Marcus Today End of Day Podcast – Wednesday 7th June

ASX 200closed down 12 points to 7118 (-0.2%) in a subdued trading day as the market continues to digest yesterday’s surprise rate hike from the RBA and looks for clues in Lowe’s speech today for interest rate trajectory. Sectors closed mixed today. Banks and Energy sectors worst performers. The Big Bank Basket is down to $163.75 (1.0%), the big four all down, CBA -0.9%, NAB -1.8%, WBC -1.5%, and ANZ flat. Interest rate sensitive REITS fell, GMG down 0.7% and SCG off 0.7%. The tech sector ignored the rate hike, with the All-Tech Index up 0.6%, SQ2 up 4.7%, WTC up 1.0%, and CPU rose 1.1%. Inflation hedge gold in the green with EVN up 0.3% and NCM +0.7%. Healthcare performed well, rallying as much as 1% during afternoon trade, supported by record results from PNV. COH +1.8%, PME +0.7% and RHC +0.6%. Energy stocks are down as oil prices stabilise, with WDS off 0.4% and STO down 0.9%.

In corporate news, PNV +15.8% recorded its best-ever monthly sales of $7.2m, BPT fell 8.1% on Trigg 1 well results, GQG +3.6% reported $5.9bn in net inflows, and EHE +13.3% received a revised non-binding proposal.

In economic news, Australia’s GDP expanded 0.2% QoQ in Q1 2023, falling short of expectations for a 0.3% increase marking the sixth consecutive period of economic growth albeit the softest pace in the sequence. More troubling data from China, exports dropped by 7.5% YoY, reversing from an 8.5% growth in April, and imports fell 4.5% YoY marking the third straight month of falls supporting the weak domestic demand narrative. Asian markets outside of Japan are stronger, HK up 1.0%, China up 0.2% and Japan off 1.3%. Australian bond yields inverted, 10Y yield at 3.82%, and 2Y yield at 3.88%. Crypto under siege following SECs lawsuit against Binance, Bitcoin down 1.1%. Dow Jones futures down 8 points and Nasdaq futures down 10 points.

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