The ASX 200 raced 136 points higher to close at 7332 (1.9%) on a killer combo of lower bond yields, higher iron ore prices, quarter end buying and US futures heading higher. The banks led the charge higher with the Big Bank Basket rising 2.1% to $186.31. MQG up 2.3% and insurers also catching the green blast, QBE up 2.0% and MPL up 2.0%. Big miners were back in demand as bargain hunting and very strong ore prices helped BHP rise 3.4%, FMG up 1.1% despite a death at Solomon Hub and MIN up 3.4%. Gold miners saw some selective buying in DEG and PDI and lithium stocks shrugged off the recent depression as PLS rose 3.5% and ORE up 2.4%. Uranium stocks continued to be pressured on lower uranium prices. Industrials were firm although tech stocks seemed to miss the bullish memo. The All–Tech Index languished, like its big brother the Nasdaq, with the index up only 0.5% and APT losing 0.5%. That could all change tomorrow with some catch up buying. Healthcare back on the rampage, CSL up 2.3% and FPH doing very well up 2.7%. In corporate news, Z1P have done a deal with Microsoft rising 1.3% and ORI had an explosive reaction up 14.5% to the impairments with brokers warming to the story. TCL saw buying as yields fell and the rights shot up 60.3% with one day to go of trade. In economic news, the seasonally adjusted estimate for total dwellings approved rose 6.8% in August. Job vacancies decreased by 9.8% (36,200 vacancies) in the three months to August 202. Asian markets firmed.
- Winners: ORI, ALG, BPT, CXO, TLX, SFR, CDA, LKE
- Losers: PDN, PPK, MYR, STX, BOE, ASG, VGL
- Positive sectors: Everything.
- Negative sectors: Tech underperformed.
- Hi 7332 Lo 7204 Nice big range. Pushed up to highs.
- Big Bank Basket: Rallies hard to $186.31 up 2.1%
- All-Tech index: Up 0.3% APT down 4.2%
- Gold: Relatively unchanged at AUD2404 on lower AUD.
- Bitcoin: Rallies to US$43503.
- Aussie Dollar: Falls to 72.07c 10-YEAR YIELD: Eases to 1.47%
- Asian Markets: Japan flat, HK down 0.8% and China up 0.7% ahead of holiday.
- Hong Kong down 0.3% China falls 1% ahead of holiday.
- US Futures: Dow futures up 250 NASDAQ futures up 130.
STOCKS ON THE MOVE
- BMT +20.02% new contract with CALHN partnership.
- CXO +8.97% board oks Finniss lithium mine in NT.
- EZZ -0.97% declares maiden dividend and beats prospectus.
- PDI +37.14% Bankan Maiden resource estimate.
- ORI +14.53% broker upgrades.
- BPT +9.12% oil and gas price rises.
- SFR +6.61% entitlement offer notification.
- DEG +3.76% more positive results from Hemi Corridor.
- ALG +9.40% reopening is wet and wild.
- TCL +3.28% bond yields ease. TCLR +60.31% volatility to the max.
- AGY +20.59% lithium back in demand.
- FMG +1.08% serious incident at Solomon Hub.
- MYR -8.80% profit taking.
- PDN -12.10% BOE -7.84% ERA -2.82% uranium falls.
- CTT -4.66% another leg down.
- NVX -3.48% becoming a substantial shareholder.
- LIS -14.11% gloss wearing off.
- HAS -9.09% Appendix 4G
- KCN -5.67% FY accounts.
- IPO of the Day: Forrestania Resources (FRS) +42.50% FFR completes the sale of the Forrestania gold project.
- Speculative Stock of the Day: QX Resources (QXR) +38.46% acquisition of highly prospective lithium project in Pilbara.
IN THE NEWS
- Fortescue Metals (FMG) – reports a significant incident this morning at Solomon Hub and site operations have been temporarily suspended, penidng a full investigation. The company is working with WA Police and Department of Mines.
- Zip Co. (Z1P) has entered into a deal with Microsoft to integrate its technology into Microsoft edge shopping experiences. The announcement doesn’t provide any financial details or comments on the longevity of the agreement which is disappointing. Microsoft Edge isn’t much of a big fish in the browser world, but to its credit, it has been growing faster than any of the other search engine since the end of 2019.
- Experience Co (EXP) is raising $55m to finance an acquisition for $46.9m of Trees Adventures.
- South 32(S32) buys an additional 25% of Mozal Aluminium for US$250m.
- Gentrak (GTK) – Guidance revised up with EBITDA around NZ$12m on NZ%105m of revenue.
ECONOMIC NEWS/ BOND MARKETS
- RBNZ seeks feedback on a Digital Currency.
- The number of dwellings approved rose 6.8%in August (seasonally adjusted), ending a run of four consecutive monthly declines, well ahead of the 6.5% decline expected. Approvals remain strong despite the unwinding of stimulus measures in April and the ongoing lockdowns. A welcome sign for stocks leveraged to the building industry in GWA, REH and CSR.
- Job vacancies decreased by 9.8% (36,200 vacancies) in the three months to August 2021 (seasonally adjusted).
- Dozens of supermarkets in Melbourne expected to close this weekend as Victorian CV19 case numbers soar.
- AFL parties to blame for big surge in Melbourne numbers.
- NSW now around 70% vaxxed. ACT up to 90% one dosed, Victoria now at 80% first dose, and is on track to hit 50% double dose on Friday.
- Singapore iron ore futures jump 10% on restocking ahead of Chinese holiday.
- Mapletree Investments a Singapore-based property developer and manager, bought two portfolios of logistics assets in the U.S. for about US$3bn
- Chinese Manufacturing PMI drops below 50 as the energy crunch hits output. The official manufacturing PMI declined to 49.6 from 50.1 in August. The non-manufacturing gauge, which measures activity in construction and services sectors, improved to 53.2, well above the consensus forecast of 49.8. The Caixin manufacturing PMI, a private gauge of output, rebounded to 50 from 49.2 in August. Seems the slow down continues as the energy crunch takes hold. At some stage we may see China reopen to our coal exports as the damage mounts.
US AND EUROPEAN NEWS
- European stocks are expected to open higher on Thursday. Plenty of data out today. French consumer spending data, Spanish retail sales data, German and Italian unemployment numbers and preliminary consumer price inflation data from France, Germany and Italy. The euro zone also releases its latest unemployment data. UK GDP up 5.5% Q2
- ABB has launched a new EV charger the ‘Terra360’ delivers 100km of range in 3 minutes.
- Powell’s job may be ‘transitory’ after the week he is having . Two colleagues gone and Warren attack.
- German business optimistic about new three-way alliance.
- Some irony here, ex Goldman compliance officer accused of insider trading.
- Apple’s Treasurer has retired after 35 years. Looked after the US$200bn cash stash.
- US Congress to vote on debt roof, budget and infrastructure.
- ‘No time to Die’ gets rave reviews. Can’t wait.
I went to the bank and swapped 100 grapes for 50 raisins. Not sure about the currant exchange rate.
A friend of mine invented a washing machine for bank notes. It’s a real money spinner.
Friend of mine lost his job as a courier driver. He just wasn’t delivering the goods.
Don’t think I could cope with a job as a coffee taster. How do they sleep at night?
A friend’s pessimistic attitude cost him his job as a barman. With him, the glass was always half empty.
Got asked to leave the casino the other night. They said I had a chip on my shoulder.
Lost money betting with with one of the big cats at the zoo. Think he was a cheetah.
Walking down the road earlier and I tripped over a sign from the local betting shop. What are the odds on that?