The ASX slips 10 points to 7424 (-0.14%) as Chinese PPI surges and iron ore falls on Dalian futures exchange. Miners were on the nose today with BHP down 2.7% and FMG off 2.1% as futures tumbled in Asia, S32 off 2.3% as base metals and lithium stocks also came under pressure, ORE down 4.7% and PLS off 3.8%. Even battery tech stocks slid with NVX down 14.1% and TLG off 8.6%. CHN kicked hard again up 4.9% as brokers upgraded targets. Gold miners held up better but were still a little troubled, NCM up 0.6% and DEG off 1.3%. Energy stocks failed to fire despite higher crude prices as mergers and corporate actions overshadow the sector. Banks saved blushed today as NAB had a great day bouncing hard on broker upgrades as it slipped into second spot on brokers league table, the stock closed up 4.4% and dragged up WBC by 0.8% and ANZ 0.8%. The Big Bank Basket closed higher at $189.89. Other financials slipped slightly, MFG down 2.8% and QBE off 1.5%. Industrials mixed but drifting lower for choice. REA down 2.2%, WOW off 0.6% and QAN falling 2.2% as travel stocks pulled back from recent optimism. Tech under pressure as APT followed Square lower by 2.2%. The All–Tech Index down 0.9%. In corporate news, PPH reported and needed more than a prayer to avoid a sharp sell off down by 13.4%. VUL down 6.7% on acquisition of a data set. The Noosa Mining conference kicked off today and some good moves in explorers but very stock specific. On the economic front, we had better consumer confidence and new home sales. The 10-year yield slipped slightly to 1.73% and Asian markets fell hard on Chinese property woes.
- Winners: ABR, CHN, UMG, NAB, CCX, 360, TUA, WTC, DMP.
- Losers: NVX, IMM, PPH, MNS, NMT, TLG, IHL, CXO
- Positive sectors: Banks.
- Negative sectors: Miners. Energy. Lithium. Battery Tech. Insurers. Tech.
- Hi 7461 Lo 7412.
- Big Bank Basket: Up to $189.89 (0.9%).
- All-Tech index: Down 0.9% APT down 2.2%
- Gold: Higher at AUD2480
- Bitcoin: Lower at US$66540
- Aussie Dollar: Lower at 73.66c. 10-YEAR YIELD: Falls to 1.73%
- Asian Markets: Japan down 0.6% Hong Kong down 1.2% and China down 1.4%.
- US Futures: Dow futures down 115 NASDAQ futures down 55.
STOCKS ON THE MOVE
- CHN +4.94% positive broker commentary.
- UMG +4.62% takeover speculation.
- KGN +2.21% Singles Day.
- LCK +33.33% hydrogen stock waking up.
- NAB +4.36% broker upgrades.
- OCL +2.44% thin as always – director’s selling.
- SWM +2.65% broker upgrades.
- VR1 +17.86% enterprise sales and TCV update.
- PRL +12.90% pushed hard by promoter.
- FBR +8.33% MOU with UAE ministry.
- IMM -13.57% final Phase IIb AIPAC clinical trial results.
- PPH -13.41% interim results. Not livin’ on a prayer.
- VUL -6.65% data acquisition. JCap winning.
- MNS -11.72% TLG -8.64% battery tech down today.
- NMT -9.09% profit taking.
- AVZ -5.71% up one day down the next.
- ADN -17.50% merger with MEP.
- IBX -16.00% response to ASX query.
- Speculative stock of the Day: Renu Energy (RNE) +34.15% acquisition of Countrywide Renewable Hydrogen. Scrip issued at 6.88c.
ECONOMIC NEWS/ BOND MARKETS
- The Westpac-Melbourne Institute Index of Consumer Sentiment increased 0.6% to 105.3 in November from 104.6 in October. The index remaining relatively steady over the last two months despite easing of lockdowns in NSW and VIC. Adding some perspective, the index had jumped more than 30% in the two months to October.
- Confidence underpinned by the vaccine rollout. WBC added the November reading has significance given the lead up to key trading periods in December. 60% of people expected to spend the same on Christmas.
- Added the changing interest rate environment may also be starting to impact the outlook for house prices. The Westpac Melbourne Institute House Price Expectations Index fell by 2.3% in November but remains at a very high level of 169.4.
- Westpac expects that the RBA’s current weekly bond-buying program will be reduced to $2–3bn from $4bn with the next review most likely in May.
- New home sales climbed 11% in October, as demand strengthened despite the end of the HomeBuilder grant, data from Housing Industry Association shows. A total of 5590 new homes were sold compared with 5030 in September. Victoria led the charge with a 29.1% monthly rise to 2093 sales, followed by Queensland with 11.1% to 873. In NSW, new home sales rose by 3.9% to 1211, but they fell by 4% in SA and by 2.8% in WA.
- Scott Morrison says ‘capitalism not government will fix climate change’. Paul Keating speech at Press Club. ‘Australia has lost its way”.
- The ACT is leading the way with almost 96% (95.6% of those aged over 12 fully vaccinated.
- Chinese Oct PPI up 13.5% Y/Y up 2.5% M/M. Above expectations of 12.4%. CPI up 1.5% Y/Y beating expectations of 1.4% Food October CPI down 2.4% Non-Food CPI up 2.4%Y/Y. 13,5% gain is the highest PPI on record.
- The benchmark CSI 300 Index declined 1.4% as of the mid-day break, set for its biggest slide since Sept. 14.
- CK Infrastructure a shareholder in gas and electricity businesses invested recently in the hydrogen private equity fund HYCAP.
- HK border may open in January. Chinese developer Fantasia plunged as much as 52% in Hong Kong, resuming trading after a six-week halt. Evergrande also facing the end of its 30-day grace period with $148m of coupon payments due today.
- China close to the launch of its first modern aircraft carrier.
US AND EUROPEAN NEWS
- US CPI numbers tonight.
- Biden -Xi virtual summit to be held next week.
- GE to split into three businesses.
- Rivian debut could be huge. IPO price US$78. Valuation of US$66.5bn.
- Federal judge tells Apple to open its store app up.
- Coinbase falls as users and volumes decline.
- Door Dash buys Wolt a Finnish delivery app for EUR7bn in scrip.
- Four of the big five car makers fail to back COP26 emissions agreement.
While walking along the sidewalk in front of his church, our minister heard the intoning of a prayer that nearly made his collar wilt. Apparently, his 5-year-old son and his playmates had found a dead robin. Feeling that proper burial should be performed, they had secured a small box and cotton batting, then dug a hole and made ready for the disposal of the deceased.
The minister’s son was chosen to say the appropriate prayers and with sonorous dignity intoned his version of what he thought his father always said: ‘Glory be unto the Faaather, and unto the Sonnn, and into the hole he goooes.’ (I want this line used at my funeral!)