to power ahead, up 2.3% and RMD also had a good day out, up 4.6%, with SIG performing well too. Once again, though, we saw losses in the technology sector, with XRO down another 3.5% and WTC giving back some of its gains from yesterday, falling X%, with the All Tech Index unchanged at CPU rose 0.5%

In corporate news, A2M rose after declaring a special $300 million dividend. TEA also upgraded its earnings growth forecast, and THL received a fresh offer from a mystery suitor valuing the company at between NZ$3.30 and NZ$3.40 a share. JDO 40.4% smashed on higher provisions and slowdown. WOR down 9.7% on a second profit warning. EIQ soared 30.2% on an investment from PME.

On the economic front, the headline unemployment rate fell to 4.4% in May, with employment rising by 40,000 and the number of unemployed people falling by 18,000. Most of the jobs growth, however, came from part-time employment, with only 5,000 new full-time jobs created.

Nikkei 225 up 4.5%, South Korea up 7.0%, HK down 1.3% and Shanghai up 1.7%.

US futures mixed, Nasdaq up 500 plus – Dow Jones flat.

HIGHLIGHTS

  • Winners: EIQ, LLC, GYG, VGN, REH, TPW, JHX
  • Losers: JDO, PDI, MI6, SMI, TVN, WOR, IPX
  • Positive Sectors: Industrials.
  • Negative Sectors: Banks. Resources. Tech.
  • ASX 200 Hi 8801 Lo 8749
  • Big Bank Basket: Lower at $270.07 (-1.3%)
  • All-Tech Index: Unchanged
  • Gold: Slips to $5774
  • Bitcoin: Falls to US$61430
  • 10-year yields: Falls to 4.73%
  • AUD: Falls to 68.95c
  • Oil down 1.7%

MARKET MOVERS

  • EIQ +40.4% PME takes a stake.
  • VGN +7.8% taking off.
  • RMD +4.6% moving higher.
  • GYG +8.9% short squeeze.
  • JHX +5.2% US builders pick up.
  • THL +7.7% mystery bid
  • FWD +7.0% bounce continues.
  • PE1 +6.4% distribution
  • NAB -3.4% falls on JDO sentiment.
  • JDO -% chopped on higher provisions.
  • JIN -17.3% trampled.
  • CCR -25.0% Response to ACC proceedings and director’s interest.
  • MI6 -12.2% Bullabulling results.
  • WOR -9.7% another downgrade.
  • LTR -7.4% lithium stocks sold down.
  • SMI -10.4% BOGP fats track approvals update
  • Speculative Stock of the Day:  ODA +167.4% Multi year logistics contract.

ECONOMIC AND OTHER NEWS

  • Local jobs numbers come in with 40k new jobs and 4.4% headline.
  • Donald Trump and Mark Rutte (NATO chief) meet in Washington.
  • Trump demands ‘loyalty’ from Nato allies and slams lack of support in Iran war
  • SK Hynix surges 12% on US Listing plans.
  • Micro gains driving Nasdaq futures gains.
  • Bitcoin is facing a massive options expiry that risks putting more pressure on a market. About $10bn of notional value in Bitcoin options is set to expire on Deribit, the largest crypto options venue, at 4 p.m. Friday in Singapore.
  • US banks would lose $700bn in economic crash, Fed stress tests find
  • Venezuela rocked by two huge earthquakes.
  • South Korea delays plan for new single-stock options amid record volatility.

And finally…

Clarence

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