The ASX 200 fell 167 points to 7176 (2.3%) below support and the bottom of the recent trading channel. Off lows is the only positive. Largest loss in a year. Banks were struck down hard with the Big Bank Basket down to $174.78 (-1.3%) led by CBA off 1.3%, WBC down 0.6% and MQG down 3.8%. Insurers whacked with QBE down 2.2% and SUN off 1.9%. Big falls too in wealth managers and platforms, MFG down 3.9% and NWL falling 6.0%. Healthcare also on the nose as nowhere to hide, CSL down 2.5% and now well and truly under water, SHL down 3.1% and RMD falling 1.7%. Industrials were walloped, WES down 2.3%, TLS down 1.5% and REA hit 3.6%. REITs fell too despite 10-year yields down at 1.90%. Tech smashed with CPU down 2.3%, BRN off 11.6% and MP1 down 4.4%. SQ2 fell 2.3% with the All–Tech Index down 3.0%. Resources though which have held up for so long capitulated after the BHP vote with the stock falling 4.8%, RIO saw Novax retribution and fell 4.1%, FMG down 2.1% and lithium shares depressed. PLS off 6.1% and MIN off 3.1%. Rare earths also in trouble, LYC down 7.5% and base metals off to despite price rises on the LME. Oil was weaker in Asian trade dragging down WPL by2.4 % and STO by 2.6%. In company news, WHC warned of the effects on production of La Nina falling 6.10%, NXL disappointed yet again, when will investors learn, and dropped 22.8%. In economic news, ANZ jumped on the RBA ‘will shake things up’ band wagon after such good unemployment numbers yesterday. Nothing on the economic front, Asian markets flop Japan down 1.9%, HK down 0.8% and China off a similar amount. 10-year yields fall to 1.9%
- Winners: 88E, DGL, HDN, RMS, BLD, GOR, KGN, NST
- Losers: NXL, RNU, BRN, HAS, PDN, SYR, SYA, NMT
- Positive sectors: Lifejackets.
- Negative sectors: Everything.
- Hi 7321 Lo 7153 Big volumes.
- ASX down 3% for the week.
- Big Bank Basket: Falls to $174.78 (-1.3%)
- All-Tech index: Down 3.0%.
- Gold: Higher at $2560.
- Bitcoin: Tumbles below USD40,000 – Lowest level in five months.
- Aussie Dollar: Tumbles to 71.88c 10-YEAR YIELD: Falling to 1.89%.
- Asian Markets: Japan down 1.9% and China down 0.8%.
- US Futures: Dow futures down 93 NASDAQ futures down 190 (again). Netflix will not help.
STOCKS ON THE MOVE
- DSK +4.44% candles in the wind.
- PDI +6.12% overlooked gold stock.
- DGL +3.89% bucking the trend maybe AdBlu shortage.
- 88E +5.00% trading starts on US OTCQB
- AVN +1.25% election for HomeCo scrip.
- KGN +1.66% bargain hunting.
- NXL -22.82% company update.
- BRN -11.59% question marks.
- RNU -12.96% profit taking.
- AKE -6.67% broker upgrades. Didn’t help.
- RMS +2.90% GOR +1.99% some love for gold miners.
- CGS -15.95% investor update.
- 4DS -16.52% back and fill.
- PLY -11.51% profit taking.
- BOE -8.66% PDN -10.98% uranium on the nose.
- ARR -11.63% EUR -12.90% names see profit taking.
- Z1P -7.76% still cheap and getting cheaper.
- SQ2 -2.34% 281m shares will come out of escrow on January 28th.
- RIO -4.14% gets ‘serbed’ on lithium project. No Vax no Mine.
- Speculative stock of the Day: Yes, there is one today, Carnavale Resources (CAV) +33.33% RC drilling results with Bonanza gold three days ago drawing punters and good volume.
IN THE NEWS
- Nuix (NXL) – 1H revenue will fall short of earlier forecasts. Pro-forma EBITDA will be materially lower, coming in at $13m to $15m against $31.6m.
- Whitehaven Coal (WHC) -% downgraded production guidance for the full year by 5% because of the coronavirus and the La Nina climate event. Managed ROM (run of mine) coal production for FY22 is now 19 to 20.5m tonnes down from 20 to 21.5m tonnes.
ECONOMIC NEWS/ BOND MARKETS
- S&P has affirmed the ratings on seven Australian and NZ regional banks under revised criteria.
- ANZ expects the Reserve Bank of Australia to end quantitative easing and start quantitative tightening (QT) in February.
- WA premier, Mark McGowan has delayed the state’s reopening over fears of lagging booster vaccination rates. Reopening could be months away. Graham Turner from Flight Centre considering legal challenge.
- Adele has postponed her Vegas residency over CV19 infections. Her Vegas residency had seen tickets change hands for up to US$30,000. Really rolling in the deep.
- Xi vows no mercy in battle against corruption and big tech.
- Ant Group implicated in corruption scandal by Chinese media.
- Vigilantes in HK are trying to stop the great hamster massacre. No country for old hamsters.
- Beijing Winter Olympics two weeks away.
US AND EUROPEAN NEWS
- JP Morgan’s CEO gets a 9.5% pay rise to US$34.5m.
- Jeremy Grantham has doubled down on his crash call. Predicts drop of almost 50% in benchmark stocks.
- Biden ramps up the warnings to Russia. Blinken in Geneva today with Russians.
- The French are floating a potential security pact with Russia. Sounds like an EU nightmare.
Why did Novak have to pay for his flight to Australia with his Mastercard?
Apparently his VISA doesn’t work.
What did Djokovic say to his doctor when he asked him if he wanted a vaccine?
“No thanks, they don’t call me Novaks for nothing”.
Did you here about the tennis player with a really dusty house?
Novak apparently is getting kicked out of Australia by border control.
Serbs him right for not getting vaccinated.
Have you heard about the nickname for the worlds best tennis player?
Australia have denied entry to Djokovic. Border Control released a statement about it.
“Novak seen, no entry”
Djokovic has apparently started an airline for the unvaccinated.
It is called “Novaks Airlines”.
Have a good weekend.