The ASX 200 meanders around closing down 8 points at 7273 (0.1%) as banks slip slightly and miners under some pressure. The Big Bank Basket took its cue from BOQ which fell 4.3% on its results, CBA held its AGM and talked up tough love on lending, falling 1.6% in the process. The Basket fell to $184.94 down 1%. Insurers firmed, MQG unchanged, MFG continued its descent into darkness, down another 1.8%. Industrials were mixed, tech better led by APT up 0.8% on Square dances in the US. The All–Tech Index was up 0.8% with XRO doing well. Resource stocks were mixed, uranium and lithium players were highly sought after with PDN up 18.4 % and CXO doing well up 13.1%. Gold miners had their moments, PDI recovered from the crash yesterday up 14.7%, NCM firmed 0.9% and DEG had some good drill results though rise petered out at close. Iron ore a little on the nose and coal off, BHP down 1.0% and FMG seeing traders take profits, down 5.3%. Oil and gas better with COE up 1.8% and WPL up 0.6%. Healthcare did ok, CSL the standout up 0.5%. In corporate news, SGR rose 6.5% after some more IR spin on money laundering issues, ADT in a trading halt, raising a truck load of money and SFR selling out completely. In economic news, IMF downgraded Australian GDP and Treasurer Frydenberg followed suit.

MAJOR MOVERS:

  • Winners: PDN, BOE, A2M, CXO, ERA, GUD, SGR, EOS.
  • Losers: PGH, PEB, IMU, EHL, FMG, MIN, LFG
  • Positive sectors: Tech. REITs. Bond Proxies.
  • Negative sectors: Iron ore. Banks.
  • Hi 7294 Lo 7256
  • Big Bank Basket: Slips to $184.94(1.0%)
  • All-Tech index: Up 0.8% APT up 0.8%
  • Gold: Drifts higher to AUD2401.
  • Bitcoin: Drifts lower to US$56318
  • Aussie Dollar: Steady at 73.38c 10-YEAR YIELD: Falls back to 1.68%
  • Asian Markets: Japan down 0.26% Hong Kong delayed due to Hurricane, China up 0.35%
  • US Futures: Dow futures up 12 NASDAQ futures down 15.

STOCKS ON THE MOVE

  • PDN +18.37% uranium surge again.
  • CXO +13.10% lithium stocks on the march.
  • A2M +13.45% milk powder on the rise.
  • EOS +6.14% SpaceLink update.
  • SGR +6.54% further clarification on media reports.
  • BTH +5.24% tech bounce.
  • ERA +12.82% BOE +14.29% VMY +17.02% uranium on a burst. Blame the French.
  • KGN +5.85% getting ready for Xmas and cyber season.
  • BUB +38.89% very positive result in China.
  • HZR +24.32% hydrogen push from NSW.
  • PDI +14.71% solid bounce. Le chat est mort?
  • CBA -1.59% AGM comments and prepared to go harder on lending restrictions.
  • PGH -9.88% trading update.
  • BOQ -4.32% results.
  • CXL -3.99% profit taking continues.
  • EHL -5.88% the SWK party is over.
  • CRN -2.83% coal appeal fades.
  • MI6 -23.33% second day blues.
  • TIG -6.90% coal coming off the boil.
  • TVL -6.67% back to earth with a bump. NTA 27c.
  • GCY -9.52% Business plan and rejects WGX offer. Letter to shareholder.
  • Speculative Stock of the Day: Cannon Resources (CNR) +50.00% first drill results extend nickel mineralisation at Musket.

IN THE NEWS

  • Adriatic Metals (ADT) – the company has announced a new financing package including a placement to raise US$244.5m with Sandfire (SFR) also selling down its entire 16.6% holding at 280c. The company’s Vares project is located in Bosnia & Herzegovina and also has zinc, lead, copper and gold deposits. The money raised is being used for its DFS.
  • ADBRI’s (ABC) third-quarter update highlighted a positive outlook despite near term uncertainties. Sales volumes recovering from the earlier limitations placed on construction activity.
  • Bank of Queensland (BOQ) full-year cash earnings up 83% to $412m vs consensus $404.5m. CET1 ratio 9.80 vs company target 9-9.5%. Net interest margin (NIM) 1.92% vs year-ago 1.91%. Final dividend 22c, fully franked, taking the full-year payout to 39c, up 225% on FY20.
  • Zip Co. (Z1P) downgraded to neutral from buy at Citi.
  • Bubs Australia (BUB) Q1 gross revenue up 45% over the quarter to $18.5m. Gross revenue in its China-facing business almost doubled over the quarter. Management continues to push the Bubs brand into new market segments, now with representation in NZ, China, North America.
  • Betashares is launching a crypto ETF (CRYP) which will focus on pure play crypto companies not the digital tokens themselves.

ECONOMIC NEWS/ BOND MARKETS

  • Josh Frydenberg said he expects GDP for the September quarter to fall by 3% or more, up from his previous 2% or more guidance. That said, those estimates are not really what the market is focusing on. Most economists have been talking about a weak September quarter for some time now. In the RBA’s central scenario, the economy will be growing again in the December quarter and is expected to be back around its pre-Delta path in the second half of next year.The total number of dwelling units commenced rose 23.2% to a record high of 64,596 dwellings in the June quarter, in seasonally adjusted terms. The biggest quarterly rise in 20-years. CBA said the numbers mean building activity will be strong for at least the next 6 to 9 months. Below are the numbers of some companies leveraged to the building industry.
  • The Westpac-Melbourne Institute Index of Consumer Sentiment decreased by 1.5% to 104.6 in October from 106.2 in September. WBC notes the pace of vaccination and reopening activity will be a key factor in confidence over the coming months. Economist Bill Evans added the focus next week will be on the RBA’s revised growth forecasts which will be discussed at the Board meeting and formally released in the November Statement on Monetary Policy on November 5. WBC sees the RBA increasing the cash rate to 0.15% in the March quarter of 2023. The Reserve Bank believes its criteria for raising rates will not be met until 2024.

CV19 NEWS

  • Victoria heading for an early reopening as peak passes.

ASIAN MARKETS

  • China posted a trade surplus of US$66.76bn in September, beating estimates of a US$46.8bn surplus and US$58.34bn surplus in August.
  • HK suspends trading due to Hurricane Konpasu.
  • China reports some progress on US relations ahead of virtual sum.
  • China’s largest soy sauce maker Haitian, by sales, is set to raise the retail prices of its products due to higher costs. The company plans to increase the prices of soy sauce, oyster sauce and other products by 3%-7%. The stock is up 32% since mid-September

US AND EUROPEAN NEWS

  • European markets opening flat in quiet trade waiting for US numbers perhaps.
  • Record numebrs of Americans quit jobs in August, some have dubbed it the ‘Great Resignation’.
  • Cathy Wood has snapped up shares in Crispr Therapeutics just in time to see the stock fall 8.8% after an experimental blood cancer therapy trial disappointed.
  • Just when you thought that we had all heard the last of the wonderful Brexit divorce handled with suitable aplomb from Boris, its back to haunt the UK with Northern Ireland back as a sticking point and ill feeling everywhere. Mainly the French.Toujours la meme chose.
  • KKR led group is apparently close to the rights to hits from Lorde and The Weeknd. Didn’t realise Lorde had had more than one hit.
  • IMF warns to be very vigilant over inflation risks.
  • US bank chiefs confident that supply chain issues and inflation remains transitory.
  • Le Macron has unveiled a EUR30bn plan to boost the French nuclear, hydrogen, aerospace and food businesses. Anyone would think there is an election on soon.
  • Coinbase poised to launch a NFT marketplace. In old school terms that is Ebay.

And finally…..

Clarence

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