The ASX 200 shrugged off early losses to close up 23 points at 7297 (0.3%) after some encouraging news on Evergrande debt emerged and the PBoC injected more liquidity into the system. The market did drift off this afternoon into the close, so concerns remain and FOMC tonight. Resources led the way higher with iron ore stocks rebounding from oversold positions. BHP up 2.4% and FMG up 4.2%. Base metal miners also getting in on the act with OZL up 3.0% and IGO rising 1.4%. The hot metals like uranium and lithium also saw gains with PLS up 2.9% and PDN better by 0.6%. Gold miners also finding some support on rising bullion prices, DEG up 4.1%, NCM up 0.6% and EVN better by 1.6%. Oil stocks gained STO up 1.9% and WPL rising 2.4%. Banks were sloppy together with insurers although MQG made gains of around 0.4%. The Big Bank Basket fell to $178.55. Industrials was mixed to slightly better with REA continuing to see gains and GMG basking in logistic glory up 1.4%. Healthcare also rose with CSL up 0.7% and FPH ahead by 1.0%. Tech stocks were mixed. Little on the corporate front today, WBC abandoned its plans to sell PNG to KSL, AXE sealed another patent in the US moving up by 4.5% and GMD did the deal of the day up 147.0% after a new strategic funding package from Raleigh Finlayson, the former MD of SAR and NST.

MAJOR MOVERS:

  • Winners: LKE, MGX. JRV, ADO, NHC, SM1, SGM, WOR
  • Losers: RED, PMV, VUL, RF1, ERD, LNK, STX, LTR
  • Positive sectors: Iron ore, Energy, Base metals, Gold miners, Healthcare.
  • Negative sectors: Banks, Insurers, Industrials.
  • Hi 7339 Lo 7242
  • Big Bank Basket: Falls to $178.55
  • All-Tech index: Up 0.1% APT down 0.4%
  • Gold: Firms to AUD2450.
  • Bitcoin: Falls to US$42112.
  • Aussie Dollar: Stronger at 72.53c 10-YEAR YIELD: Slips to 1.26%
  • Asian Markets: Markets in South Korea & Hong Kong are closed today due to public holidays. Japan now up 10% in a month, today down 1.02%. China up 0.33 %.
  • US Futures: Dow futures up 123. NASDAQ futures up 43.

FUTURES HIGHS AND LOWS

POINTS

STOCKS ON THE MOVE

  • GMD +146.58% strategic funding package with cornerstone investor.
  • Z1P +4.33% buys minority interest in Indian EMI.
  • LKE +18.45% strategic investment.
  • CIA +5.35% MGX +11.63% bargain hunters in iron ore stocks.
  • DEG +4.10% drilling results and bullion bounce.
  • MVP +18.53% on a charge.
  • NWE +28.57% Lockyer Deep gas discovery.
  • GRV +11.76% commercialisation pathway for Alpha Torbanite project.
  • PMV -4.49% some profit taking.
  • LTR -3.29% coming off the boil.
  • AST -2.70% doubts on bid emerge.
  • NCK -3.18% initial director’s interest.
  • IAG -2.99% insurers under pressure.
  • WBC -1.11% KSL deal no longer proceeding.
  • BOQ -0.44% another business banker chief bites the dust. Oscar Wilde would be impressed.
  • RF1 -3.80% former dealer banned.
  • ARB +0.51% MS goes overweight.
  • Speculative Stock of the Day: PepinNini Minerals (PNN) +45.00% good volume and a set of strong interim results from the lithium brine blending study using brine from Rincon and Incahuasi salares in Argentina.

IN THE NEWS

  • Earthquake in Melbourne. First in 50 years.
  • Australia plans to open its international border by Christmas at the latest according to Dan Tehan at a speech today at the National Press Club. Australians will be able to travel abroad, with no restrictions on the destination, once the vaccination rate in their respective home state hits 80%.
  • Zip Co. (Z1P) enters the Indian market with a $69m investment in Indian BNPL operator ZestMoney. ZestMoney boasts 11m registered users and over 10,000 online merchants.
  • AGL Energy confirms outlook for FY22, see earnings in the range of $220-340m. AGL downgraded underlying EBITDA guidance back in August. Repeats commitment to reducing operating costs by $150m by the end of FY22. To sell ~$400m of non-core assets by the end of FY22.
  • Archer Materials (AXE) – has reached its most significant early-stage commercialisation milestone with the granting of a US patent for the 12CQ quantum computing chip. The granting of the US Patent is a significant step in the Company’s efforts to access global markets and participate in the US technology economy.
  • Lake Resources (LKE) – Has partnered with US company Lilac Solutions for technology and funding to develop the Kachi Lithium Brine Project in Argetina. The Lilac production process is lower cost and offers higher lithium recovery rates (80-90%) than other technologies to produce battery quality lithium carbonate (99.97% purity), while also protecting the local environment, including water resources.

ECONOMIC NEWS/ BOND MARKETS

  • Michelle Bullock from the RBA has said that “Sharp rises in housing prices that are not associated with fundamentals could lead to instability by raising the risk of a subsequent decline,” in an online speech. She went on to say, “the consequences of higher household debt could make the economy more susceptible to downturns if there were a shock to incomes or house prices.” She noted that housing credit was growing at 7% and could reach 11% by early next year.
  • Some analysts are putting together hit lists of what China could target in Australian exports. Products most at risk are those where Australia is a small producer by international standards and/or where imports relative to total consumption in China are quite small. That would include dairy products and maybe meat including sheep meat and maybe almonds. The biggest risk is the potential for some sort of restriction on education and tourism.
  • Thailand reported 11,252 new Covid-19 cases on Wednesday.
  • NZ says it is still aiming for zero cases.
  • China reported 16 Covid-19 cases on Wednesday, including three found in the north eastern city of Harbin.

ASIAN MARKETS

  • The PBoC injected 120 billion yuan into the banking system through reverse repurchase agreements, exceeding the 30 billion yuan of maturities on Wednesday.
  • Evergrande’s onshore property unit said Wednesday it had a plan to repay interest due September 23 on domestic notes.
  • President Xi pledges to stop building new coal -fired power station overseas in UN speech.

US AND EUROPEAN NEWS

  • European markets set to open slightly higher. Crude prices firm too.
  • The House voted Tuesday night (US) to fund the government into early December. This now sets up a showdown with the Republicans in the Senate. It is unlikely to pass there. Funding runs out on 30th September.
  • Bitcoin drops below US$40,000 then bounces back to US$42122..
  • Softbank has back Steve Mnuchin’s new private equity fund to the tune of US$2.5bn.
  • Supply chain issues in UK and Europe for CO2. Flat warm beer will be default setting. Supply chains to blame.
  • Merkel has last gasp to help her successor over the line. Election 26th.
  • DraftKings bidding for Entain.
  • Fed expected to lay out Taper Timetable tonight. Watch for the Dots.

And finally….

A fish swims into a concrete wall. Dam.

I studied concrete for a while. It’s really hard.

How do you start a concrete race? “Ready… Set…”

I’m never sure of the difference between concrete and paving slabs. It’s a grey area.

It annoys me when people misuse the words concrete, asphalt and gravel. It’s all about cementics.

A group of escaped prisoners fell into some concrete as part of their getaway. Police are looking for hardened criminals.

I saw a duck staring at the concrete I was mixing, and I ended up with quacks in the building.

Some friends of mine won’t believe me that I can make cement, they’ve asked for concrete evidence.

Clarence

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