The ASX 200 fell 31 points to 7354 (-0.4%) as some caution set in ahead of the US CPI number tonight and tech sell-off in the US. Across the board losses but tech under some pressure, APT dropped 4.4% as a Block proxy pushing the AllTech Index down 0.4%. Z1P dropped 2.4% in sympathy for the devil. WTC jumped in a flash rising 2.9% and other large tech stocks also held firm. TLS up 0.3% and SEK giving shelter up 0.3%. The banks fell with the Big Bank Basket having no expectations falling to $174.55 (-0.5%). CBA down 0.3% and NAB down 0.2%. MFG found some support up 0.9% but insurers weakened. CSL in the sickbay dear doctor down 2.1%, SHL off 1.6% and RMD found no satisfaction down 2.7%. Industrials saw modest losses, you can’t always get what you want, ALL down 0.5% and TAH off 1.2%. Miners let it bleed as BHP dropped 0.6%, FMG was waiting on a new friend after Elizabeth Gaines announced she was out of time. FMG fell 0.8% with gold stocks needing an emotional rescue as NCM fell 1.7% and NST off 1.4%. No satisfaction on the corporate front, news thin on the ground. Wild horses couldn’t stir anything on the economic front. US CPI tonight. Asian market torn and frayed but no 19th nervous breakdown on Evergrande news. Tumbling dice saw 10-year yields slip back to 1.63%

MAJOR MOVERS:

  • Winners: GRR, SYA, RBL, BLX, PGH, INR, ILU, TPW.
  • Losers: AVZ, BOE, NTO, APT, IAP, CXL, WHC.
  • Positive sectors: Spots of positivity.
  • Negative sectors: Banks. Tech. Healthcare. Miners.
  • High 7376 Low 7337. Narrow range again
  • Big Bank Basket: Falls to $174.55 down 0.5%
  • All-Tech index: Down 0.4%
  • Gold: Steady at $2486.
  • Bitcoin: Slips to US$48326
  • Aussie Dollar:  Lower at 71.45c 10-YEAR YIELD: Slips to 1.63%
  • Asian Markets: Japan down 0.5% Hong Kong down 0.6% and China down 0.3%. No wipe out though
  • US Futures: Dow futures down 23 NASDAQ futures up 14

STOCKS ON THE MOVE

  • GRR +8.53% special dividend of 10c.
  • RBL +10.26% book squaring.
  • TPW +6.95% traders short covering.
  • TLX +6.27% Illunccix EU submission.
  • ATL +26.13% Proposed merger with THL.
  • LMG +16.67% bargain hunters.
  • LCK +9.68% urea issue back in focus.
  • EOS +8.80% the drums of war.
  • BMT +9.62% good move higher.
  • BOE -6.50% uranium runs out of steam.
  • AVZ -8.53% capital raising.
  • IAP – 4.23% completion of intso placement.
  • APT -4.37% follows the Block lower.
  • CXL -4.00% profit taking continues.
  • FDV -2.22% high PE players under pressure again.
  • BMN -10.94% uranium sell-off.
  • HZR -6.94% change of director’s interest.
  • Speculative stock of the Day: Iron Bark Zinc (OBG) +14.89% relatively good volume as the company raises $4m to fund ongoing Citronen finance activity.

 IN THE NEWS

  • Fortescue Metals Group (FMG) to transition from a pure resources company to a ‘vertically integrated’ green energy AND resources company. CEO Elizabeth Gaines to transition from the CEO role will continue as a non-executive director. The board has started searching for a new CEO. The writing has been on the wall for some time with many expecting an announcement of this sort ever since Twiggy made his ambitions clear to decarbonise FMG and pursue greener technologies. Back in March FMG announced it would produce green hydrogen from 2023 and target green steel production.
  • IOOF Holdings (IFL) completes name change to Insignia Financial. Code will stay the same.
  • Westpac (WBC) has amended the terms of its off-market buyback following share price weakness, adding the lower price may lead to Westpac buying back more shares than was originally contemplated. Said it remains committed to buying back up to $3.5bn in shares. The buy-back tender discount range has been changed to 0-10% from 8-14%. The closing date for the tender period has been extended to 19:00 (Sydney time) on Friday, February 11, 2022.
  • Home Consortium (HMC) repeats FY22 guidance at AGM. Sees pre-tax funds from operations (FFO) 26c with a distribution of 12c.
  • Oil Search (OSH) and Santos (STO) have legally completed their $23bn merger. New STO shares will start trading from December 13th.
  • Grange Resources (GRR) – declares a 10c special dividend. Total now 14c in 2021 in dividends.

ECONOMIC NEWS/ BOND MARKETS

  • Deutsche Bank economist Phil O’Donaghoe thinks the speed of the bounce back makes it possible the budget could be close to back in black by 2024-25.
  • UBS chief economist George Tharenou is predicting the 2021-22 deficit to be $27bn ahead of forecast, at $80bn. Commonwealth Bank head of Australian economics Gareth Aird is tipping $76bn.

CV19 NEWS

  • A mouse is at the heart of CV19 alert in Taiwan after a lab worker was bitten and has tasted positive. First case in a month.

ASIAN MARKETS

  • Nevergrande declared in default as huge restructuring is now set in train. Fitch cuts Evergrande’s rating to ‘restricted default’ after it officially defaulted on two coupon payments on Monday.
  • The PBOC reiterated today that risks posed to the economy by Evergrande’s debt crisis can be contained, citing the developer’s “own poor management” and “reckless expansion” for the problems it faces.
  • Nissan has temporarily suspended production of its top-selling model in Japan, the Roox.

US AND EUROPEAN NEWS

  • It’s all about the CPI tonight. US inflation tipped to reach 6.7%, core 4.9%.
  • The Bank of Canada will keep its 2% inflation target in a new mandate.
  • US reaffirms its commitment to Ukrainian sovereignty.

Have a great weekend.

Clarence

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