ASX200 Afternoon Report May 10th 2022

The ASX200 is trading 1.16% lower at 7038 at 3.15pm, paring losses after falling as much as 2.5% shortly after the open.

The volatile performance came after Wall Street hit another sizeable air pocket of turbulence overnight and after a large sell order hit the ASX200 futures market soon after the open.

The sell order appears to have been 10,000 futures contracts or the equivalent to $1.75billion of ASX200 exposure and likely to have been a leveraged offshore fund closing out a bullish bet on the ASX200 market due to the shadow that Chinas Covid lockdowns have cast over commodity and energy prices.

Rio Tinto (Rio) fell 4% to $102.56. Fortescue Metals (FMG) fell 3.1% to $19.01, Mineral Resources (MIN) fell 2.8% to $52.22, and BHP Group (BHP) fell 2.9% to $44.87.

Crude oil prices are trading below $102 p/b on concerns over softening demand from China's lockdowns, higher interest rates and SPR releases. Also weighing on the crude price news, Saudi Arabia, the world's largest exporter, lowered crude oil prices for Asia and Europe.

Beach Energy (BPT) fell 5.07% to $1.59, Woodside Energy (WPL) fell 3.2% to $30.56.Santos (STO) fell 2.66% to $7.87; Origin Energy fell 1.87% lower to $6.81.

A mixed session for the ASX200 IT sector, as Afterpay owner Block (SQ2) fell 9.36% to $121.60 and Sezzle (SZL) fell 1.24% to $0.80c. A better day for Life 360 (360) as it added 4.52% to $3.24, Wisetech Payments (WTC) added 3.5% to $40.90, Tyro Payments (TYR) added 3.33% to $1.08.

The Financial Sector has not been immune from today's carnage. Macquarie (MQG) fell 1.42% to $179.46. Commonwealth Bank (CBA) fell 1.46% to $101.24, ANZ fell 1.38% to $25.67, Westpac (WBC) fell 0.24% to $24.56. National Australia Bank (NAB) was trading flat at $31.66.

Stocks in the Lithium space have tumbled again, led by Galan Lithium (GLN) which fell 5.16% to $1.47, Allkem (AKE) fell 4.15% to $10.85, Iluka Resources (ILU) fell 3.66% to $10.13, Lake Resources (LKE) fell 3.08%% to $1.42.

Pendal (PDL) is trading 6.90% higher at $5.27 after reporting higher revenues, and News Corp (NWS) had added 4.5% to $25.34 after a torrid day yesterday.

Last week's break of uptrend support and recent lows at 7230 resulted in a short-term bearish stance on the ASX200, targeting a test of support at 7000/6950, which was achieved shortly after the open this morning. We look to resell bounce towards 7150.

Source Tradingview. The figures stated are as of May 10th, 2022. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

How to trade with City Index

You can trade with City Index by following these four easy steps:

Open an account, or log in if you’re already a customer

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
Search for the company you want to trade in our award-winning platform
Choose your position and size, and your stop and limit levels
Place the trade

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.