The ASX 200 fell 51 points to 7327 (0.7%) after negative leads from overseas, FOMC caution and local CV19 cases started to increase. Mammoth CSL capital raising probably not helping either as other healthcare stocks came under pressure. RHC down 1.5%, RMD off 2.7% and COH down 1.6%. Industrials eased back with tech hard hot again. The All–Tech Index down 2.8% led lower by WTC off 0.7% and APT down 3.1% as once again Block US price gave no reasons to be cheerful. TLS fell 0.2% and REA down 3.7% and SEK 3.4% lower, REITs slipped with GMG down 2.2% and SGP. In miners iron ore miners were weaker as BHP fell 0.5%, gold miners eased NCM down 2.2% and energy stocks off as STO fell 0.8% and WPL dropped 0.7%. Banks were mixed as WBC received a first strike with NAB 0.5% better and the Big Bank Basket down modestly to $174.10. Incorporate news, WES look to have blocked WOW from the API ambitions. On the economic front consumer confidence slipped slightly by 1 point.
- Winners: INR, REG, GLN, ABR, DGL VUK, AWC.
- Losers: OFX, CTT, SZL, BET, AMI, PBH, PNV, HUB.
- Positive sectors: None.
- Negative sectors: Tech. Healthcare. Industrials. REITs.
- Hi 7375 Lo 7326. Narrow range again.
- Big Bank Basket: Slightly lower at $174.10 (0.1%)
- All-Tech index: Sold off heavily down 2.7%
- Gold: Slips to $2489
- Bitcoin: Slightly better to US$48260
- Aussie Dollar: Falls to 71.13c 10-YEAR YIELD: Rises to 1.56%.
- Asian Markets: Japan unchanged Hong Kong up 0.2% and China down 0.3%.
- US Futures: Dow futures up 41 NASDAQ futures up 13.
STOCKS ON THE MOVE
- TUA +3.4% back on track.
- INR +4.94% buyers still hungry.
- AGL +2.41% stirring.
- DGL +4.10% rally continues.
- FMG -0.32% signs deal to investigate Gabon iron ore opportunity.
- WES +0.09% blocks WOW API bid.
- QUB -1.83% sale of Moorebank Logistics centre.
- IFL +0.56% another ASIC investigation.
- WBC +0.29% first strike against remuneration.
- HLO +16.16% sell ANZAC business to CTD.
- EVN -5.49% Sale of Mt Carlton completed.
- CTT -8.97% sentiment turns.
- PBH -7.58% US sports disruption.
- BET -8.29% slide continues.
- VUL -5.92% profit taking.
- CHN -4.26% Falcon Metals demerger completed.
- CRN -3.83% cuts production guidance
- PNV -7.32% pessimism back.
- HUB -7.25% correction to CL1 announcement.
- CKA -6.90% progress towards first coal for BBM projec
- Speculative stock of the Day: BNK (BBC) +15.94% agreement to sell Finsure for $151m to MAF. Nothing else of any consequence volume wise.
IN THE NEWS
- Corporate Travel (CTD) – acquisition of Helloworld’s (HLO) Australian and NZ business for $100m in cash and $75m in shares escrowed for one year.
- MA Financial (MAF) – upgrades guidance targeting $145m deal to acquire Finsure. MAF expects earnings per share to grow 15 to 25% above FY 2021, when including the Finsure acquisition.
- Macquarie Telecom (MAQ) – has told investors it expects EBITDA between $39m and $40m in H1 FY 2022. It said it also expects to hike investment in staff and tech over FY 2022 as it sees strong demand for cyber security services in its government and cloud services sectors.
- Challenger (CGF) – Nick Hamilton has been appointed the new chief executive to succeed Richard Howes.
ECONOMIC NEWS/ BOND MARKETS
- Mess exodus at RBNZ with ten senior managers have left or will leave the central bank. Finance minister backs Orr after grilling by oppositions MPs.
- Westpac-Melbourne Institute Consumer Confidence Index for December fell 1% to 104.3. The index remains comfortably in positive territory where optimists outnumber pessimists.
- NSW Health minster warns of possible 25,000 CV19 cases a day by the end of January. Today’s case number leaping to 1360. Premier says take responsibility for yourself.
- In China, growth in fixed-asset investment eased to 5.2% in the first eleven months of the year. Property investment grew 6% in the same period, slowing from 7.2% during the January-October period.
- Retail sales weaker than expected, industrial output stronger.
- Japanese PM apologised for the government’s mishandling of economic data after media reports said it overstated construction order figures, a key numbers set used to calculate economic growth, for years. The transport ministry had been double counting some data in its monthly construction orders survey.
- Chinese New-home prices in 70 cities, excluding state-subsidized housing, declined 0.33% last month from October when they fell 0.25%. Home sales slid 17% from a year earlier, improving slightly from a 24% decrease in October.
US AND EUROPEAN NEWS
- FOMC Meeting tonight. Dot plots and Q&A from JP.
- US has voted in the House to increase the debt ceiling.
- Congress passed legislation Tuesday that would ban goods coming from China’s Xinjiang region to the U.S. unless companies can prove that they have not been made with forced labour. The legislation now goes to the Senate, where it has bipartisan support.
- Crypto prices went crazy briefly as Coinbase and Coinmaker glitched sending some holders into hysteria on social media with their gains.
- UK drops 11 countries from the Red List. No point now. UK more of a problem.
- Toyota will spend US$35bn on its push into EVs with 30 battery car models by 2030.