The ASX 200 shrugged off the latest tech wreck from Meta and focused on Amazon and the better futures finishing up 42 points to 7120 (0.6%). A relatively quiet day until a massive late surge on the match out as we await the US jobs number and start to digest the results in more detail. Banks were mixed with WBC up on broker comments and the big bank basket kicked higher to $170.62 (0.7%). MQG bounced 1.5% ahead of numbers next week though limited recovery in the wealth managers. JHG numbers not moving the dial much, falling 0.8%. Miners were mixed as BHP fell 0.5% and FMG rose 1.0% with lithium stocks turning positive late. S32 the stand-out, up 3.3%. Energy doing ok on oil prices, STO up 1.0% and WPL up1.1 %. Industrials were flat and CSL in the SPP pricing period rising 0.5%. The last day is Monday and then it closes. ALL rose 0.8% despite the Playtech deal came up lemons, SEK down 3.8% and QAN rising 4.9% as Joyce talked WA closures. In corporate news, NWS shot the lights out with good results up 5.7% and REA delivered but fell slightly down 0.4%. BLD fell 2.1% after the price was adjusted for the capital return. Shocked a few. The RBA releases the SoMP today, the statement of monetary policy and was greeted with a bit of a bounce in 10-year yields up to 1.96%. Asian market starting to come back online with HK the standout up 3.1%. Winter Olympics opens tonight. 150k jobs in January the US number to watch 3.9% the headline rate.
- Winners: RNU, BRN, OPH, SKO, AVZ, LTR, IHL, BET
- Losers: BCK, TLX, EHL, SEK, ARB, MYX, SGF
- Positive sectors: Energy. Tech. Banks. Healthcare. Industrials
- Negative sectors: None
- ASX 200 up 1.9% for the week
- High 7120 Low 7046 Same low as yesterday. Late close out surge.
- Big Bank Basket: Rises $170.62 (+0.7%)
- All-Tech index: up 0.4%
- Gold: Falls to $2528
- Bitcoin: Rises to US$37326
- Aussie Dollar: Rallies a little 71.46c
- 10-Year Yield: Rallies strongly on SoMP to 1.96%
- Asian Markets: Hong Kong back online up 3.1% and Japan up 0.6%
- US Futures: Dow up 219 Nasdaq up 303
Futures and Highs and Lows
Stocks on the Move
- RNU +14.81% $185m conditional loan presentation.
- BRN +9.12% resumes upward momentum.
- NWS +5.73% great numbers.
- BET +5.76% back in the green.
- OPH +6.42% another good day following performance update.
- PIQ +10.20% unique biomarkers identified.
- VGI +0.23% good kick along briefly.
- TBN +1.67% oil price helping.
- PBH +5.11% approved as a licensed bookie in Ontario.
- BCK -9.09% new port allocation at Port Hedland.
- CTT -1.68% Cat Rock buys more now 8.71%. Advertising spend up to $26m
- BLD -2.07% don’t panic – ex capital return. Price adjusted to reflect.
- Speculative stock of the Day: Carnaby Resources (CNB) +49.26% one we have highlighted before for its Nil Desperandum copper discovery which is shaping up nicely with good results again today. Those lucky enough to get stock in the placement at 130c are sitting pretty now.
In the News
- News Corp (NWS) Q2 adjusted EPS of US$0.44 was well ahead of consensus of US$0.28.
- REA Group (REA) first-half core profit slightly ahead of estimates at $225.8m vs estimates of $225.6m. Revenue beat estimates at $590.4m vs consensus $571.6m. Core EBITDA missed slightly at $368m vs consensus $368.3m. EBITDA margin down ~5% vs a year ago. Dividend of 75c up 27% vs a year ago. In January National listings were up 14% vs 2021, Sydney listings up 19% and Melbourne up 5% although growth rates are expected to slow in the second half.
- Janus Henderson Group (JHG) Q4 adjusted EPS came in ahead of consensus at US$1.05 vs consensus US$1.03. Revenue slightly missed at US$697.2m vs consensus US$697.5m. While management fees were above expectations, performance fees missed estimates.
- Reporting agency Benchmark Mineral Intelligence (BMI) says Australian spodumene concentrate (source of lithium) was $US2400 per tonne in January, up from $US1650 per tonne in December. A 45% increase. Low inventories and high demand keeping prices buoyant.
Economic News/Bond Markets
The RBA SoMP:
- RBA forecasts for economic growth and inflation. Peak estimates are highlighted with a red box. GDP growth to peak in December 2022 at 4.25%, down from previous forecasts of 5.5%. Unemployment to get to 3.75% vs 4.25% previous and inflation to lift to a high of 3.75% vs prior 2.75%.
- NAB has revised its house price forecast to be 11% down next year after being flat this year in Sydney and Melbourne.
- QANTAS CEO likens WA to North Korea. The Hermit State.
- Morrison defends WA Premier in keeping borders closed. Dutton suggests using ADF with aged care crisis. None of them like cricket.
- NSW records 253 COVID-19 deaths in one week including 136 aged care residents, four people aged over 100.
- Hong Kong back. And some.
- South Korean consumer prices stayed well above the Bank of Korea’s target in January. Consumer prices rose 3.6% from a year earlier, edging down from a 3.7% gain in December.
- Japan’s five-year yield rises to zero first time since 2016
US and European News
- US jobs number tonight. Expect more volatility.
- German yields turn positive. Negative yielding bonds falling quickly.
- Jeff Bezo’s new megayacht is so big that it will not fit under the bridge so they are going to dismantle the historic bridge in Rotterdam to make it happen.
- Four close aides to Boris have resigned. Journalist asks a UK treasury official is this was like the last days of Rome for Boris? He said no. Rome had more fun.
- Beijing Olympics officially kicks off tonight. Artificial snow everywhere.
- US gets their man but says Putin is looking for an excuse to invade Russia.
- Texas power grid on a storm watch as wild weather in US continues to bite.
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