ASX 200 pushed 17 points ahead to 6807 (+0.3%) despite US futures weakness on Walmart news. Fed watching continues. US results are in focus tonight. Resources carried the day with iron ore producers doing well, BHP up 2.5%, RIO up 1.9% and FMG rallying 2.5%. Base metals were also better as OZL ran 1.1% and lithium stocks firmed. Oil and gas doing ok as crude prices rose and Russia cut back gas supplies in Europe. STO up 2.6% and WDS up 2.8%. Coal stock finding friends again with WHC up 6.4%. Some tech in demand as ZIP led the charge up 19.9%, with WTC up 0.8% and XRO falling 1.3%. The AllTech Index flat. Industrials were sloppy, CSL down 1.5% and ALL to find any cherries down 1.8%, with TCL coming under fire down 1.1% and WOW off 1.3%. Banks were mixed but ANZ still a firm fave with the Rights up 0.8%. The Big Bank Basket steady at $170.16. In corporate news, MYR delighted shareholders with some good numbers up 21.3%, quarterlies in SYA and PDN with VUL up 4.9% on council approvals. GRR got whacked 11.4% after its quarterly disappointed. NTO blew up on its Q2 update, imploding 22.7%. In economic news, agriculture is going well, Asian markets better with China up 0.8% and HK up 1.4%. 10 -year yields ease to 3.34%.

Headlines

  • Winners: ZIP, PDN, SLX, KAR, NAN, WHC, LKE, TLX
  • Losers: GRR, IRE, QAL, FLT, PRU, BRG, CTD
  • Positive sectors: Iron ore. Base metals. Lithium. Coal. Oil.
  • Negative sectors: Healthcare. Industrials.
  • High 6815 Low 6783 Low volume. Small range.
  • Big Bank Basket: Steady at $170.16 ANZ Rights trading slightly higher.
  • All-Tech index: Flat.
  • Gold: Lower at $2473
  • Bitcoin: Drifts back to US$21,146.
  • Aussie Dollar: Steady at 69.58c
  • 10-Year Yield:  Slightly lower at 3.34%
  • Asian markets: Japan down 0.2%. China up 0.7% and HK up 1.4%
  • US Futures: Dow down 114 Nasdaq 48 Walmart warning weighs.
  • European markets flat on opening. UBS results in focus.

Major Movers

  • ZIP +19.88% buyers back and turnaround happening.
  • KAR +7.67% good bounce
  • PDN +8.13% quarterly report.
  • SLX +7.94% buyers back in.
  • BGL +4.83% quarterly report.
  • SYA +5.26% placement support.
  • MLD +23.75% takeover offer from Theiss at 102.5c
  • MYR +21.25% trading update.
  • OEC +22.50% signs new contract with Singapore customer.
  • DDH +17.46% delivers record FY22 performance.
  • ADN -12.36% signs binding Halloysite-Kaolin offtake term sheet.
  • PGC +10.71% trading update.
  • NTO -22.70% blows up on trading update.
  • IPD -12.28% CEO leaves.
  • GRR -11.41% quarterly report.
  • FLT -5.62% broker downgrades.
  • PRU -5.33% June quarter report.
  • Speculative Stock of the Day: Top of the pops was Security Matters (SMX) +150.00% announced merger with Lionheart III Corp.

In the News

  • Myer Holdings (MYR) expects NPAT of $55-60m and revenue of $2.99-3.00bn. Would be an 11.2% improvement in profit vs FY21.
  • Lark Distilling (LRK) Q4 net sales $6.8m, up 72% vs a year ago. Added a search for a new CEO is progressing well and has narrowed the list of global candidates.
  • Origin Energy (ORG) to invest an additional $163m in Octopus Energy to maintain a 20% interest. Recent capital raisings now value Octopus at more than £3.5bn, representing close to a four-fold increase in value since Origin’s initial investment in May 2020.
  • Woolworths Group (WOW) Chair Gordon Cairns to retire following the AGM on October 26. Scott Perkins appointed replacement.
  • Tabcorp (TAH) considering offers to sell all or part of Intecq, a price tag wasn’t suggested.
  • Paladin Energy (PDN) Q4 net cash used in operating activities -$1.2m. Cash and cash equivalents US$177.1m at the end of the June quarter.
  • Perseus Mining (PRU) Q4 gold production 122.3Koz at AISC US$1,004/oz vs quarter-ago 130.5Koz at AISC US$908/oz. Guidance for December 2022 Half Year of 240-265Koz produced at an AISC of US$1,000 to US$1,100/oz.
  • Regis Resources (RRL) FY gold production 437.3Koz at AISC of $1,591/oz vs guidance 420-475Koz at $1.425-1.625/oz.

Economic News/Bond Markets

  • Australian agriculture had a bumper year in 2020-21, with a 17% increase in value to $70.9bn according to data released today by the Australian Bureau of Statistics (ABS).
  • Wayne Byers to step down from APRA. Off to be Trade Commissioner in NY?
  • Multibillion-dollar, Melbourne developer Caydon Property Group, has collapsed in biggest private developer failure since Ralan.
  • Goldman Sachs has warned that the growing Chinese property crisis will hurt iron ore prices.
  • Used car prices up 7.5% in June quarter. Utes up 8.5%.

Asian Markets

  • Alibaba’s jumped on Tuesday after the company said it will apply for a dual primary listing in Hong Kong.
  • South Korea Q2 GDP expands 0.7%, giving scope for new rate rises
  • China’s economic recovery gained momentum in July as business activities resumed and confidence improved.
  • China Southern Power Grid the country’s second-largest operator supplying five provinces, said soaring demand lifted power generation to a record 223 gigawatts on Monday, 3% higher than last year’s peak load.

US and European Headlines

  • Walmart warns on customer spending and will cut prices to shift stock.
  • Alibaba scales back global expansion plan to rival Amazon. Amazon raises prices in Europe for Prime citing inflation.
  • Russia cuts deliveries of gas to Europe.
  • UBS announced that it had missed expectations for the second quarter of 2022 as its CEO warned of “uncertain times” in markets. Net profit attributable to shareholders of US$2.11Bn, below analyst expectations aggregated by the company of US$2.4bn. Return on tangible equity stood at 16.4%, versus 15.4% a year ago.

And finally.,….

Clarence

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