ASX 200 LIVE: Shares slip; PolyNovo rallies; Goldman tips cash rate to peak at 4.85pc
Platinum records $324m in May outflows
ASX slips at close, dragged lower by energy and banks
RBA to raise cash rate again: CBA's Aird
Cash rate to peak at 4.85pc: Capital Economics
Neuren receives $US40m milestone payment
Goldman Sachs forecasts cash rate to peak at 4.85pc
Joanne Tran
Platinum Asset Management has recorded $324 million in net outflows for the month of May.
The money manager's funds under management last month dropped to $18 billion (approximately) from April's $18.4 billion.
Joanne Tran
The Australian sharemarket fell 0.2 per cent, or 11.6 points, to 7118 at market close after recording gains early during the trading session.
The energy sector was the worst performing, down 0.7 per cent. Beach Energy shares dropped 8.1 per cent. Viva Energy shed 2.8 per cent, Karoon Energy fell 3.5 per cent and Woodside Energy shed 0.4 per cent.
The major banks fell in the red. Commonwealth Bank shares fell 0.9 per cent. Westpac dropped 1.5 per cent. National Australia Bank shares shed 1.8 per cent. ANZ lost 0.04 per cent.
Healthcare stocks rallied. PolyNovo shares surged 15.8 per cent after it posted a record monthly sale of $7.2 million in May. Cochlear rose 1.8 per cent. CSL added 0.4 per cent. Estia Health rallied 13.3 per cent after Bain Capital lobbed a $3.20 a share revised non-binding bid to acquire the aged care operator.
Biotech Pacific Edge shares slumped 73.7 per cent after the company warned its bladder cancer detection product was rejected for US Medicare coverage.
BHP Group shares rose 0.1 per cent.
Joanne Tran
Commonwealth Bank says it's projecting the Reserve Bank to increase the cash rate 0.25 per cent, taking its forecast of the terminal rate to 4.35 per cent.
It's expecting a rate rise at the July board meeting. The bank also acknowledged that there was a "risk of 25 basis point rate rises in both July and August, which would take the cash rate to 4.6 per cent", CBA's head of Australian economics Gareth Aird said.
Joanne Tran
Capital Economic is expecting the Reserve Bank's terminal rate to be 4.85 per cent, pushing the economy into a "mild" recession in the second half of the year.
The firm cited the hawkishness of the central bank's reaction and the rapid escalation of labour cost growth as reasons behind its upgraded forecast.
Tom Richardson
High-flying biotech Neuren said it has received a $US40 million ($60 million) milestone payment from its US distribution partner Acadia to distribute Neuren's DAYBUE drug for the treatment of Rett syndrome in children.
Neuren shares have rocketed 240.4 per cent over the past year and last closed at $13.14.
Joanne Tran
Goldman Sachs says it now expects the cash rate to peak at 4.85 per cent, noting the Reserve Bank's "hawkish" shift in its reaction to combat inflation.
It comes as the central bank increased the cash rate to 4.1 per cent at Tuesday's June board meeting.
The broker is counting on the RBA to raise the cash rate by 0.25 of a percentage point for three consecutive months from July to September. It previously projected the terminal rate to be 4.35 per cent.
Alex Gluyas
Citi has become the latest broker to predict that the rally in iron ore prices won't last, with analysts warning that a lack of meaningful stimulus in China will hold back the expected recovery in steel demand.
Prices for the steelmaking ingredient have jumped over the past week amid reports that China is working on a fresh set of measures to support its property market, and growing speculation that the US Federal Reserve will leave interest rates on hold this month. Futures in Singapore climbed a further 1.1 per cent to $US107.50 a tonne on Wednesday.
Singapore iron ore futures have surged over the past month.
However, Citi expects iron ore to resume its decline and recommends that traders sell into the recent rally. The broker lowered its price forecasts by 4.3 per cent to $US110 a tonne for the second quarter, by 4.8 per cent to $US100 a tonne for the third quarter, and by 14.3 per cent to $US90 a tonne for the fourth quarter.
"Iron ore prices have held slightly stronger than we expected," said Citi analyst Wenyu Yao. "We think the recent strength is unlikely to be sustained as effective stimulus measures will be difficult to achieve, and a supply side response is also not our base case."
Read more here.
Joanne Tran
Healthcare stocks rallied over 1 per cent during the afternoon trading session, recovering from a 1.4 per cent loss on Tuesday.
CSL Healthcare shares rose 1 per cent. Cochlear jumped 2.4 per cent. Ramsay Healthcare gained 1.3 per cent. Pro Medicus rose 1.1 per cent.
PolyNovo shares surged 13 per cent after it posted a record monthly sale of $7.2 million in May.
Carrie LaFrenz
The US Food and Drug Administration will audit Bubs Australia's Deloraine, Victoria canning facility next week as the infant formula company further axes jobs at its US office.
Former Bubs CEO Kristy Carr and executive chairman Dennis Lin are also suing Bubs and the non-executive directors of the baby formula group – Katrina Rathie, Steven Lin, Reg Weine and Paul Jensen – in the Victorian Federal Court over their removal from the company co-founded by Ms Carr.
Bubs chairwoman Katrina Rathie. Louie Douvis
It is understood that non-executive director Mr Weine and interim chief executive Richard Paine flew to the US at the weekend and have since culled two employees, Laura Dowling and Erin Banks.
Ms Dowling is the most senior person in the US business, acting as the chief marketing officer, while Ms Banks was a more junior head of influencer marketing, according to LinkedIn. Ms Dowling, a former divisional VP of North America marketing at fashion house Coach, only joined Bubs five months ago.
Read more here.
Joanne Tran
Tin explorer Elementos has entered into a trading halt.
The company expects the trading halt to remain in place until Friday market open.
It last traded at the price of 17¢ a share, 21.4 per cent higher.
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Cecile Lefort, Timothy Moore, Joanne Tran, Alex Gluyas, Tom Richardson Sarah Jones