End of Day – Tue 10 May

Marcus Today Market Updates

• The ASX 200 rallied from extreme lows finding support at 7000 closing down only 70 points at 7051 (1.0%). A decent turnaround after falling over 170 points shortly after the opening. Good close too. Selective buying emerged in some tech stocks and industrials, WTC rallied 4.1% and XRO finding friends rising 4.2%. The All- Tech Index slightly positive despite a 8.5% fall in SQ2. CSL was better but other healthcare stocks remain under pressure with RHC down 2.0% as AustralianSuper pulled out of a KKR bid. Banks on the nose again with the Big Bank Basket down to $183.92 (0.6%). The Big four banks made $14bn combined cash profits in the first half, back to pre CV19 levels. NAB up 0.3% ahead of the ex div tomorrow and CBA off 0.9%. MQG steadied at lower levels down only 1.1% with insurers doing ok. QBE up 0.7%. Industrials mixed, TLS fell 1.3% with some bounces in REITs with GMG up 0.3%. Resources under pressure as was the AUD as China growth worries continue. BHP fell 2.6%, FMG off 2.7% and RIO down 3.6% with iron ore second liners like MGX down 3.1%. Gold miners fell, NCM down 3.6% and NST off 3.6%. S32 hit hard by 3.5% as were other base metal and lithium stocks but off lows, energy stocks fell with STO down 1.7% and WPL off 2.6%. Coal stocks too under pressure as WHC fell 1.8% and SMR down 2.4%.
• In corporate news, PDL rose 8.1% on a very respectable set of numbers. IMU up 3.1% on moving to Phase II trials, AUB returned from its capital raise, ex entitlement and fell 9.9%, JLG got walloped down 16.6%, not sure of reason.
• In economic news, retail sales were better than expected with cafes and restaurants in demand. Asian markets weaker with Japan down 0.5%, HK down 2.3% and China actually up 0.6%. 10-year yields steady at 3.55%.

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