The ASX 200 closed down 20 points to 7300 (-0.3%) on a decent bounce from lows. 10-Year yields pushing higher again hurting tech stocks and yield sensitive REITs, but helping banks turn around. Miners did well on iron ore and record coal prices in China on flooding and mine closures. BHP rose 0.9%, RIO up 1.9% and FMG up 5.3%, coal stocks in demand, YAL up 13.8% and WHC rallying 6.2%. Gold miners drifted higher with NCM up 1.9% and oil and gas higher with STO up 1.5%. Healthcare was a little under the weather today, CSL down 1.0% and RMD down another 1.0%. Industrials also on the nose as SGR issues with organised crime and money laundering surfaced and the casino group dropped 23%. Travel stocks eased as NSW reopened for ‘Freedom Day’. WES fell 1.1%, TLS down 1.0% and tech under pressure with the All–Tech Index down 1.9% led by APT off 4.2% and XRO down 4%. REITs eased on higher rates and banks shrugged off earlier losses to see the Big Bank Basket up to $187.24, 1.1%. In corporate news, ALD looks set to win ZEL with both stocks rising, STX delivered its maiden Perth Basin gas reserve. ASIC crashed a ‘pump and dump’ chat room targeting YPB up 25.00%.

MAJOR MOVERS:

  • Winners: YAL, FFX, GRR, ERA, DGL, WHC, CXO, SWM, CRN.
  • Losers: SGR, STX, IMU, PTM, SKC, CXL, TUA.
  • Positive sectors: Iron ore. Energy (coal and oil) Banks. Insurers.
  • Negative sectors: Tech. Healthcare. REITS.
  • High 7314 Low 7250.
  • Big Bank Basket: Higher at $187.24(1.1%).
  • All-Tech index: Down 1.9%. APT down 4.2%.
  • Gold: Steady at AUD2400.
  • Bitcoin: Rallies to US$56235.
  • Aussie Dollar: Higher at 73.18c.
  • 10-YEAR YIELD: Higher again at 1.71%.
  • Asian Markets: Japan up 1.43%. Hong Kong up 2.35%. China back and up 0.41%.
  • US Futures: Dow futures up 11. NASDAQ futures down 55. Columbus Day.

STOCKS ON THE MOVE

  • FFX +12.61% lithium stocks on the move higher.
  • YAL +13.81% Chinese coal futures hit records on flooding.
  • ZEL +5.90% ALD takeover.
  • GRR +8.11% iron ore bounce.
  • CRN +5.92% WHC +6.19% coal records.
  • NVA +72.73% bonanza grades at RPM North.
  • KGL +12.50% massive sulphides intersected.
  • BTI +6.42% Siteminder IPO.
  • IAG +3.08% Business interruption test case win.
  • FMG +5.26% Forrest going green.
  • ATC +25.00% lithium battery update
  • SGR -22.90% money laundering allegations.
  • CXL -5.13% profit taking.
  • SKC -5.38% third shoe to drop. Chair retires.
  • APT -4.16% follows Square lower.
  • ADT -2.44% profit taking after recent run.
  • XRO -3.95% bond yields hurt techs.
  • WGO -17.07% independent reserves certification.
  • WMI -5.94% ex dividend.
  • Speculative Stock of the Day: YPB Group (YPB) +25.00% Pump and Dump chat room target. ASIC join the chatter.

IN THE NEWS

  • Cimic (CIM) -Won two contracts for maintenance and turnaround services for Viva Energy.
  • Fortescue Metals (FMG) to develop a global green energy manufacturing centre in Gladstone, Queensland.
  • Australian Pharmaceutical Industries (API) upgrades full-year underlying EBIT guidance, now expects ~$70m vs prior $66-68m. A stronger trading performance through suburban and regional Priceline stores is behind the upgrade. Results due October 28.
  • The Federal Court has ruled in favour of insurers regarding COVID-19 business interruption claims. The Federal Court found in favour of insurers on a significant number of policy wording questions and for policyholders on other questions. Both IAG and SUN have acknowledged the ruling. SUN said its $211m provision for potential business interruption claims remains unchanged.
  • Commonwealth Bank (CBA) – Knowingly underpaid staff $16m according to the Fair Work Ombudsman.

ECONOMIC NEWS/ BOND MARKETS

  • Nothing official today.
  • Goldman Sachs has cut the US GDP forecasts to 5.6% from 5.7%. Hardly worth worrying about really. The downgrade to next year is slightly more significant from 4.4% to 4%. Inventory and supply issues holding things back. There is also talk in the markets about the dreaded ‘stagflation’ becoming an issue.

CV19 NEWS

  • Sydney is back from 107 days of lockdown. Everyone rushes to Target and K-Mart.

ASIAN MARKETS

  • Sixty of the 682 coal mines in Shanxi have shut on heavy rains. Coal futures soar to all-time highs.
  • Lenovo tumbles most in 3 years after scrapping its plans for a Chinese Depository Receipt (CDR). Listing.
  • Ant Capital boosts capital to $5.4bn. Hong Kong’s Hang Seng Tech Index jumped as much as 3% in a third day of gains. Beijing imposed a smaller than expected fine for food delivery company Meituan. The stock rose nearly 9% at one stage.

US AND EUROPEAN NEWS

  • European markets opening up quiet and unchanged. Columbus day holiday in the US. Sharemarket open, bond market closed. 
  • ‘No Time to Die’ gets US$56m in opening weekend in the US. Fourth-biggest Bond movie opening.
  • Russia tells Europe to play nice and supply issues can be resolved.
  • US Navy engineer and wife charged with trying to sell sub secrets in exchange for crypto.
  • UK and Europe heading for a trade war over Northern Ireland protocols.
  • Ex-Pentagon chief says the US has already lost the AI war against China.

And finally…..

Clarence

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