End of Day – Tue 7 June

Marcus Today Market Updates

• ASX 200 dropped 111 points to 7096 (1.5%) after the RBA unexpectedly raised rates by 50bps. The market was already shaking on US futures losses as Banks fell hard but the momentum picked up after 2.30pm. The Big Bank Basket fell to $179.92 (2.5%). CBA off 2.6% and NAB down 3.3%. MQG slumped 3.0% with ASX down 3.2% as volumes continue to be low and deals are being pulled. Insurers slipped slightly. MFG rallied slightly after the drubbing yesterday up 2.1%. REITS fell hard as rates rose and 10-year yields rallied hard above 3.5%. GMG down 3.7% on consumer sentiment, SCG down 2.5% and SGP suffering a 3.6% fall. Healthcare was not spared either with CSL under pressure down 1.2% and RHC off 1.3% with FPH down 2.9%. Industrials slid and accelerated after the RBA move, WES down 3.9%, COL off 1.5% and TCL down 3.0%. ‘Old skool’ platform stocks fell hard too, REA down 4.2% SEK off 3.2% and CAR down 3.0%. Tech stocks falling hard with WTC off 5.3%, XRO down 5.0% and the All-Tech Index off 2.8%. BNPL stocks under pressure as Apple joins the BNPL game. ZIP comes undone by 14.3%, SZL off 5.2% and SPT down 12.0%. Resources tried valiantly to hold the line but big miners succumbed with BHP down 0.1%, FMG off 1.1% and gold miners off a little, NCM down 1.5%. Lithium stocks were relatively firm, PLS unchanged, CXO up 3.8%, AKE up 1.0%. Energy stocks drifted lower with STO down 1.2% and WHC off 0.6%.
• In corporate news, YAL up 4.2% as it updated the market on the potential takeover bid, PRN rose 10.1% on a promising update and buy back announcement. SXE also rose 11.2% on a business update.
• In economic news, it was all about the RBA as it raised rates by 0.5%. Big surprise and AUD heads higher. Consumer confidence fell 4.1% to 87. Japan up 0.1% China down 0.1% and HK down 0.5%.

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