ASX 200 dropped 62 points to 7229 (0.85%) in lacklustre trade, cratering on the match out as GDP came in below forecasts. Once again resources were the stars at least until the close, base metal stocks in favour. BHP up 0.1%, FMG up 2.3% and even PLS joined in the positivity up 2.2%. Gold miners were slightly firmer, NCM up 1.1% and NST up 0.2% but BGL dropped 12% on news of a $60m placement. Oil and gas stocks fell back, WDS down 2.0%, STO off 1.1% and BPT taking a tumble on broker moves down 9.9%. Second line lithium a little depressed. Banks eased back following their US counterparts. CBA dropped 0.8%, NAB down 1.2% and the Big Bank Basket at $183.80 (-1.0%). Insurers doing well, QBE up 1.9%, SUN up 1.5% and IAG in the box seat up 1.9%. MQG slid 1.8% with GQG better by 1.4% on its FUM numbers. Industrials eased back too, TLS down 0.5%, WES off 1.5% and TCL down 1.9% on higher rates. Tech stocks under pressure after Nasdaq falls, the All–Tech Index down 3.2% with WTC off 5.3% and XRO heading another 4.2% lower. Healthcare eased, SHL off 2.3%. In corporate news, STO extended its buy back down 1.1%, BTH launched a placement whilst under takeover. STX has bought a 19.9% stake in WGO blocking Gina and Kerry. Squadron Energy (Twiggy’s private company) paid $4bn for CWP renewables. In economic news, GDP for the September quarter came in at 0.6% below consensus. 10-year yields down to 3.35%. Asian markets, Japan up 0.1%, China down 0.1% post economic data and HK added 0.8%. Dow futures are up 51 points and NASDAQ futures are up 22 points.

HEADLINES

• Winners: CTT, STX, GRR, WBT, YAL, OBL, 29M
• Losers: BGL, BPT, RED, PDN, KAR, BRN, MP1
• Positive sectors: Insurers. Base metals.
• Negative sectors: Everything else.
• High 7290 Low 7221
• Big Bank Basket: Closed down at $183.80(1%)
• All-Tech index: Down 3.2%
• Gold better at $2646
• Bitcoin: Steady at US$17,025
• Aussie Dollar: Eases to 66.98c
• 10-Year Yield: Slips to 3.35%
• Asian markets: Japan up 0.1%, China down 0.1% post economic data and HK added 0.8%.
• US Futures: Dow up 52 Nasdaq up 25.
• European markets opening slightly better.

MAJOR MOVERS

• CTT +8.53% luxury back in vogue.
• STX +7.35% nabs 19.9% of WGO.
• WBT +4.83% rally continues.
• 29M +3.33% copper play.
• CIA +2.75% GRR +5.14% iron ore stocks continue higher.
• QBE +1.92% bond yields rising.
• MAY +10.64% organisational changes.
• ORR +6.38% kicks another day.
• DUB -8.08% tech slipping again.
• ABY -6.07% no lipstick on this dog.
• BGL -11.98% $60m placement at 105c.
• BPT -9.89% oil price falls and broker downgrades.
• KAR -6.90% crude drops.
• DMP -5.84% SPP details.
• TNE -6.08% big tech drop.
• Speculative Stock of the Day: Patriot Battery Metals (PMT) +112.50% begins trade on ASX. Ken Brinsden’s (PLS) new company.  PMT is a mineral exploration company focused on the acquisition and development of mineral properties containing battery, base, and precious metals. The Company’s flagship asset is the 100% owned Corvette Property, located proximal to the Trans-Taiga Road and powerline infrastructural corridor in the James Bay Region of Québec. Top twenty is very diverse. The company raised $4.2m at 60c. Compliance listing it seems.

IN THE NEWS

• Tietto Minerals (TIE) – Reports positive drilling, containing a couple of > 50-gram metre hits – 2.7m @ 37.9g/t Au from 62m (including 0.55m @184.6g/t Au) and 3m @ 18.0g/t Au from 120m – at Abujar’s South Gamina (SG) deposit, which is 2.6km from AG Core. The result will be used to increase both size and confidence of the SG resource, to be included in the next resource update in early CY23. Meanwhile, the first gold pour is expected in three weeks.
• Bellevue Gold (BGL) -Bellevue Gold completes previously announced institutional placement for $60m at $1.05 per share (new shares). The placement shares are expected to settle on Monday, 12 December.
• SkyCity Entertainment (SKC) – AUSTRAC has launched civil penalty proceedings in the Federal Court under the Anti-Money Laundering and Counter-Terrorism Financing Act.
• GQG Partners (GQG) – Has reported FUM of $90.7bn vs the previous month of $83.8bn
• Sandfire Resources (SFR) – The AFR has reported that SFR has put DeGrussa mine up for sale, with the mine formerly being the company’s biggest earner.
• Strike Energy (STX) – Has acquired a 19.9% stake in the Warrego (WGO) to become the largest shareholder.
• Santos (STO) – Announced an additional $350m share buyback bringing the total buybacks for this year to $700m. Also announced was a simplified capital management structure that claims to target higher returns for shareholders, including a minimum annual return of 40% of free cash flow.
• Squadron Energy (not listed) will become Australia’s largest renewable energy generator after agreeing to purchase CWP Renewables for more than $4bn. Squadron Energy is the energy division of Tattarang, Andrew Forrest’s private investment company. Squadron will take control of wind farms with about 1.1GW of generation capacity in operation or late-stage construction, and a huge portfolio of potential developments.

ECONOMIC NEWS

• The ABS has reported that the economy grew by 0.6% in the September quarter. This lifts annual real GDP growth to 5.9% from 3.6%. The figures missed a consensus by Reuters who predicted a 0.7% increase.

• Morgan Stanley has announced they are expecting two more 25 basis point rises from the RBA in the first quarter of 2023. The belief, this will bring the RBA terminal cash rate to 3.6%

ASIAN MARKETS

• China’s imports and exports shrank in November as global demand weakened and anti-virus controls weighed on the second-largest economy. Exports sank 9% from a year earlier to $US296.1bn($435bn), worsening from October’s 0.9% decline, customs data showed Wednesday. Imports fell 10.9% to $US226.2bn, down from the previous month’s 0.7% retreat.
• The country’s global trade surplus narrowed by 2.5% from a year earlier to $US69.9bn.
• Macau casino shares jumped, leading the advance in stocks tied to China’s reopening after the local authorities went the same way as the Chinese mainland.
• Hong Kong’s home price index for October fell 2.4% to 352.4 compared to the previous month, marking the lowest level for the gauge since November 2017.

US AND EUROPEAN HEADLINES

• US Democratic Senator Raphael Warnock won re-election in a hard-fought Georgia runoff on Tuesday expanding the Democrats thin majority as he turned back a challenge by Republican former football star Herschel Walker.
• TSMC invests US$40bn in chip factory in US.
• President Xi touches down in Saudi Arabia.
• A U.S. federal judge on Tuesday dismissed a lawsuit against Saudi Crown Prince Mohammed bin Salman in the killing of U.S.-based journalist Jamal Khashoggi.
• Trump Organization convicted of tax fraud in Manhattan trial.
• BlackRock chief Fink pressured by an activist shareholder, to resign over ESG ‘hypocrisy’

And finally….

I said to the Gym instructor “Can you teach me to do the splits?” He said, “How flexible are you?” I said, “I can’t make Tuesdays.”

I was in Tesco’s and I saw this man and woman wrapped in a barcode. I said, “Are you two an item?”

Clarence

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