The ASX 200 snaps back down 147 points to 7186 (2.0%) as enthusiasm reverses. Down 2.1% for the week. US Politics taking centre stage and the debt roof in play. Banks under serious pressure as moves to rein in extreme house price rises weigh. The Big Bank Basket down 3.3% to $180.20. CBA the worst of the big four as most exposed to the housing sector losing 4.1%. Other financial also hit hard, MFG down 1.8%, MQG off 2.9% and QBE eased 3.0%. Industrials were also under serious pressure, ALL down 4.2%, DMP down 6.3%, WOW warning of some closures this weekend as CV19 restrictions bite. TCL fell 1.6% on its last day of rights trading, REH down 5.3% as a housing play and BLD dropped 2.8%. Healthcare in casualty, CSL dropped 1.5%, RMD down 1.8% and RHC off 1.8%. In the mining stocks it was reverse all engines, BHP fell 2.0%, RIO down 2.9% and FMG off 2.6%. Lithium stocks were depressed PLS losing 5.4% and ORE down 4.0%. Uranium though finding some support, PDN up 4.4%. Base metal stocks eased, and gold miners were one of the few spots of green grass in a sea of red. NCM up 0.8% and NST rising 2.5%. Tech mixed surprisingly, XRO found some friends up 1.0% but APT dropped 2.1%. The All–Tech Index falling 1.2%. Travel stocks firmed as international flights set to resume. Next month. WEB up 2.0% and QAN up 0.7%. Not much on the corporate front. In NSW the Premier resigned ahead of an ICAC inquiry and death rate continued at elevated levels. US futures weaker but off lows.

MAJOR MOVERS:

  • Winners: YAL, TUA, CMM, CRN, HTA, IMD, PDN, WHC, GEM
  • Losers: VUK, MGX, MIN, DMP, HUB, ALG, LTR, CTT
  • Positive sectors: Gold miners.
  • Negative sectors: Banks. Miners. Industrials.
  • Hi 7311 Lo 7158
  • ASX 200 drops 2.1% for the week.
  • Big Bank Basket: Crashes back to $180.20 down 3.3%.
  • All-Tech index:  Down 1.2% APT down 2.1%
  • Gold: Rallies to AUD2433.
  • Bitcoin: Rallies to US$43598.
  • Aussie Dollar: Steady at 72.07c 10-YEAR YIELD: Steady at1.48%
  • Asian Markets: Japan down 2.3%
  • US Futures: Dow futures down 180 off lows. NASDAQ futures down 70.

STOCKS ON THE MOVE

  • YAL +11.52% coal stocks in favour.
  • PDN +4.35% book squaring and bargain hunting.
  • WHC +4.02% CRN +5.04% coal bounce.
  • WBT +7.06% successful scaling of ReRam technology.
  • SLR +3.73% second line gold miners firm slightly.
  • TUA +9.66% continuing to defy gravity as brokers upgrade.
  • MNS +4.84% air permit received for NY battery tech plant.
  • EOL +18.08% acquisition of EGSSIS NV in Belgium.
  • PPK -4.11% LIS -10.87% both falling in tandem now.
  • FYI -35.76% JV with Alcoa signed to develop HPA.
  • STO -2.93% placement of 60m shares from ENN.
  • TCLR -12.38% last day of trade today.
  • VUK -7.43% business update.
  • CTT -5.50% sell off continues.
  • DMP -6.26% stuffed crust.
  • MGX -7.29% operating update.
  • ALG -6.13% QLD case numbers rise slightly.
  • BPT -5.02% profit taking.
  • AGY -7.32% Rincon update.
  • PDI -8.33% profit taking. Research from Argonaut. PT 23c.
  • Speculative Stock of the Day: Nexus Minerals (NXM) +25.00% good volume and written up this morning in newsletter as part of the one stock competition.

IN THE NEWS

  • Archer Materials (AXE) – trading halt as it raises $15m at 145c to fund US expansion following the recent US patents.
  • Argossy Minerals (AGY) – Rincon Lithium Project update; 40% of construction complete with works progressing on schedule and budget. Another step in the right direction.
  • Pro Medicus (PME) – signs 7-year $40M contract with Novant Health.
  • iCar Asia (ICQ) – Carsome has completed Due diligence and has revised down its offer to between 53-54c from 55c.
  • Virgin UK (VUK) – Disappointing update. VUK is accelerating the next phase of its digital strategy and increasing the level of investment in
    digital initiatives. As a result, restructuring charges for FY21 are now expected to be c.£145m in total with an additional c.£45m booked in Q4. The company hopes that the strategy will lead to greater efficiency and will drivie up levels of digitisation within the group.
  • Optus has followed Telstra (TLS) in a sale of its mobile tower network to AustralianSuper for $1.9bn for a 70% stake.
  • Cimic (CIM) – UGL subsidiary has won a $279m contract over seven years to supply diesel locomotives for Pacific National.

ECONOMIC NEWS/ BOND MARKETS

  • NSW Premier Gladys Berejiklian has resigned and will see a by-election in due course. ICAC have launched an investigation into her conduct.
  • Australian housing data for September released Friday showed prices climbed 17.6% in the first nine months of this year. The CoreLogic national home value index rose by 1.5% in September to be up 20.3% on the year. Hobart experienced the biggest rise in the month, up 2.3% with Melbourne the worst performer out of the states, up only 0.8%.

CV19 NEWS

  • Sign of the time. Bloomberg now has a Travel Tracker on where you can go.
  • Japan has dropped most CV19 restrictions. Outgoing PM Suga thanked the people.

ASIAN MARKETS

  • Chinese markets closed for a week. Golden Week holiday.
  • Inner Mongolia Yili Industrial Group is considering a takeover of HK Listed Ausnutria Dairy. The HK company has a market cap of around US$1.8bn. Ausnutria, sells products in China, North America, the Middle East and parts of Europe.  Its products include infant formula based on goat milk and organic cow milk made under the Kabrita and Neolac brand names.
  • Silicon metal is up 300% in the last two months after production cuts in China. Silica makes up 28% of the earths crust by weight.

US AND EUROPEAN NEWS

  • European markets are opening around 1% lower. German workers are striking for better pay as inflation heads higher. German inflation hits 4.1%. Stagflation rears its head.
  • Zoom and Five9 abandon US$14.7bn deal. Fees for M&A deals hits US$100bn.
  • In the US, a trader has taken on a giant options trade that will pay off by December if the index tanks 20% and the upside is capped above 4503 on the S&P 500.
  • Daimler to vote on truck spin off today at an EGM.

And finally….

Walking down the road earlier and I tripped over a sign from the local betting shop. What are the odds on that?

The CEO of IKEA was elected Prime Minister in Sweden.

He should have his cabinet together by the end of the weekend.

What’s the difference between a literalist and a kleptomaniac? A literalist takes things literally. A kleptomaniac takes things, literally.

Bob The Builder has emigrated and set up a new business on a French Mediterranean island… Can he fix it? Corsican!

I dreamed about drowning in an ocean made out of orange soda last night. It took me a while to figure out it was just a Fanta sea

“Doctor, there’s a patient on line 1 that says he’s invisible.”

“Well, tell him I can’t see him right now.”

Atheism is a non-prophet organization.

Clarence

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