ASX 200 rose 10 points to 6987 (0.1%). A cautious day today ahead of Fed meeting outcome. 75bps the forecast, Q&A will be the focal point. A mixed sessions as banks eased, the Big Bank Basket up to $189.19 (0.1%). MQG slipped 1.8% with insurers solid as MPL rose 1.0%. Healthcare slipped a little with CSL down 0.2% after announcing a new deal down. Industrials weaker, WOW down 0.8%, EDV down 1.3% and COL sliding 0.8%. TLSDA also slightly weaker with no real interest. Tech stocks fell, XRO down 3.4%, WTC off 2.5% and the All–Tech Index down 0.8%. Resources were mixed as lithium stocks took a break PLS down 4.0%, MIN off 1.7% and AKE falling 3.9%. Base metals and iron ore better, BHP up 2.1% with FMG up 1.5% and RIO rising 2.4%. Gold miners were slightly firmer as bullion rose slightly. NCM up 1.6% and NST rising 1.2%. Energy stocks doing well on crude rises and coal stocks back in favour. WDS hitting highs up 1.2% and STO up 0.8% with WHC back in the green up 4.2%. In corporate news, AMC fell 4.3% on reaffirming guidance, LKE rose 5.2% on a Kachi update, CSL will work with Arcturus Therapeutics on a new mRNA flu vaccine. DMP had its AGM and again inflationary pressures hurting down 5.3%. On the economic front, building approvals and housing finance showing the extent of the price and activity falls. In Asia, a mixed session, Japan down a little but China up a touch and HK doing well.

HEADLINES

• Winners: CRN, SMR, LLL, TER, VSL, PPT, LKE, RMS
• Losers: CBO, DMP, LFG, CMW, EHE, RWC
• Positive sectors: Iron ore, Gold miners. Energy.
• Negative sectors: Staples. Pizza. Tech. REITs.
• High 7012 Low 6979. Narrow range. Cautious.
• Big Bank Basket: Closed up to $189.19 (0.1%)
• All-Tech index: Falls 0.8%.
• Gold rises to $2572
• Bitcoin: Higher at US$20,514
• Aussie Dollar: Higher at 64.19c
• 10-Year Yield: Steady at 3.78%
• Asian markets: Japan down 0.1% HK up 1.7% and China up 0.8%
• US Futures: Dow up 64 Nasdaq up 42
• European markets opening slightly higher.

MAJOR MOVERS

• CRN +8.81% brokers warm after quarterly report.
• SMR +8.73% TER +6.10% coal stocks bouncing back.
• LKE +5.19% demonstration plant initial results.
• PNV +0.98% kicks higher.
• A11 +34.04% high grade drill results.
• DCN +17.86% GMD +3.14% bid extended again.
• ATC +10.00% quarterly report draws interest.
• AKE -3.92% LTR -3.36% lithium eases.
• AMC -4.30% Q1 results.
• RWC -4.60% change in substantial holding.
• CVW -12.61% conclusion of strategic review.
• GMG -3.06% operational review.
• ASM -8.61% placement raises $30m
• BLX -9.09% someone turned lights out.
• DMP -5.33% AGM presentation
• Speculative Stock of the Day: Winsome Resources (WR1) +57% – Now in trading halt. Investor presentation this morning. Yesterday updated Adina drilling after hours. Good volume.

IN THE NEWS

• Amcor (AMC) – Has reiterated financial year guidance after reporting strong first quarter results, with a net sales increase of 9% to $3,712m and an increase of earnings per share of 10%. The results reflect the recent rise in inflation as Amcor continues to push the rising costs out to consumers.
• Goodman Group (GMG) – Has forecasted FY23 operating earnings per share increase of 11%. The group currently maintains $13.8bn of development work in progress across 85 projects and has had a 99% occupancy rate across the portfolio.
• Rio Tinto (RIO) – Has reconfirmed its final offer of $C43.00 per share for Turquoise Hill for the remaining 49% stake in the company, which values the deal at approximately $C4.24bn. In response, Turquoise Hill has postponed a special shareholder meeting regarding the takeover till the 8^th of November.
• Vulcan Energy (VUL) – Announced that they are expanding the Zero Carbon Lithium business into France with the BNP Paribas as a strategic investor, after reporting high-grade lithium brine samples in the area. Vulcan has strong relations with French automakers, in the region and the licence applied for covers 155km².
• CSL (CSL) – announced that they have entered into a licence agreement with Arcturus Therapeutics for a next-generation mRNA Vaccine technology.
• Lake Resources (LKE) – Pleasing results from LKE as they announce the completion of construction of the demonstration plant and commissioning taking place in September and October, processing brine at spec. The share price jumped 10.38% on the back of the good news.

ECONOMIC NEWS

• Commonwealth Bank will lift its home loan variable interest rates by 0.25% from November 11.
• Federal Resources Minister Madeleine King has signalled she won’t block the export of Australian critical minerals to China after VHM announced plans to sell 60% of its product from Victoria to Shenghe.

Building Approvals

Housing finance

In September 2022 in seasonally adjusted terms, the value of new loan commitments:

• for total housing fell 8.2% to $25.1b, after a fall of 3.4% in August.
• for owner-occupier housing fell 9.3% to $16.8b but remained 23.2% higher than the pre-pandemic level seen in February 2020.
• for investor housing fell 6.0% to $8.3b but remained 59.8% higher than the pre-pandemic level seen in February 2020.

• New Zealand plans to require providers of buy-now, pay-later products to conduct an affordability check on customers before agreeing to a loan.

ASIAN MARKETS

• North Korea fired at least 10 ballistic missiles Wednesday including one that was the first to fly over a nautical border with South Korea, in its biggest daily barrage under leader Kim Jong Un.

• China’s Banking and Insurance Regulatory Commission said that the country’s property sector is an area of concern, although ‘risks are manageable’.

US AND EUROPEAN HEADLINES

• It’s all about the Fed. 75bps is the estimate.
• Musk outlines Twitter premium subscription plan for US$8 a month.
• American firms are expected to reshore almost 350,000 jobs in 2022, an increase of 25% from 260,000 in 2021.
• Johnson & Johnson bucks global M&A slowdown with $16.6bn Abiomed deal.
• Russia warned that the security of ships sailing Ukraine’s grain-export corridor cannot be guaranteed without additional conditions.
• Taylor Swift has taken the top 10 spots of the Billboard Hot 100 with songs from her album “Midnights.” She has announced her first major tour in five years.
• A Federal Communications Commissioner, Republican Commissioner Brendan Carr said the U.S. government should ban TikTok. He is only one of four. TikTok has maintained that it stores U.S. user data outside of China so that it would not have to turn over that information to the government, but U.S. officials have maintained their scepticism.

And finally….

Clarence

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