Market Updates

 ASX 200 shrugged off early losses to close up 36 to 7365 (0.5%) after the RBA raised rates by 25bps but hinted perhaps at a pause. The market took that well and rallied strongly post the announcement. Banks back yet again, the Big Bank Basket up to $175.48 (0.6%). With MQG up 1.6% and insurers rallying strongly with QBE up 2.3% and SUN up 1.3%. Fund managers better with the exception of MFG falling 0.6%. Industrials across the board firm, WOW up 1.1% and COL up 0.9% with WES doing well running 1.6% higher. Healthcare good, CSL up 0.8% and RMD doing well up 1.1% and REITs firmed with GMG up 0.7% and SCG up 1.0%. Tech was a little left behind as WTC steady and XRO putting on 1.4% with the All-Tech Index up 0.4%. Resources though remain in the doghouse. BHP off % and RIO down % ahead of ex divs Thursday, Lithium stocks under the knife as Citi cut price forecasts. Gold miners mixed despite AUD bullion once again pushing higher. Oil and gas better led by WDS up 1.1% and STO having a lovely day out up 2.7%. Even coal stocks steadied despite under pressure coal prices. On the corporate front, IVC was raised from the dead with a private equity raid and subsequent bid at 1265c. Some corporate resignations from CEOs at MP1 and ALQ. MP1 shareholders should be celebrating but not to be as the stock dropped 15.0%. On the economic front, trade data missed expectations, consumer confidence still nervy and the RBA moved. Asian markets generally better as the NPC continues in China. The 10-year yield fell to 3.69%

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The Dow rose slightly Monday, as Wall Street fought to hold onto last week’s gains with a busy week ahead for traders including Jerome Powell heading to Capitaol Hill for two days of testimony.

The Dow Jones gained 40.47 points, or 0.12%, to settle at 33,431.44. The S&P 500 added 0.07% to end at 4,048.42, while the Nasdaq Composite dipped 0.11% to close at 11,675.74.

At session highs, the Dow jumped 181 points, while the Nasdaq jumped nearly 1.2%. Investors are awaiting Federal Reserve Chair Jerome Powell congressional testimony slated for Tuesday and Wednesday. 

•  SPI Futures down 13  
• RBA today at 2.30pm.Commodities eased across teh board. Coal down and iron ore eased after Chinese 5% target weighed.

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 ASX 200 closed up 45 points at 7329 (0.6%) as once again we saw the market bifurcate. Banks the machine again pushing ahead with the Big Bank Basket up to $174.37 (1.1%) with CBA and NAB leading the charge. MQG also doing well up 2.4% with fund managers in demand after  GQG FUM numbers sending the stock up 1.4%. Insurers a little better QBE down 0.8% as it went ex div. Industrials firmed as tech kicked again, WTC up 0.1% and XRO kicking hard for the surface up 3.8% with the All-Tech Index up %. Staples better, WOW up 1.3% with WES rallying 2.4%. Healthcare also good with bond yields coming off helping the REITs too. GMG up 2.1% and SGP 1.6% better. But once again the resources under a little pressure after Chinese GDP target fell short of expectations. BHP eked out a 0.1% rise with FMG in trouble down 2.5% and lithium stocks under pressure in places although LTR continuing to push ahead, up 5.5%. Rare earths in trouble following Musk comments last week and doubts over LYC WA plans, the stock falling 4.5%. Coal stocks on the nose too as Chinese coal miners ramp up production, WHC down a big 2.1% and SMR collapsing 4.4%. Gold miners down with NCM off 0.7% and NST falling 0.8% with oil and gas stocks easing back too, WDS down 1.5% and STO down 0.8%. In corporate news, BVS launched a company saving hail Mary capital raising. SGM sold its stake in LMS energy, CXO rallied 6.3% on a resource upgrade and MFG rose 2.3% after FUM once again fell. Nothing on the economic docket today ahead of the RBA meeting tomorrow. Asian markets slightly mixed with 10-year yields falling hard to 3.74%.

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US markets better on Friday,  bond yields dropped with the 10 year down 11bp and the two-year down 4bp. The US dollar also dropped 0.35%. Part of that was on the back of a dip in the services sector PMI number from 55.2 to 55.1. Hardly a pivotal release but the first economic number in the last couple of weeks that has come in below rather than above expectations. 55.2 is still a healthy clip as one newswire says, and within the number new orders and employment both rose to more than one year highs, although the prices paid measure in the number fell to a two year low.

• US services sector grows steadily; prices stubbornly high.
• Eurozone recovery gathers pace, PMI numbers allay fears of recession.
• Eurozone producer prices fall due to energy as other goods rise.
• Fed Collins reiterates more rate rises needed to contain inflation.
• Fed "acutely aware” of trouble inflation is causing says report.
• Russians pound access routes to Ukraine’s besieged Bakmut.
• US Attorney General makes unannounced trip to Ukraine. $400 million in new arms aid.
• Sharp drop in equity premium may Mark return to 60/40 portfolio.
• Russia to mothball damaged Nord Stream gas pipelines. No plans to repair or reactivate.
• Biden biopsy sees cancerous tissue removed.
• Houston energy conference next week. Saudi Aramco CEO not attending.

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ASX 200 finished the week on a solid note up 28 points to 7284 (+0.4%) as both banks and resources rallied. Fourth week of losses though. The Big Bank Basket rose to $172.48 (+0.7%). CBA bounced 0.7% and NAB in demand up 1.1%. MQG a more modest 0.3% with insurers easier and fund managers mixed. MFG up 1.1% and PTM down 0.8%. Industrials were better with REITs losing some ground as 10-year yields hit 3.9%, Tech up slightly with WTC up 0.7% and XRO up 0.5%. Healthcare better CSL up 0.4% and RMD doing well up 1.5%. Staples better and TLS doing well up 1.2%. In the resources, BHP continues higher, up 0.6%, RIO up 1.6% and FMG missing the memo down 1.3%. Gold miners eased and rare earths under pressure following the Tesla day and their new motors being rare earth free. Lithium stocks a little mixed, PLS up 2.5% recovering after div and IGO down 0.4%. Oil and gas better, WDS up 0.5% and STO up 1.3%. In corporate news, not much, DOW chair has thrown in the towel, QAN announced it wanted to hire back all the pilots and engineers it lost in Covid. Down 0.3% after news. In economic news, first-home buyer loans hit the lowest level since February 2017. Asian markets better, Japan up 1.2%, China up 0.3% and HK up 0.8%. Dow futures down 23 points. NASDAQ futures down 26 points.

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Wall Street and the EU gained overnight, driven by optimism from the Federal Reserve's approach to interest rates. Federal Reserve Bank of Atlanta President Raphael Bostic said he still prefers to raise rates by another quarter percentage point, should the data suggest that the economy is stronger than he had predicted. Tesla saw its shares fall 5.8 %, as Elon failed to wow investors. Other Tech stocks such as Apple and Alphabet saw moderate gains up 0.41% and 1.82%. The Aussie market is expected to gain this morning with ASX 200 Futures up 28 point (0.39%).

• Copper prices fell 1.8% due to a firmer US dollar and the possibility of new sanctions on China. The US is reportedly sounding out allies on the imposition of new sanctions against China if it provides military support to Russia's war in Ukraine. Copper has lost 6% since January's seven-month high due to a stronger dollar and a slow revival of demand in China.
• Gold prices mostly flat overnight, down 0.03% overnight as the US weekly jobs data suggested a tight labour market that could prompt the US Federal Reserve to continue its rate-hiking cycle. Aluminium -1.3%, Zinc -2.5%, Lead -0.8%, Nickel -2% and Tin -2.8% on the back of a higher USD.
• WTI crude and Brent were mostly unchanged overnight, up 0.62% and 0.21% as hopes for increased Chinese demand against concerns weighed against the Federal Reserve's tightening policies. Bitcoin up 0.26%
• Blinken and Lavrov meet for the first time since Ukraine invasion.
• US labor market stays resilient; Q4 labor costs revised higher.
• US stocks gain as yields cool from earlier highs.
• Coinbase, Galaxy Digital abandon Silvergate after lender flags risks to business.
• Elon Musk's 'Master Plan' for Tesla fails to charge up investors. Tesla down 7%
• Tesla vows to halve EV production costs, Musk keeps affordable car plan under wraps.
• Wall St stocks, dollar power higher despite rate fears.
• China increasingly ambitious with 2023 growth target, may aim for up to 6%.
• US to announce new military aid package for Ukraine on Friday -White House.

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ASX 200 sprinted up around 30 points before closing up only 4 at 7255 (+0.1%) as ex-dividends weighed and concerns on banking competition took their toll. Resources and especially iron ore was the place to be with BHP rallying 4.0%, RIO up 4.0% and FMG up 4.3%. Lithium stocks were up although PLS was off going ex-dividend and with a giant CATL placement weighing. Gold miners doing well, NCM up 2.2% and NST up 2.9% and base metal stocks in demand, S32 sprinting ahead 5.2%. Oil and gas better as WDS rallied with STO up 0.7%. Coal better too on China growth hopes. Banks were sold off heavily. CBA down 2.0% and NAB down 1.9% with the Big Bank Basket down to $171.25 over 2% . MQG lost 2.1% on mortgage competition and media reports of a big UK acquisition. Insurers eased with QBE down 0.6% and fund managers down again. MFG off 1.8% and GQG off 1.0%. Industrials fell across the board, REITs eased, Healthcare down led by CSL off 0.4% with COH down 0.2%. WES fell 0.9% and WOW off 1.4% with COL falling 3.2%. Tech mixed, XRO down 2.9% and WTC better by 1.0%. In corporate news, a little skinny out there today after reporting season, NTO board agreed to the Potentia takeover offer, DOW to be investigated by NSW corruption watchdog. CATL sold down its entire stake in PLS and KAR got slapped down 3.6% with a surprise temporary tax in Brazil. SBM announced it would put Touquoy on care and maintenance early next year.  On the economic front, building approvals dropped to their lowest level since 2012. Asian markets flat, HK down 0.6% and China unchanged. Dow futures up 64 points. NASDAQ futures down 69 points.

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Wall Street mostly lower following a rise in Treasury yields, as Fed Officials reiterate their intention to lift interest rates to more than 5%. Tesla, Apple and Amazon were among the US tech stocks to suffer losses, down 1.43%, 1.42% and 2.19%. The US 10-year yields briefly traded above 4% for the first time since November. ASX 200 Futures down 1 point (-0.01%).

The Dow Jones closed up 5 points (+0.02%). At best it was up 89, and at worst it was down 156. The S&P 500 was down 0.47%, and the NASDAQ was down 0.66%. In Europe, STOXX 50 down 0.53% FTSE +0.49% CAC -0.46% DAX -0.39%.

• Copper and Aluminium were up 1.8% and 2.7% overnight following data indicating that China's manufacturing activity grew in February at its fastest pace in over a decade. The weakening of the US dollar also contributed to price increases. Zinc jumping 4.4%, Nickel up 0.6%, Lead up 1.4% and Tin up 1.1%.
• Gold also up 0.51% as the USD falls, making the metal more affordable for foreign buyers.
• WTI crude and Brent climbed 0.9% and 0.61% on positive Chinese manufacturing data, with gains capped by the fourth straight contraction in US manufacturing data. Bitcoin up 0.49%.
• US manufacturing sector still shrinking; raw material prices rebound.
• Fed officials debate higher vs. just longer after January inflation jump.
• Elon Musk expected to outline more affordable EV and new Tesla 'Master Plan'.
• US House panel approves bill giving Biden power to ban TikTok.
• US stocks fall as manufacturing data lifts Treasury yields.
• Eurozone factory output returned to growth in February.
• China's PMIs expand as economy re-opens from COVID curbs.
• Japan's factory activity shrinks most in 2-1/2 years.

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The Dow Jones closed up 72 points (+0.22%). At best it was up 372, and at worst it was down 3. The S&P 500 was up 0.30%, and the NASDAQ was up 0.63%. In Europe, STOXX 50 up 1.7% FTSE +0.70% CAC +1.5% DAX +1.10%. SPI Futures are up 34 points (+0.47%).
Copper prices rose 1.2% overnight as the dollar weakened but remained close to seven-week lows due to weak demand in China. Gold prices up 0.4% as the dollar retreated, but fears of further interest rate hikes from the US Federal Reserve kept bullion near a two-month low. Other metals gained overnight, Aluminium up 1.5%, Zinc up 1%, Lead up 1.7%, Nickel up 3.7%, while Tin was down 0.5%. WTI crude fell over 0.68% and Brent dropped 1.3% due to concerns of a demand downturn caused by a possible recession, despite expectations of tighter global supplies. The US inflation data also increased worries of more interest rate hikes by the Federal Reserve, which could further dampen demand. Bitcoin up 0.61%

Retails sales today. HVN results.

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ASX 200 dropped 82 points to 7210 (-1.1%) in a nasty start to the week. Weak US leads and a collapse in commodity prices took their toll. Resources under serious pressure today with FMG ex-dividend and then some, weighing with the stock losing 7.3%. BHP capitulated down 3.0% and RIO off 2.9%. So much for 'solid'. Lithium stocks also in the seller’s sights as PLS were ditched, down 7.3%, IGO off 4.0% and MIN falling 6.4%. Second liners also sold off heavily, LTR down 3.7% and CXO off 3.6%. LYC reported this morning and were sold down by 6.2% on worries about July 1 deadline. Base metals also smashed lower, S32 down 2.7%, SFR off 6.8% and ILU off 2.5%. Gold miners also in the house of dog, NCM down 0.2% and NST falling 2.3%. DEG down 2.6%. Oil and gas fared better, WDS results cheered, up 1.5% but STO fell 1.7% and KAR down 0.4%. Coal mixed, WHC off 1.0%. Industrials weaker across the board, WOW and COL slipped slightly, ALL fell 1.0% as some concerns on digital gaming emerged, REITs stumbled lower with GMG down 2.4% and SCG off 3.6%. Platform stocks eased, REA down 2.3% and SEK off 1.6%. Tech slipped slightly but CPU jumped 2.5% on the higher rates outlook. Higher rates are good for banks and the sector held firm today with NAB up 0.5% and the Big Bank Basket up to $178.94 (+0.2%). A green island in a sea of red. Insurers though slid with QBE down 1.2% and IAG off 1.5%. Fund managers were mixed, PTM up 2.5% and MFG down 1.7%. In corporate news, results season drawing to a close and saving the worst until last, DOW were pummeled 23.8% on disappointing results and guidance downgrades. TPG +5.9% after better-than-expected numbers. WDS profits soared as expected after BHP merger deal, MYX has sold its US retail generics portfolio, PPS posted record earnings, APX faltered another 14.2% as it pulled its guidance, SLX became 'unenriched' after the $120m placement took its toll, down 23%. IVC managed to prove that even with an increased death toll it couldn't make money, losing 10.9%. Nothing substantial on the economic front. Asian market mildly weaker and 10-year yields higher at 3.90%. Dow futures up 20 points. NASDAQ futures up 35 points.

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