ASX 200 closes up 103 points to 6779 (+1.5%). Big jump straight out of the blocks but off highs as Chinese GDP and politics sends HK down 5% and US futures give up Sunday night gains. Volume remains on the modest side, Banks shining ahead of the results later this week and to come, the Big Bank Basket now at $181.57 (+0.9%). CBA doing well up 1.2% and MQG finding some support up 2.4%. Insurers gained with IAG up 2.1% and QBE rallying 0.5%. Industrials were firm but somewhat underwhelming. TLS rose 0.5%, WOW up 1.2% and WES up 2.1%. Healthcare better, CSL up 2.1%, RMD up 1.9% and FPH up 2.4%. Tech stocks rose 2.7% with XRO up 3.5% and NXT up 3.1%. Resources were the driving force today with BHP up 2.6% being nearly 15 points of index gains. RIO up 1.2%, FMG rallying 2.5% and even gold miners gaining ground as the USD falls. NCM up 2.9% and NST up 5.0%. EVN a stand out up 7.7%. Lithium and battery tech stocks once again in favour, PLS up 6.1% on another sales result and AKE rising 1.8%. CXO rose 1.8% and LPM up 7.3%. Oil and gas were mixed, STO down 0.1% and WDS up 0.4% with coal stocks in demand, WHC up 3.4%. NHC ex-dividend today. In corporate news, S32 fell 1.9% on a disappointing quarterly and OZL dropped 1.2% on a similar underwhelming report and BHP was steadfast in only paying 2500c for the company. VUL rose 13.4% on good pilot plant news in Germany and NMT rose 10.5% on environmental permitting. On the economic front, RBA assistant Clarke talked rates and demand, and the private sector contracted for the first time in nine months in October. Asian markets stumbled lower on GDP numbers from China finally dropping and around 3.9%. 10-year yields 4.15%. Dow Futures up 19 points. 

HEADLINES

• Winners: NVX, VUL, NMT, 360, SYR, EVN, BGL
• Losers: ASB, STX, SGF, MAQ, PBH, EHE
• Positive sectors: Lithium. Gold. Tech. Iron ore. Banks. Battery materials.
• Negative sectors: Nothing.
• High 6823 Low 6717
• Big Bank Basket: Closed up to $181.57 (0.9%)
• All-Tech index: Up 2.7%.
• Gold: Higher at $2613
• Bitcoin: Rallies to US$19353
• Aussie Dollar: Off highs but still 63.43c
• 10-Year Yield: Lower at 4.15%
• Asian markets: Japan up 0.6%, HK down 5.0% and China down 1.7%
• US Futures: Dow up 21 Nasdaq up 20.
• European markets opening slightly higher.

MAJOR MOVERS

• NVX +33.48% kicking in from last week.
• VUL +13.41% good results from pilot plant.
• SYR +10.45% graphite is back.
• ABB +5.38% broker upgrade.
• PLS +6.11% additional sales post auction.
• GOR +6.43% EVN +7.73% gold bounce.
• TIG +21.43% quarterly production.
• GLN +17.32% doubles resource.
• CTT +22.05% luxury is back with a vengeance.
• DRE +10.00% broad, high-grade assays at Yin REE discovery.
• HFR +6.67% project financing- credit approval.
• S32 -1.88% quarterly report.
• AQC -7.94% NSW government media clarification.
• CRR -9.46% exceptional intercepts with 18.45m @2.06% Li2O at Mavis Lake.
• Speculative Stock of the Day: Nothing on any volumes. Very quiet in spec land.

IN THE NEWS

• Tigers Realm Coal (TIG) – Has upgraded their FY23 production numbers in today’s Quarterly operation activities statement. The company has increased their full-year production numbers to 1300-1400kt. The first nine months of this FY have seen an increase in production by 57% vs the previous corresponding quarter.
• South32 (S32) – Downgraded met coal production guidance by 5% but guided to a 13% increase in copper equivalent production in FY23.
• Oz Minerals (OZL) – Copper produced 30,012tonnes compared to the previous year’s 33,794 tonnes. OZL has downgraded full-year production guidance after the supply chain issues and underground conveyor breakdowns.
• Newcrest Mining (NCM) – All mining and processing operations have been suspended at the Brucejack mine have been suspended following an incident with a critical incident involving a team member from the contractor Procon.
• Viva Energy Australia (VEA) – Today released in Q3 Operational Update, Quarterly sales reached the highest level since pre covid rising 19.7%. Geelong facility refining margin increase 136.4% to 5.5 US$/BBL.
• Regional Express Airways (REX) – Today released an announcement that their domestic jet operations have swung into profitability for the month of September, for the first time since February 2022. “Revenue growth has been even stronger” and are looking to expand and acquire the services of another two Boeing 737s, while reaffirming FY23 Guidance.
• PlaySide Studios (PLY) – Confirmed in today’s first quarter activities report that quarterly revenue has increased 60% from the previous quarter. Net outflows totalled $0.8m, with Net Cash of $34.7m.
• Vulcan Energy Resources (VUL) – Announced that the chemical engineering team has produced the highest-grade lithium hydroxide to date. The material was graded at 57.1%, which they claim exceeds the best on the market at 56.5%.
• Westpac (WBC) – Today announced after hours, that its reported net profit and cash earnings in 2H22 will be reduced by $1.3bn (after tax) due to notable items. The majority of these notable items have been previously disclosed with announced divestments. The notable items after tax for 2H22 include a loss of $1.1bnon the sale of Westpac Life Insurance Limited and an increase in provisions for customer refunds, associated costs and litigation costs.

ECONOMIC NEWS/ BOND MARKETS

• RBA assistant governor Chris Kent has issued a reminder that the central bank wants rising interest rates to cut people’s disposable incomes and reduce discretionary spending.
• The private sector contracted for the first time in nine months in October, S&P’s Global Flash Australia Composite PMI fell to 49.6 from 50.9 in September, its first contraction since January.

ASIAN MARKETS

• HK markets down 5%.
• Chinese GDP grew 3.9% in the July-to-September period from a year ago, rebounding from almost stagnant growth in the second quarter when Shanghai was still in lockdown. The figure was stronger than the median estimate of 3.3% in a Bloomberg survey of economists.

• Chinese unemployment rose to 5.5% in September from 5.3% in August. Retail sales growth slowed to 2.5%, compared to August’s 5.4% increase and far lower than the 3% forecast.
• Industrial production rose 6.3% in September from a year earlier, more than August’s 4.2% rise and beating the 4.8% forecast from economists.

• Home prices fell for a thirteenth consecutive month in September. Property investment declined 8% in the first nine months of 2022 from the same time period a year ago.
• Diwali celebrations continue in India and elsewhere. India’s gold demand could be as high as 750 tonnes in 2022. 75% of Indian households own some form of gold.

US AND EUROPEAN HEADLINES

• Rishi Sunak looks set to become the next UK’s PM. Johnson pulls out. Only Penny Mordaunt now stands in the way of Sunak. Could be decided today. 3 leaders in two months.

• US big Tech earnings forecast to slow in Q3 as ad sales fall further.
• Anniversary of Black Thursday 24th October 1929 when the US market fell 11%. Considered the first day of the great crash.

On this day in 1929

Clance

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