The ASX200 rose 161 points to 8870 (1.9%) as we wait for the next catalyst. US futures are slightly positive, but it’s a big week for earnings. CBA and CSL Wednesday. Banks were firm with CBA up 0.6% and the Big Bank Basket up to $281.52 (1.0%). MQG rallied 2.4% and other financials also doing well. ZIP up 3.8% and PPM rose % after a NBIO from CGF. Insurers rose too. REITs had a much better day, GMG jumped 6.5% on data centre outlook and SCG rose 1.8%. Industrials were firm, WES up 1.4% with CAR beating expectations, and rising 9.9%. Retail bounced, although JBH failed to get the memo. ALL up 2.4% and FLT bounce 6.2% in sympathy with WEB. Tech bounced but not really that convincing, WTC up 3.6% and XRO steadied up 1.4% with the All-Tech Index up 3.7%.

Resources saw money flood back in, BHP up 2.3% and FMG rallied 2.6% with gold miners better. NEM up 6.5% and NST rallying 3.6%. Lithium becalmed but copper and base metals did ok. SFR up 4.4% with ILU running hot. Uranium too glowing on US AI spend, LOT up 10.6% and DYL rallying 8.2% with coal also a merry old soul.

In corporate news, WEB rallied hard as the company clarified the Spanish Inquisition. Up 18.6%. No one expected that. BVS also doing well on a guidance update, rallying 29.4%. SEK took a $356m impairment against its Zhaopin business in China. ARG slightly higher after a profit of $130.8m in the first half, and lifted its fully franked interim dividend to a record 18.5c.

In economic news, locally Household spending fell by 0.4% in December in nominal terms. The PBoC injected a total of 600bn yuan via a 14-day repurchase agreement late last week, ending a two-month hiatus.

Bitcoin up to $71716.

Asian markets flying on Japanese election result. Japan up 4.3%. New record high. China up 1.4% and HK up 1.6%

US futures Dow up 60 and Nasdaq up 48. Superbowl dominating.10-year yields firms to 4.86%.

HIGHLIGHTS

• Winners: BVS, PPM, WEB, MTM, WBT, MI6, RSG
• Losers: HMC, CGF, BKI, HLS, GQG
• Positive Sectors:  Everything.             
• Negative Sectors: Nothing.
• ASX 200 Hi 8887 Lo 8809 Strong start.
• Big Bank Basket: Rises to $281.52 (+1.0%)
• All-Tech Index: Up 3.7%
• Gold: Jumps to $7167
• Bitcoin: Steady at US$71760
• AUD: Higher at 70.27c.
• Asian markets rally hard – Japan up to new record on election landslide.
• European markets set for gains.
• US futures Dow up 60 and Nasdaq up 48. Superbowl dominating.

MARKET MOVERS

• BVS +29.4% guidance upgrade.
• PPM +28.4% CGF with a NBIO at 260c.
• WEB +18.6% strong bounce on clarification.
• MI6 +14.1% Corporate presentation.
• WBT +15.0% chip bounce.
• BKI -2.3% weekly NTA
• HMC -5.1% still sold down.
• CGF -3.6% bids for PPM.
• BXB -1.5% risk on.
• INR -3.3% change in substantial holding.
• BOC-9.0% terminating of strategic partnering process.
• Speculative Stock of the Day: AT4 +12.0% Tungsten and Antimony. In America. Great name.

ECONOMIC AND OTHER NEWS

• Household spending fell by 0.4% in December in nominal terms, according to data from the Australian Bureau of Statistics.
• The weakness in December came after robust increases of 1% in November and 1.4% in October, reflecting a shift in consumer demand prompted by major sales and special events.

• The Japanese Prime Minister Sanae Takaichi secured a historic election triumph, positioning her as the nation’s strongest leader in the postwar era.
• The LDP secured a two-thirds super majority in the 465-seat lower house by itself, with a tally of 316 seats, giving it a higher proportion of representatives in the lower house than any other party in post-war Japan.

• Economists reject Kevin Warsh’s claim that AI boom will enable rate cuts.
• Morgan McSweeney resigns as Downing Street chief of staff.
• Shares of Chinese chip designer Montage Technology surged 57% in its Hong Kong trading debut.
• Australia has emerged as one of the world’s top destinations for artificial intelligence investment, ranking behind only the US and China, according to Commonwealth Bank analysts. CBA estimates Australia’s data centre pipeline could approach 6GW, or about $150bn, implying installed capacity could more than triple by 2030.
• The PBoC injected a total of 600bn yuan via a 14-day repurchase agreement late last week, ending a two-month hiatus for such operations.

And finally…..

I sing when I’m in my car, but only in reverse.
I’m a backup singer.

Did you hear about Bruce Lee’s brother who is very tidy? His name is Neat-Lee.

Clarence

XXXXXX