The ASX bounced back hard up 150 points to 5942 (2.6%) on low volume due to Public Holidays. Dow futures up 180 as Trump on the mend. A strong SPI showing gave way to increase confidence and buying as Trump appeared to be out of the woods, the Budget tomorrow together with the RBA is also a consideration as some shorts covered on the better macro news and stimulus hopes in both the US and locally. Banks were the big drivers with the Big Bank Basket up to $119.27 with CBA up 3.6% and WBC up 4.3%. Other financials also did well, with MFG up 2.6% and MQG up 3.0% together with insurers QBE up 4.0 % and IAG up 5.0%. Big miners were also back in demand, BHP up 2.9%, FMG up 2.4% and RIO bouncing 2.2%. Gold miners were a little floppy with NCM down 0.5% and modest gains for second liners. Energy stocks were cheered by Asian oil moves higher with WPL up 4.8% and STO rallying 4.7%. In the industrials, TLS had a day in the sunshine rising 2.2% and WES up 1.5% together with ALL up 3.1%. Tech stocks out of favour slightly, APT down 02% and the All Tech Index up 1%. In corporate news, KAR +4.2% aims to complete Bauna Oil acquisition by the end of October, still waiting on approvals. Trian has confirmed that it owns 9.9% of JHG (+6.5%). QAN up 4.9%, upgraded to BUY at Goldman Sachs. The IHS Markit composite PMI index edged into expansion territory, printing 51.1 in September. Bond markets closed for the holiday, Asian markets still quiet with HK back online up 1.5% after a long weekend and Japan up 1.2%
- ASX 200 rallies 150 points to 5942 in thin holiday affected trade.
- High 5943 Low 5815. RBA and Budget tomorrow.
- Big Bank Basket rallies hard to $119.27
- All Tech Index up 1.04%
- 19 trading days until the US election. Jobs number tonight.
- Dow Futures up 180.
- Oil gains in Asia.
- Gold slips to AUD$2637
- 10-year bond yield steady at 0.83%
- AUD firms to 71.78c
- Bitcoin falls to $10695
- Asian markets China closed, Japan back from glitch down %.
MARCUS TODAY TEAM INSIGHT
BEN’S STRATEGY – A strong morning as optimism takes over and reverses the damage we saw on Friday afternoon after it was announced that President Trump had contracted COVID-19. The Federal Budget and the RBA dominate a big week in the economic world, while nine new cases and zero deaths in Victoria sees Melbourne on track to continue its slow reopening. READ MORE
HENRY’S TAKE -A look at the Corona Six Packs. What to do with MSB? And with the budget looming, what do we know so far? READ MORE
- MSB +11.60% solid bounce.
- EOS +9.85% byers return.
- JHG +6.46% confirmation of new substantial shareholder.
- TYR +5.57% business update.
- MAQ -4.67% media article on Cocoon Data allegations
- BYE +12.90% sidetrack success
- FZO -10.58% new sales records disappoint.
- VR1 +30.77% joins FB ISV program and launches Mindesk.
- PM8 +17.65% successful development of mixed rare earth carbonate.
- MMS +4.76% settles class action.
- ALU +0.43% swaps CFO.
- OZL +3.89% completes Cassini acquisition.
- FSF +1.08% sells Chinese dairies.
- Speculative Stock of the Day: Rarex Exploration (REE) +39.13% good carry through after a run last week on its infill drilling results.
- Biggest Winners: AFG, MSB, EOS, CUV, OSH, FXL, NWH, ECX and CIM.
- Biggest Losers: MAQ, HUB, MP1, AHY, EBO, RED and AAC.
- The US market will now close at 7 am in Sydney and Melbourne. This will shift to an 8 am on 1 November as daylight savings kicks in here and in the US. For those living on the West Coast, then things are a little different.
- Ramsay Health Care (RHC) +3.69% RHC’s bid for Inicea’s mental health care assets was unsuccessful.Newswires report Ramsay put forth an offer of €350m while Korian took home the assets with a €360m bid. The failed bid comes after speculation last week RHC was keen to expand into Britain and Europe.
- Karoon Energy (KAR) +4.23% Aims to complete Baúna Oil acquisition in late October. The transaction is subject to certain remaining conditions under the Sale and Purchase agreement, including regulatory approval from Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP), Brazil’s federal government agency responsible for the oil market.
- Virgin Australia (VAH) – QLD government takes a 10% stake in airline to keep HQ in Brisbane.
- Money Supply M1 in Australia increased to $1282.57bn in August from 1$273.06bn in July of 2020.
COVID – 19 NEWS
- Brazil reported 8,456 cases, the fewest since mid-May. That compares with almost 70,000 cases reported on July 29.
- Less than half the U.K.’s population can expect to be vaccinated against Covid-19, according to the FT.
- The U.K. reported almost 23,000 new cases, a number it called “artificially high” after a reporting error that has since been resolved.
- Trump doesn’t have public events scheduled for Monday, according to a daily guidance and press schedule released by the White House.
- NSW goes 10 days without a CV case.
- Kenzo Takada has died from CV19 related complications.
EUROPEAN AND US HEADLINES
- European markets set to open around 0.5%-1% higher.
- Paris put on maximum alert. Bars close. UK hits a new record.
- Trump takes a trip around the block. Possible hospital release today.
- In Italy, Nexi and Sia set to unveil a EUR15bn merger.
- A UK task force has said that vaccinating all of the UK is ‘not going to happen’.
- NY plans to reinstate some limited lockdowns.
Five blokes in an Audi Quattro arrived at the ferry checkpoint in Harwich, Essex.
Tracey, in her brand new uniform, stops them and tells them: “I can’t let you on the ferry. It is illegal to have 5 people in a Quattro. Quattro means four. One of you will have to get out and stay behind.”
“Quattro is just the name of the car,” the driver replies disbelievingly. “Look at the papers: this car is designed to carry five persons.”
“You cannot pull that one on me. This is Tracey you’re talking to here,” she replies with a smile. “Quattro means four. You have five people in your car and you are therefore breaking the law. So I can’t let you onto the ferry. It’s more than my job’s worth to let you all on.”
The driver is now very cross and replies angrily, “I’ve had enough of you. Call your supervisor over. I want to speak to someone with more intelligence!”
“Sorry,” responds Tracey, “but Sharon is busy with those two blokes in the Fiat Uno.”
Extracts from letters written by housing tenants:
1. It’s the dogs mess that I find hard to swallow.
2. I want some repairs done to my cooker as it has backfired and burnt my knob off.
3.. I wish to complain that my father twisted his ankle very badly when he put his foot in the hole in his back passage.
4. Their 18 year old son is continually banging his balls against my fence.
5. I wish to report that tiles are missing from the outside toilet roof. I think it was bad wind the other day that blew them off.
6.. My lavatory seat is cracked, where do I stand?
7. I am writing on behalf of my sink, which is coming away from the wall.
8. Will you please send someone to mend the garden path. My wife tripped and fell on it yesterday and now she is pregnant.
9. I request permission to remove my drawers in the kitchen…
10. 50% of the walls are damp, 50% have crumbling plaster, and 50% are just plain filthy.
11. The next door neighbour has got this huge tool that vibrates the whole house and I just can’t take it anymore.
12. The toilet is blocked and we cannot bath the children until it is cleared.
13. Will you please send a man to look at my water, it is a funny colour and not fit to drink.
14. Our lavatory seat is broken in half and now is in three pieces.
15. I want to complain about the farmer across the road. Every morning at 6am his cock wakes me up and it’s now getting too much for me.
16. The man next door has a large erection in the back garden, which is unsightly and dangerous.
17. Our kitchen floor is damp. We have two children and would like a third, so please send someone round to do something about it.
18. I am a single woman living in a downstairs flat and would you please do something about the noise made by the man on top of me every night.
19. Please send a man with the right tool to finish the job and satisfy my wife…
20. I have had the clerk of works down on the floor six times but I still have no satisfaction.
21. This is to let you know that our lavatory seat is broke and we can’t get BBC2.
22. My bush is really overgrown round the front and my back passage has fungus growing in it.