The ASX 200 up 63 points to 7320 (0.9%) rallying hard into the weekend on better news from China, higher commodity prices, US debt ceiling news and a breakout of optimism ahead of the US jobs data. Resource stocks leading the charge higher as punters focused on BHP’s oil and coal exposure sending the stock up 3.0%. FMG rose 2.4% as China returned from Golden Week and the PBoC withdrew stimulus. RIO up 4.0% and BSL up 1.7%. Both SFR and OZL had strong bounces and gold miners were slightly higher. Oil and gas stocks back in demand, STO up 1.5% and WPL rising 1.4%. Industrials firmed with WOW up 0.6% after resolving an underpayment issue, WES rose 1.3% and SEK and REA rallied well. Tech stocks also in the green, APT up 2.0% following the Square price higher. The All-Tech Index rose 1.42%. The Big Bank Basket up to $185.22 (0.8%) with MFG bouncing on broker comments and insurers strong on bond yield rises. In corporate news, EML’s attempt to sneak in bad news at the close yesterday failed and the stock dropped 14.6%. ERA have announced the cost of going to rehab, rose, rose, rose and the stock fell then rallied to close unchanged. In economic news, the RBA issued the financial stability report, worried about housing lending and cyber-attacks. Aren’t we all? 10-year yields soar to 1.64%. An issue for next weekperhaps. Jobs number tonight. 500k is the forecast.

MAJOR MOVERS:

  • Winners: WAF, PRN, STX, CHN, OML, CXL, MGX, ADT
  • Losers: EML, ASM, LKE, BRN, CUV, FFX, WHC, YAL.
  • Positive sectors: Miners. Industrials. Tech. Insurers.
  • Negative sectors: Coal.
  • Hi 7322 Lo 7267
  • Big Bank Basket: Higher at $185.22 (0.8%)
  • All-Tech index: Up 1.42% APT up 2.0%
  • Gold: Steady at AUD2406.
  • Bitcoin: Slips to US$53830
  • Aussie Dollar: Higher at 73.06c 10-YEAR YIELD: Higher again at 1.64%
  • Asian Markets: Japan up 2.2% Hong Kong flat. China back and up 1.2%
  • US Futures: Dow futures up 35 NASDAQ futures down 20.

STOCKS ON THE MOVE

  • WOW +0.63% paying another $50m for underpayment of staff.
  • CXL +6.95% great turnaround. Broker research with 640c target.
  • SFR +5.15% OZL +2.74% base metal stocks back in demand.
  • PRN +9.20% Chairman’s address.
  • MFG +5.57% brokers talk bargain hunting.
  • CDM +5.34% some clarification.
  • TNT +6.82% exploding higher.
  • RDT +4.03% drill results proving popular.
  • AT1 +10.94% diagnostic kits in demand.
  • DTL +6.46% good solid bounce.
  • MGX +6.90% mineral resource and ore reserves.
  • EML -14.59% Irish troubles.
  • RED -1.89% profit taking.
  • ERA -unchanged- Ranger rehab issues material.
  • WHC -3.29% YAL -3.21% coal sell off.
  • LCK -11.54% Top 20 holders.
  • AXE -3.62% Update on iTech Transaction.
  • Speculative Stock of the Day: Hannans (HNR) +26.09% a One Stock Competition entry roaring ahead on ok volume after announcing LiB recycling deal in Europe. First condition satisfied on its battery recycling MOU with final two by 30th November.

IN THE NEWS

  • Metcash (MTS) – CEO Jeff Adams to retire.
  • Magellan (MFG) – the AFR has an article today titled ‘Is Magellan good value or a value trap?
  • ERA – the company is conducting an ongoing review of the costs and schedule of rehabilitation of the Ranger mine but they have conceded that it is going to be material.
  • Email Payments (EML) warns that directions from the Central Bank of Ireland (CBI) could materially impact European operations of their pre-paid financial services business.

ECONOMIC NEWS/ BOND MARKETS

  • The RBA has stressed that prudential lending standards be maintained in the interests of stability. It is also worried about cyber-attacks.

CV19 NEWS

  • NSW sees 646 local cases and 11 deaths. Of the state’s population aged 16 and over, 89.79% have received one COVID-19 vaccine dose and 71.49% are fully vaccinated. Victoria had 1638 cases today.

ASIAN MARKETS

  • Chinese PMI recovers with PMI for September up to 53.4 from 46.7.
  • Dalian iron ore futures contract soar after holiday Jan futures up nearly 5%
  • Back from holidays, China drained the most short-term liquidity from the banking system in a year on a net basis. The PBoC offered 10 billion yuan (US$1.6 billion) of short-term funds to lenders, resulting in a net liquidity withdrawal of 330 billion yuan taking into account maturities.
  • Tony Abbott in Taiwan. Samsung reports highest profit in three years on chip shortage.

US AND EUROPEAN NEWS

  • US Jobs number tonight.
  • Senate passes short term funding deal to kick the can down the road yet again.
  • Muted and mixed open in store for European markets.
  • US Nuclear sub hits something in the South China Sea, injuring 11. Could have been Tony Abbott’s entourage.
  • US Diesel stockpiles are at 20-year lows. Only 31.2 days of demand. Could lead to energy shortages this winter in the US.
  • Elon Musk tells investor day that he sees no shortage of lithium. Moves HQ to Texas.
  • Newcastle United bought by Saudi sovereign wealth fund. Final price $558m. About the same as Messi gets paid.
  • Ireland signs up to Global minimum tax deal. New BoE chief economist warns of long-lasting inflation.
  • ARKK sees record outflows in September. Short seller cleans up with 9% gain in a month.

And finally…..

A little boy got on the bus, sat next to a man reading a book and noticed he had his collar backwards.

The little boy asked why he wore his collar backwards.

The man, who was a priest, said, ‘I am a Father.’

The little boy replied, ‘My Daddy is also a father, but he doesn’t wear his collar like that.’

The priest looked up from his book and answered, ”I am the Father of many.’

The boy said, ”My Dad has 4 boys and 4 girls and he doesn’t wear his collar that way!’

The priest was now getting impatient and said. ‘I am the Father of hundreds’ and went back to reading his book.

The little boy sat quietly thinking for a while, then leaned over and said to the priest . . . . ‘Maybe you should wear a condom and put your pants on backwards, instead of your collar.’

Clarence

XXXX