ASX bounced hard up 116 points to 6759 (+1.8%) for a 4-point loss for the week. The hard way. Solid bounce but lacking volumes and still some caution. Banks carried through with the recent strength with the Big Bank Basket up to $178.84 (+1.0%). CBA up 0.8%, NAB up 1.6% and MQG rallying 2.4%. Insurers too in demand together with Fund Managers, MFG up 2.5% and QBE up 5.1%. ASX up 3.1% with CGF also doing well up 4.1%. MPL suspended still on hacking concerns. In the healthcare sector, CSL up 1.4% with all stocks finding friends, SHL up 1.0% and COH rising 5.1%. Industrials also bounced hard as expected. EDV up 2.4%, WOW up 2.6% and COL up 2.5%. QAN continued to push higher on broker upgrades, up 3.2%. WES up 1.7% and tech stocks doing OK too. The All–Tech Index rose 1.8% with CPU the stand out, up 2.6%. REITs firmed as yields came off slightly. Resources also in demand although lithium stocks were a little depressed. PLS continuing to find profit takers, down 5.1% and gold miners hardly stirred as AUD bullion fell. BHP up 2.0% and RIO doing well, MIN up 2.7% and AKE up 4.6%. Gold miners missed out as AUD bullion prices fell, NCM down 1.2%. Oil and gas stocks better led by WDS up 4.0% and STO up 4.4% as oil steadied in Asian trade. In corporate news today, not much out as a Friday with eyes shifting back to US for bank results. Economic data thin on the ground too. Asia markets bucked up with HK up 3.4%, China up 2% as CPI came in better than expected and the PBoC looks to further support of the economy. Japan up 3.5% too. 10-year yields back above 4%. Dow Futures up 173 points.
- Winners: VUK, DMP, LTR, JIN, JHG, BPT, NAN, SUN
- Losers: PLS, INR, TIE, MYX, SBM, NBI, RMS
- Positive sectors: Everything.
- Negative sectors: Selected lithium stocks, PLS. Gold miners.
- High 6773 Low 6668 – Low volume day.
- Big Bank Basket: Closed at $178.84 (Up 1.0%)
- Oil steady in Asian trade.
- All-Tech index: Up 1.9%.
- Gold: Falls back to $2634
- Bitcoin: Bounces hard to US$19822
- Aussie Dollar: Rallies back 63.38c
- 10-Year Yield: Steady at 4.01%
- Asian markets: HK up 3.4%, China up 2% as CPI came in better than expected. Japan up 3.5%
- US Futures: Dow up 178 Nasdaq up 67.
- European markets set to open higher across the board.
- VUK +9.52% banks boosted by UK U turns.
- DMP +7.60% US counterpart does well.
- JHG +6.09% hopes for housing bounce back.
- LTR +7.57% selected lithium winners today. T/O potential.
- QAN +3.20% Barrenjoey upgrades. MS says overweight.
- CTT +26.19% luxury is back.
- FDV +7.46% stirring on tech rally.
- INR -4.55% slippage.
- PLS -5.06% coming off the boil.
- CXL -1.58% no news is bad news.
- IVZ -13.51% smashed then paused.
- DCN -7.41% profit taking. GMD +1.9%
- Speculative Stock of the Day: Recharge Metals (REC) +12.90% significant zones of sulphide intercepted at Brandy Hill South.
IN THE NEWS
- Autosports Group (ASG) – To acquire Fortitude Valley Land and Buildings from Dexus for the sum of $98m. This will be 80% funded through existing financiers and the remaining through cash reserves.
- Telix Pharmaceuticals (TLX) – Has received approval from Health Canada for their imaging agent that assists with the screening of prostate cancer. This is the third regulatory body in the world to approve the imaging agent.
- Hastings Technology (HAS) – Has acquired a 19.9% stake in Neo Performance Materials at CA$15 per share.
- Medibank Private (MPL) – Informs there was evidence that sensitive data was leaked during the data breach earlier this week.
- Insurance Australia Group (IAG) – “The trading halt is requested to enable IAG to consider the impact of today’s determination by the High Court of Australia to dismiss the applications by IAG and the policyholders for special leave to appeal the judgement of the Full Federal Court of Australia in the second business interruption test case handed down on 21 February 2022, including to assess the financial impact,” the company said. Halt lifted October 18th or earlier.
ECONOMIC NEWS/ BOND MARKETS
- New Treasurer Jim Chalmers is in Washington with the IMF annual gab fest. “We expect wages growth to pick up,” he said. Currently wage growth in Australia is now tracking at 2.6%, with private sector wage growth at 2.7%– the highest since September 2013.
- Chinese CPI grew 2.8% y/y in Sept, highest since Apr 2020, vs expected 2.9%, previous 2.5%. PPI grew 0.9% y/y in Sept, vs expected 1.1%, previous 2.3%. Core inflation, which excludes volatile food and energy costs, slowed to 0.6% from 0.8% in August, the weakest pace since March 2021.
- Singapore’s economy expanded 4.4% over the September quarter on a year-on-year basis, ahead of analysts’ consensus forecasts. On a quarter-on-quarter basis, gross domestic product expanded 1.5%.
- Asian governments have spent around US$50bn last month to defend their reserves from the rampant USD.
- The Sony – Honda JV focused on electric vehicles plans to begin deliveries to the United States and Japan in 2026.
US AND EUROPEAN HEADLINES
- UK Chancellor races back to London to prepare another U-Turn.
- BoE emergency bond buying ends today. In theory.
- January 6 committee votes to subpoena Donald Trump.
- Netflix to launch ad-supported streaming option in November.
Rabbi, tell me, you know everything, I found such a difficult word in the newspaper: alternative. What is this?
The Rabbi is stroking his chin and says:
“Imagine, Chaim, that you have two eggs, and these eggs produce a cockerel and a hen.
After some time, the hen lays two more eggs, from which the cockerel and the hen again hatch.
And so after a year, you already have a whole yard of hens and cockerels.
And then a great flood comes and floods your entire farm.
– Okay, Rebbe, but where’s the alternative?