The ASX 200 rebounded 27 points to 6487 (+0.4%) in quiet trade. Resources were the standouts today after the rout yesterday, as BHP gained 2.8%, RIO up 3.0% and FMG better by 5.5%. Lower AUD doing its job with exporters to benefit. Gold miners pushed a little higher too, but lithium and coal stocks rebounded strongly, PLS up 6.1%, AKE up 3.6%, WHC rallying 6.8% with other coal stocks in demand. TER up 8.5%, and BCB doing well, up 7.6%. Energy stocks also doing well, STO up 1.0% and WDS bouncing 1.6%. Elsewhere banks slid slightly as 10-year bonds cruised through 4%. The Big Bank Basket fell to $166.89 (0.2%). CBA down 0.2% and MQG falling 0.9%. Insurers were steady as yields rose. Healthcare reversed yesterday’s gains, CSL falling 0.1%, RHC down 3.5% and FPH down 4.8%. REITs down and defensives giving back a little TLS down 1.1% and REA off 2.5%. Tech stocks modestly lower. The All–Tech Index was unchanged. In corporate news, POS down 8.3% on an update, and CXO dropped 5.6% on a Finniss lithium project update on production later this year. SM1 fell 4.4% after underwhelming on results, and TLG rallied 19.4% on an offtake agreement. Nothing on the economic front. European markets heading for a stronger open. Asian markets mixed. 10-year yields up to 4.04%.

Headlines

  • Winners: TER, BCB, BRN, AGY, TUA, WHC, MP1.
  • Losers: CXL, CXO, DYL, FPH, TPW, GNE, SM1.
  • Positive sectors: Iron ore. Lithium. Coal. Energy. Gold.
  • Negative sectors: Banks. Defensives. REITs.  
  • High 6509  Low 6473
  • Big Bank Basket: Closed at $166.89 (-0.2%).
  • All-Tech index: Unchanged.
  • Gold: Weaker at $2515.
  • Bitcoin: Better at US$20122.
  • Aussie Dollar: Steady at 64.99c.
  • 10-Year Yield:  Pushes higher to 4.04%
  • Asian markets: Japan up 0.5%, with HK down 0.6% and China up 0.8%.
  • US Futures: Dow up 210 Nasdaq up 88.
  • European Futures: showing a positive start to the day, up 1.0%. BoE monitoring situation. GBP rallies against USD.

Major Movers

  • AGY +7.07% PLS +6.12% lithium stocks back in demand.
  • WHC +6.83% TER +8.51% coal stocks find buyers.
  • AJL +19.23% franking in the UK after fall yesterday.
  • RAS +26.56% NT Lithium project update.
  • TLG +19.41% ACC signs non-binding offtake agreement.
  • TNT +5.00% Optus data breach boost.
  • TBN -4.76% cleansing notice.
  • POS -8.33% operations and corporate update.
  • SM1 -4.42% full-year results. No guidance.
  • CXO -5.56% Finniss production update.
  • Speculative Stock of the Day: Dundas (DUN) kicks again up 42.35% after big run yesterday and SSOTD Monday. DUNO up 100%.

In the News

  • Poseidon Nickel (POS) – Issues Black Swan feasibility study update.
  • Talga Group (TLG) – Signs non-binding offtake term sheet with ACC to supply 60Kt of Talnode-C over 5 years.
  • Regal Partners (RPL) – Completes retail component of 1-for-5 entitlement offer raising $8.4m.
  • Sayona Mining (SYA) – Awards 4-year C$200m mining operations contract to L Fournier & Fils.
  • Core Lithium (CXO) – Provides Finniss operations update and BP33 diamond drilling results. First spodumene ore uncovered at Finniss in September, and first lithium ‘Direct Ship Ore’ shipment preparations are underway to be carried out by the end of 2022, with the shipment to be sold via a tender process due to the high level of interest.
  • Santos (STO) – Confirms Kumul offers to acquire 5% of PNG LNG for $1.4bn.
  • Synlait Milk (SM1) has more than tripled its financial 2022 net profit after tax to $NZ38.5m, on sales up 21% to $NZ1.66bn. It expects a similar level of profitability in financial 2023 as in financial 2021, without providing specific financial guidance.
  • AACo (AAC) – new boss, well the interim boss has been appointed permanent boss. David Harris gets the gig. Harris joined AACo in 2016 and was appointed chief operating officer in 2020.

Economic News/Bond Markets

  • Morgan Stanley strategists have forecast sterling to reach parity with the US dollar by the end of 2022. Maybe by the end of October the way things are going.
  • Cryptocurrency bitcoin has surged 7% to top $US20,000 at $20,195.

Asian Markets

  • Chinese Industrial profits fell 2.1% in the January-to-August period compared to a year earlier, data from the National Bureau of Statistics. Production, operation costs remain high.
  • Private firms, meanwhile, saw their profits sink 8.3% year-to-date, while those of state-owned enterprises were up 5.4%.
  • China announced an extension of tax breaks for electric car purchases, sending shares of Nio and Xpeng higher.
  • Global funds sold more than US$43bnTaiwan shares in 2022. Taiwan raised the prospect of foreign-exchange controls and a ban on stock short sales if capital outflows worsen significantly.

US and European Headlines

  • Biden’s student loan forgiveness plan estimated to cost US$400bn.
  • Putin has granted Edward Snowden citizenship.
  • NASA has smashed a satellite into an asteroid and landed Bruce Willis and Ben Affleck on the surface. Now waiting for the drilling to start.
  • If you have any British paper 20 quid and 50 quid notes, they are no longer accepted after 30th September.
  • BoE is monitoring and will have a late November update. No panic from Bailey. GBP rallying.
  • World Bank cut its GDP for China to 2.8% down from 4.3%

And finally…..

Clarence

XXXX

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