End of Day – Thurs 19 May

Marcus Today Market Updates

• The ASX 200 fell 118 points to 7065 (1.7%) after big falls on US markets. Well off lows and stable at these levels waiting for US markets to find some stability. Banks fell with the Big Bank Basket down to $183.39 (1.7%). CBA down 1.0% and MQG falling 2.1%. Insurers eased back too with QBE down 1.7% and IAG off 1.7%. MFG fell another 3.9%. Industrials were weak with pockets of strength. Consumer stocks under pressure after the US retailers fessed up to margin pressures, SUL down 6.0%, JBH down 6.6% and WES down 7.8%. COL and WOW got bashed too for the same reason. WOW off 5.6% seems a little overdone. Telcos eased, healthcare was better as RHC rose 0.2% on KKR news confirming the bid is still live at $88. CSL up 0.3% but COH down 1.3%. Tech stocks under pressure again. XRO fell 3.1%, WTC down 1.6% and CPU off 3.2% with the All-Tech Index down 2.7%. Resources were hit too, iron ore fell, and BHP dropped 1.7%, FMG down 1.9% and RIO off 1.9%. Lithium stocks eased back, PLS down 2.5% and LTR falling 6.1%. Oil and gas stocks fell, WPL down 2.8% and STO falling 0.6%. JHX under serious pressure on US housing news down 5.5%.
• In corporate news, ALL produced a cracker result and should see upgrades tomorrow and $500m buy back also helping with the stock rising 6.7%. RIO released revised funding arrangements for Turquoise Hill. NUF fell hard after results, down 8.6%. CXL got more government funding, now $65m in three days, up 6.3%. Have to love an election. WEB rose 1.4% on the better than expected numbers and mild increase in costs.
• On the economic front, the LNP will be happy to see unemployment at its lowest since 1974 at 3.9%. Asian markets under pressure with HK the target down 2.2%. 10-year yields slipped slightly on jobs data.

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