ASX 200 fell 49 points to 5859 (0.8%) despite trying hard to pick itself up off the mat but succumbing to apathy in lower Friday trade. Dow Futures up 161. Banks came under pressure as they faced the music in Canberra, the Big Bank Basket fell to $117.29 with CBA down 1.4% and other financials falling in sympathy. MQG fell 1.0% and QBE down 2.9%. Miners were weaker dominated by the RIO executive cull after the destruction of the heritage site. Strangely RIO only lost 0.6% whilst BHP dropped 1.2% as it moves fast to ensure no similar issues. FMG down 3.1% on a broker downgrade. Gold miners slipped led by NCM down 1.7% and NST down 1.3%. Healthcare one of the few bright spots as CSL rallied 0.5% and SHL rose 1.7%. Industrials were mixes although REITs were steady, GMG up 1.2%. WES fell 0.6% and WOW down 0.4%. Tech sector remains under pressure with BNPL stocks in the seller’s sights, APT down 2.3% and SZL down 9.0%. The All Tech Index dropped 1,4%. Oil stocks well and truly out of favour as WPL fell 1.6% and OSH down 3.7%. In corporate news, NEA returned to trade and fell 14.9%, IGO rose 2.0% on its latest strategic review, and BRN fell 14.6% as profit taking and logic returned. The 10-year yield dropped back to 0.90% and the AUD is steady. Asian markets were firmer as Japan rose 0.7% and China up 0.5%

Today’s Highlights

  • ASX 200 down 49 to 5859. Down 1.1% for the week.
  • High 5898 Low 5836. Lower volumes.
  • Big Bank Basket drops to $117.29
  • All Tech Index down 1.4%
  • 35 trading days until the US election.
  • Dow Futures up 161
  • Gold steady at AUD$2667
  • 10-year bond yield slips to 0.90%
  • AUD steady at 72.76c
  • Bitcoin slips to $10245
  • Asian markets were firmer as Japan rose 0.7% and China up 0.5%

STOCKS

  • FMG -3.07% cops MS downgrade.
  • WHC +5.92% signs of life in coal stocks.
  • JIN +6.16% back in favour as Jackpots rise.
  • BRN -14.57% profit taking continues.
  • NEA -14.88% capital raising weighs.
  • SZL -9.04% Z1P -6.70% BNPL under pressure.
  • RED -4.55% vesting of performance shares.
  • PBH -5.04% capital raising weighs. PBHRA +9.38%
  • BHP -1.16% under pressure on RIO issues.
  • MGX -3.31% iron ore falls.
  • MNS +5.41% major success in fast charging batteries.
  • TNT +6.52% completes acquisitions.
  • RFG +4.69% sale of Dairy Country.
  • VMT +4.55% scooting ahead.
  • GSW -16.67 % unmarketable parcel facility
  • LBT -9.44% BNPL sours.
  • CXL -8.16% Appendix 2a.
  • SUN -1.64% cuts 550 jobs.
  • Speculative Stock of the Day: Change Financial (CCA) +34.78% Acquisition of Wirecard assets in Australia and NZ and capital raise.
  • Biggest Winners: JIN, WHC, BWX, KKC, AKP, ADI and CMW.
  • Biggest Losers: NEA, BRN, SZL, Z1P, PBH, RED, BGL.

TODAY

  • Rio Tinto (RIO) -0.59% Jacques, as will head of iron ore Chris Salisbury and head of corporate relations Simone Niven are out. Jacques will have his last day no later than the 31st of March next year, while Sailsbury and Niven will leave their roles by the end of the year.
  • IGO Limited (IGO)-2.05%A strategic review is on the table as IGO considers options for its Tropicana Gold Mine Stake. Macquarie is reportedly most likely to get the job following pressure from institutional shareholders to unlock value with the $1bn stake. The sale of Tropicana would allow IGO to zero in on their core strategy in battery minerals.
  • Woolworths (WOW) –0.38% CEO Brad Banducci has warned that Victorian stores could face stock shortages in the lead up to Christmas is the state government does not ease the restrictions that are crippling the supermarket giants supply chain.
  • Nearmap (NEA) –14.88% Completes its $72.1m institutional placement at 277c a share – the top end of the placement bookbuild range. Simultaneous to the placement, non-executive director Ross Norgard sold ~4.2m shares, amounting to roughly $12m and representing around 15% of his NEA holdings.

ECONOMIC NEWS

  • Morgan Stanley is forecasting 62% iron ore would average $US63 a tonne by 2025.

COVID – 19 NEWS

  • The Japanese government is planning to have testing centres for coronavirus in nightlife districts across the nation.
  • Singapore Airlines Ltd. is eliminating about 4,300 jobs, or 20% of its workforce.
  • Brazil reported 40,557 cases, up from 35,816 the previous day, for a total of 4,238,446.
  • Former New York Jets wide receiver Josh Bellamy has been charged for his alleged participation in a $24 million Paycheck Protection Program fraud scheme.
  • Drugmakers seeking an emergency authorization for a Covid-19 vaccine will have to meet a higher standard of efficacy than normally would be required for such a clearance according to the head of the FDA.

BONDS

ASIAN NEWS

  • Japan and Singapore open up travel.
  • Changi Airport chair steps down over a maid scandal.

EUROPEAN AND US HEADLINES

  • Trump will not extend the TiKTok deadline. The clocking is ticking. TikTok.
  • Ray Dalio says Joe Biden wouldn’t hurt stock market in the long run.
  • Companies have been urged to get in early with debt sales ahead of the US election.
  • JP Morgan has asked senior traders to return to the iffice now that CV19 is easing.
  • Jane Fraser has been named as the head of Citi. First woman in charge of a major US investment bank.
  • Brussels has threatened legal action over UKs latest Brexit Bill.

And finally

What’s the best thing about Switzerland?

I don’t know, but the flag is a big plus.

Helvetica and Times New Roman walk into a bar

“Get out of here!” shouts the bartender. “We don’t serve your type.”

Knock! Knock!

Q: Who’s there?
A: Control Freak.
Q: Con…
A: Okay, now you say, “Control Freak who?”

Clarence

XXXX