The ASX 200 powers up 92 points to 7405 (1.25%) as shorts rush to cover and the FOMO returns. Off its afternoon highs as US futures cool slightly. Few losers today as banks underperforming slightly though the Big Bank Basket up to $175.31 (0.5%) with CBA up 0.3% and NAB up 1.0%. MFG rose 4.3% after clarification of Hamish and his wife’s status. MQG rose 1.3% and the insurers also showed a clean pair of heels, QBE up 2.4% and IAG up 2.8%. Industrials firmed with ALL up 1.5% and WOW up 0.4% as REITS also did well, GMG resumed the position up 1.4%. Tech was a massive winner today as the Nasdaq charge spilled over into BNPL stocks and platform providers. Z1P rose another 10.9% making a20% gain in two days, APT up 4.2% on the Square price gain in the US. The All–Tech Index rose 2.8%. Healthcare also doing well. The Mexican blood issue a memory for CSL which was up 0.9%. Miners flew as iron ore prices continued higher, BHP up 1.9% and FMG up 3.3%. Gold miners left out slightly, but energy stocks pumped with WPL up 2.1% and STO up 2.3%. In corporate news, TGP sold a 50% interest in its digital arm. No much on the economic front today although Japanese GDP was weaker than expected. 10 -year yields 1.62% and the AUD at 71.36c
- Winners: APM, Z1P, MSB, 360, CTT, UNI, BTH, SZL
- Losers: SDF, AGG, PNV, PPK, VGL, TUA, DBI
- Positive sectors: Everything.
- Negative sectors: Spot fires.
- Hi 7443 Lo 7334.
- Big Bank Basket: Up to $175.31(0.5%)
- All-Tech index: Up 2.8%
- Gold: Weaker at $2505.
- Bitcoin: Slips to US$50302
- Aussie Dollar: Higher at 71.36c 10-YEAR YIELD: Steady at 1.62%.
- Asian Markets: Japan up 1.5% Hong Kong down 0.12% and China up 1.1%.
- US Futures: Dow futures up 93 NASDAQ futures up 81.
STOCKS ON THE MOVE
- APM +15.38% bounced back from recent sell off.
- Z1P +10.90% broker upgrades.
- 360 +9.2% tech bounce.
- CXL +6.48% risk back on.
- MIN +5.85% iron ore and lithium exposure.
- MSB +10.00% recent positive trial results cheer.
- CTT +8.20% tech rally.
- LCK +9.38% talking urea shortages.
- IXR +12.20% acquisition of rare earth separation technology.
- BYE +9.52% oil price rise.
- SKO +8.99% thin but firm on Omicron fears receding.
- VR1 +10.34% Metaverse play back in favour.
- PLY +4.70% strategic agreement with Shiba Inu Games.
- DEV -5.88% gives back recent gains.
- MMM -5.52% slide continues.
- TUA -2.50% profit taking.
- PNV-2.71% gives back yesterday’s gains.
- Speculative stock of the Day: Emmerson Resources (ERM) +% stunning 117m at 3.38% copper drill hit at Hermitage project. Congratulation Rob, been a long time coming.
IN THE NEWS
- ANZ looking to overhaul its archaic paper mortgage approval system,which is the slowest in Australia and has drawn much criticism. ANZ will soon offer customers 10-minute mortgages. ANZ is the only big four bank whose book has shrunk in the past six months, a period of $73 billion in system growth.
- Woodside Petroleum (WPL) aims to invest $5bn in emerging new energy markets by 2030. Investor day today.
- Telstra Corp (TLS) secures 2x10MHz in the ACMA’s 850/900 MHz band auction for $616m. The maximum amount of ‘low band’ spectrum Telstra was allowed to bid for under the competition limits set by the Government.
- Magellan Financial Group (MFG) – Hamish Douglas confirms split from his wife, Alexandra but neither have any intention of selling any shares.
- Fortescue (FMG) – Joined with AGL to examine a potential green hydrogen plant in the Hunter Valley at the site of AGL’s two huge coal-fired power stations.
- Money3 (MNY) – Record lending in November. $50m in the month, with its gross loan book increasing to $680m by the end of November.
- oOh! Media (OML) has sold Junkee Media to RACAT Group.
- Nickel Mines (NIC) – the company is buying a 70% in the Oracle nickel project in Indonesia.
- Sydney Airport (SYD) – No distribution for 2021.
- Aristocrat Lesiure (ALL) – CFO quits to go to rival. Garden will look nice.
ECONOMIC NEWS/ BOND MARKETS
- Westpac has raised rates for the fourth time in the past two months, lifting its three, four and five-year fixed rates by 30bps.
- Japanese GDP contracted an annualized 3.6% in the three months through September, revised figures from the Cabinet Office showed.
- Private consumption fell at a non-annualized pace of 1.3% from the previous quarter; initial estimate was -1.1%
- Capital spending dropped 2.3% vs. initial estimate of -3.8%
- New listing in Hong Kong Weibo began life with a 7% fall on debut. Weibo’s drop compares with a 15% average gain on the first session for 52 Chinese companies that started trading in Hong Kong this year.
- Chinese producer price index is forecast to have climbed 12.1% in November from a year earlier, slower than the 26-year high of 13.5% in October.
Evergrande- Still waiting on news of default and cascade to international bonds.
US AND EUROPEAN NEWS
- Biden has teleconference with Putin. He now has a piece of digital paper that guarantees peace in our time. Putin still yet to decide if he will invade Ukraine. EU will struggle to put in big sanctions as Russia supplies the energy for Europe. I bet Putin was really scared of Biden.
- US will demand the halt of Nord Stream 2 if Russia invades. Germans may not be that happy with the gas price and supply outcome.
- Australia has joined the US and NZ to not send officials to the winter Olympics. Suspect ScoMO would like to send George Christensen.
- Biden’s choice for bank regulator pulls out after GOP pressure.
- Probably no Xmas parties for Boris’s staff this year.
- Nestle is going to sell its stake in L’Oreal back to the company. 22.3m shares sold back at EUR400. Nestle will own 20.1% down from 23.3%.
- England all out for 147. Not a great start to their summer.