ASX 200 flip flopped around in quieter trade, finishing up 2 points at 6818. Banks bad. Resources good today. 10-year yields pushing back up today to 3.79% and taking its toll on the Big Bank Basket falling to $173.48 (0.5%). CBA fell 0.4%, NAB down 0.8% with MQG firm still up 0.7%. REITS fell as rates pushed back up GMG down 2.5% and SCG off 0.8%. Healthcare suffering from a hangover as CSL fell 0.1% and FPH dropped 2.8%. Industrials were wishy washy with few highlights either way. WOW continued to fall, down 0.8% and EDV joined in down 2.2%. REA reversed yesterday’s gains dropping 2.8%. Tech showing little change too. The All–Tech Index down 0.4%. Resources were once again the place to be. BHP have been enjoying Golden Week with the stock up another 0.6%, FMG and RIO more modest gains. IGO did well up 1.0% and lithium stocks back in demand as oil prices rose, PLS hitting new highs up 5.7%, CXO up 1.3% and coal stocks having a merry old time, WHC up 7.2% and NHC firming 2.3%. Oil and gas majors were ahead as crude rose post OPEC, STO up 1.8% and WDS up 2.6%. Gold miners flat. In corporate news, MFG revealed another serious drip in FUM as instos deserted the ship, falling 8.4%, APX had yet another profit warning tumbling 11.7% and SGR was put on notice in QLD that it could lose its licence. In economic news, the Balance of Trade came in a little below the $10bn anticipated at $8.3bn, NAB has cheered everyone up with predictions of housing falling 20% from the peak accelerating next year. Meanwhile in Asia, China still on Golden Week but HK and Japan trading with the former down slightly and Japan up around 1%.

HEADLINES

• Winners: PNV, SMR, WHC, LLL, TYR, PBH, NEU, BCB, PLS, INR
• Losers: MFG, ZIP, 5EA, MYX, MCR, URW
• Positive sectors: Iron ore. Base metals. Lithium. Energy.
• Negative sectors: Banks. WOW, REITs
• High 6828 Low 6787
• Big Bank Basket: Closed at $173.48 (Down 0.5%)
• All-Tech index: Slightly easier.
• Gold: Higher at $2645
• Bitcoin: Rallies to US$20,361
• Aussie Dollar: Firms to 65.29c
• 10-Year Yield: Rises again to 3.79%
• Asian markets: Japan up 1%. HK down 0.5%
• US Futures: Dow up 137 Nasdaq up 75.

MAJOR MOVERS

• PNV +23.21% sales update.
• WHC +7.17% SMR +8.14% old king coal remains a merry ol’ soul.
• BCB +5.71% TER +4.50% coal exposure.
• PLS +5.68% CFO transition. Fresh record highs.
• PBH +6.37% and they are off. US house racing partnership.
• TYR +6.52% punters hoping for a better bid.
• PAR +19.50% kicks again.
• BLU +6.90% gas player.
• SYA +4.26% LLL +6.96% lithium stocks back in demand.
• LNK +5.14% brokers warm to latest (never say) Dye and Durham.
• MFG -8.43% girls don’t wanna have FUM.
• ZIP -7.38% comes undone.
• 5EA -6.28 % back down again.
• GMG -2.49 % bond yields rise again.
• APX -11.71% heading further down on downgrade.
• MCR -6.11% Paydirt Nickel Conference presentation.
• BVS -7.09% change in substantial holding.
• FLN -3.70% slide continues.
• Speculative Stock of the Day: Nothing on any volume. Not a good sign.

IN THE NEWS

• Polynovo (PNV) – Provides trading update; reports first-quarter sales $12.5m vs year-ago $7.2m.
• Queensland Attorney-General Shannon Fentiman has formed the view that The Star  (SGR) is unsuitable to hold a casino licence in Queensland.
• Talga Group (TLG) – Requests trading halt pending potential capital raising announcement.
• Magellan Financial Group (MFG) – Reports total FUM as at 30 September $50.9bn vs $57.6bn as at 31 August. Net outflows for the month were $3.6bn, which comprised $0.4bn of retail outflows, and $3.2bn of institutional outflows. 
• Appen (APX) – Provides full-year guidance for revenue of $375-395m vs consensus of $398.8m. Adjusted EBITDA of $13-18m vs consensus of $32.4m, expected to be materially lower than FY21. APX says EBITDA guidance is attributed to lower gross profit from lower revenue, and a change in the revenue mix. 
• Lendlease Group (LLC) – COO Denis Hickey to leave the company according to the AFR.
• PointsBet (PBH) – Enters a US horse racing betting partnership with 1/ST TECHNOLOGY.
• Australian Finance Group (AFG) – Reports first-quarter mortgages lodged at 36,156 vs year-ago 40,098. 
• Lotus Resources (LOT) – Reports drilling results from Chilumba prospect. 
• Qantas Airways (QAN) – Wary of delays to Airbus deliveries ahead of its progress meeting. CEO Alan Joyce commented that every airline would be looking for clarification on the time frames. 
• United Malt Group (UMG) – MD and CEO Mark Palmquist to retire from both positions in FY23. 
• Lake Resources (LKE) – WMC Energy to acquire a 10% stake in LKE at $1.20/share. Parties sign an offtake agreement for up to 25Ktpa lithium from a Kachi project. 
• Invictus Energy (IVZ) – new data shows its Cabora Bassa Project in Zimbabwe has an estimated 1.17bn barrels of oil gross from five drill-ready prospects in Basin Margin Area.

ECONOMIC NEWS/ BOND MARKETS

International Trade Data out

• Real world inflation, prices of dumplings and other Chinese goodies fare at well-known Australian restaurant, Taste of Shanghai, have also gone up between 6% and 8% since the start of the year.
• Australian personal finance comparison platform Finder, which has been tracking prices of consumer goods, said increased prices have outstripped wages growth across Australia since the pandemic started. 
• Prices of beef and veal also rose sharply by 33% while staples like milk, cheese and eggs also jumped by nearly 12%, according to Finder’s Consumer Sentiment Tracker. The tracker also shows 56% of Australians are “somewhat stressed” about their current financial situation, and almost 1 in 5 are extremely stressed.

ASIAN MARKETS

• Oil slightly higher in Asian trade.
• Huawei to relaunch 5G phone despite US sanctions.
• North Korea fires a ballistic missile into the Sea of Japan, South Korea says.
• Goldman Sachs sees Hong Kong’s home prices declining 30% from last year’s levels

US AND EUROPEAN HEADLINES

• White House accuses OPEC of siding with Russia.
• Musk still stuffing around with Twitter deal.
• Ukraine faces critical battle in the south before winter, US says.
• OPEC production cut the big story.

And finally….

I thought I saw Michael J Fox at the garden centre the other day. I can’t be sure though as he had his back to the fuchsias.

My next door neighbour has died of an electric shock. I have suggested to his wife she remain positive. It’s what he would have wanted.

You know the best thing about the internet is that you can claim credit for things you had no part in. It’s one of the reasons I invented it.

Clarence

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