The ASX 200 finished up 30 points at 8887 (0.3%) after giving up the morning gains before the RBA’s decision to raise rates. Trading was relatively quiet ahead of the Cup and the RBA decision, with CBA up 1.0%, whilst the other three banks drifted slightly. The Big Bank Basket closed at $285.36 (0.6%). MQG had a good day, up 1.2%, and other financials did well, with SOL up 1.9% and PNI up 3.1%. HUB had a very good day, up 4.8%. AMP continued to stumble around, falling another 9.4%, and insurers were a little weaker. Industrials were strong, with retail doing well on the back of the RBA decision. JBH were up 3.1%, WES up 1.7%, and the tech sector got a boost despite Nasdaq’s falls. WTC up 3.2% and NXT up 5.4%. The defensive supermarkets rose, with WOW up 1.1% and COL up 1.7%, together with TLS rising too. In the REITs, we saw good gains, as it may be that rates have peaked, with GMG up 2.4% and SCG up 3.7%.
Meanwhile, it was a mixed picture in resources: BHP, RIO, and FMG not doing much, with the gold miners slightly firmer, with GMD up 0.8% and NEM up 1.2%. Some tentative moves higher in lithium stocks, but rare earths still wallowing. Oil and gas stocks inevitably fell after the crude price fell, with WDS down 3.5% and STO down 1.8%. Uranium stocks remain toxic, and the fallout continues. Even coal stocks had a bad day, with WHC down 5.1% and NHC down 5.4%.
In corporate news, ARF upped its distribution guidance and rose 3.8%. AMP fell again after Barrenjoey cut its rating on the stock to neutral, and CEH unchanged on AGM comments.
In economic news, we saw, once again, consumer confidence fall, and the RBA grasped the nettle and raised rates by 25bps, as Michelle Bullock laid out the case for keeping rates on hold further down the track. Midterms in focus tonight.
Asian markets mixed, Japan closed for Culture Day.
US Futures mixed.
HIGHLIGHTS
- Winners: VGN, TPW, NWL, QAN, BJY, HVN, NCK
- Losers: A4N, FRS, AMP, SIQ, 4DX, VEA, WIA
- Positive Sectors: Banks. REITs. Retail. Industrials. Supermarkets.
- Negative Sectors: Coal. Oil and gas. Uranium. Healthcare.
- ASX 200 Hi 8909 Lo 8843
- Big Bank Basket: Rises to $285.36(0.6%)
- All-Tech Index: Up 0.7%
- Gold: Rallies to $5628
- Bitcoin: Steady at US$76688
- 10-year yields: Falls to 5.08%.
- AUD: Eases to 69.77c on RBA move.
MARKET MOVERS
- VGN +8.9% oil move.
- QAN +6.4% crude move.
- HVN +5.8% retailers doing better.
- NXT +5.4% bargain hunters.
- DTR +11.8% bargain hunters.
- BBN +11.3% nappy change.
- A4N -24.7% yesterday’s rally gone.
- AMP -9.4% Barrenjoey downgrade and Chinese issues.
- 4DX -7.3% assume the position.
- SKS -5.1% on the nose again.
- WBT -5.5% chips fried.
- Speculative Stock of the Day: Nothing on any volume.
ECONOMIC AND OTHER NEWS
- The RBA raised the cash rate to 4.85%, but this time it was a split decision with 9-3, so maybe the next move from the RBA is not quite so certain after all.
- CBA says Sydney house prices could drop 16% in the largest downturn on record. In an updated forecast, the bank now predicts prices nationally will ultimately fall by around 14%, peak to trough.
- Betashares say two further rate rises can’t be ruled out. Pimco says the RBA will start cutting rates in the second half of 2027.
- The RBA has cut its forecast for economic growth to 1.5% from 1.8% in its August projections.
- South Korea’s inflation rate remained elevated in October, with CPI up 2.8% from a year earlier.
- UBS says AGM season confirms ongoing earnings slowdown.
- Oracle is set to price its share sale at an 11% discount.
- Australian consumer confidence plummeted to a five-month low, falling 1.7 points to 66.2.
- Trump talks algae at the reflection pool. U.S. launches airstrikes against Iran on the eve of the election.
- Apple has warned memory chip costs will hit margins.
- European supermarket freezers are overheating in a fresh cyberattack.
And finally…..
Clarence
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