ASX 200 closed up 91 points at 7115 (1.3%) reversing the 110-point BoJ inspired loss of yesterday. Gains across the board although the banks were slightly muted but then they didn’t fall yesterday. CBA slid 0.6% and the Big Bank Basket square again. Insurers rose on higher bond yields. REITs too rose bouncing back on the same bond yields. QBE up 1.5% and SUN up 2.1% with GMG bouncing 2.3% and MGR up 2.4%. Healthcare bounced somewhat anaemically, CSL mustering a 0.5% rise. Industrials slightly higher but no great oomph! TCL up 0.4%, REA bounced 2.0% and DHG under pressure again down 1.2%. The action was in the resources as BHP rose 2.4%, RIO up 1.7% and FMG rallying 3.0%. Lithium stocks were mixed despite 30% higher prices from PLS but cost overruns for expansion hampered sentiment. Gold miners were the stand outs as bullion ran again, NST up 4.0%, SBM up 8.0% and NCM up 6.5%. Screaming ahead, maybe more USD weakness ahead. Energy stocks also back in favour, WDS up 2.7%, KAR up 4.2% and STO doing well. Coal stocks were a merry old soul, WHC up 4.5%. Tech better but not shooting the lights out. In corporate news, ORG up 6.6% as DD on track. TLS and TPG got knocked back on the network sharing agreement. On the economic front, ANZ Roy Morgan consumer sentiment still weighing and daily home value index shows some mixed results. In Asian markets, HK flat, China up 0.1% with Japan down 0.6%. 10-year yields up to 3.74%. No one seems to care today though.

HEADLINES

• Winners: RED, EVN, SBM, SLR, BGL, JRV, CMM
• Losers: NVX, 360, PPM, STA, THL, KMD, INR
• Positive sectors: Iron ore. Gold Miners. REITs. Tech. Oil and gas.
• Negative sectors: Telcos.
• High 7139 Low 7044. Big range in theory.
• Big Bank Basket: Closed at $182.65 unchanged
• All-Tech index: Up 1.1%
• Gold steady at $2691
• Bitcoin: Steady at US$16,713
• Aussie Dollar: Lower to 66.54c
• 10-Year Yield: Firms to 3.74%
• Asian markets: HK flat, China up 0.1% with Japan down 0.6%.
• US Futures: Dow up 200 Nasdaq up 76

MAJOR MOVERS

• RED +12.82% kicks on from recent drilling.
• SLR +7.79% BGL +7.48% EVN +8.10% gold miners in demand.
• ORG +6.64% DD extended.
• BOC +27.78% copper boom coming (again).
• EUR +12.50% gets new Beemer.
• AZL +12.90% lithium project acquisition.
• SYM -37.70% profit downgrade.
• NVX -7.35% progress but no fans.
• INR -2.50% no fans here either.
• KMD -3.43% retail headwinds.
• TYR -0.37% interest waning.
• BWX -28.81% crash continues.
• Speculative Stock of the Day: Not much volume out there but Droneshield (DRO) +20% today on news of a $11m order from a government agency customer. Think we can assume its US.

IN THE NEWS

• Novonix (NVX) has opened lower this morning after what appeared to be good news that NVX is on track to deliver 3,000 tonnes per annum of high-performance graphite to Kore Power in 2024. Kore power has also secured $75m in financing for their gigafactory.
• Worley (WOR) has announced they have been awarded a five-year contract for engineering services and project management consultancy to Kuwait Oil company. WOR has been in business with the company for 20 years and this agreement extends their relationship further.
• Telstra (TLS) – The ACCC has announced they will not grant authority for the TPG Telecom (TPG) and TLS regional network deal to go ahead, commenting that it is likely to lead to reduced competition in the long term. Both TLS and TPG have said they will contest the ACCC’s decision.
• Pilbara Minerals (PLS) has issued a market update stating that have secured increased pricing for lithium to an average of $US6300 a dry metric tonne. They have also issued an update on the P680 expansion project with the project still on track and total capital cost has been revised up to $404m
• Transurban Group (TCL) has announced they have received Stage 3 approval to connect the M7 Motorway and M12 Motorway in Western Sydney. The plan also includes widening the M7 and work is expected to commence in 2023 with an estimated time to completion of 3 years.
• Jumbo Interactive (JIN) has today announced that their Canadian subsidiary “Stride” has been granted a gaming services provider license in British Columbia

ECONOMIC NEWS

• Tourism jobs grew 3.2% in the September quarter to 604,200 as the sector continues its recovery from the pandemic.
• It represents about 4% of the economy-wide jobs in Australia.
• Cafe, restaurant and takeaway food services jobs increased the most in the quarter, adding 8400 jobs.
• ANZ-Roy Morgan Consumer Confidence holds steady at 82.5, easing 0.4pts leading up to Christmas and finishing the year below the neutral level of 100. The persistent weakness in sentiment appears to be weighing on household spending. The data indicates spending lost momentum early in the holiday season, which may indicate the beginning of a cyclical slowdown.

• New Zealand’s trade deficit widens from NZD 1.08bn in October to NZD 1.86bn in November as energy prices continue to inflate import values.Imports rose sharply by 26% to NZD 8.5bn, and exports rose by 15% to NZD 6.7bn.

• Corelogic’s daily home value index shows some mixed results. Sydney and Melbourne have taken the biggest hit, down 11.75% and 7.8% year on year, respectively. Three cities up Adelaide, Perth, and Brisbane, 11.3%, 3.9%, and 0.5%.

ASIAN MARKETS

• The IMF said the Bank of Japan’s surprise decision to double the cap on benchmark bond yields is a sensible step.
• China has changed the definitions of a Covid death. Still dead though. Tragically can’t change that.
• A Standard Chartered survey in China has found business conditions at small and medium enterprises was in contractionary territory for a third straight month in December. So much for reopening bounce.

• The Chinese manufacturing sector saw some improvement, with a rise in new orders, sales and production from November.
• The cost for an expatriate to join the 36-hole Sentosa Golf Club overlooking the Singapore Strait has more than doubled since the end of 2019 to US$618,000). Prime real estate has never been more expensive and luxury car sales are higher than ever.

US AND EUROPEAN HEADLINES

• US Futures rise on FedEx and Nike earnings updates.
• A House committee voted to release Donald Trump’s tax information to the public, capping a three-year legal saga.
• Musk vows to step aside as Twitter CEO once successor is found.
• Zelensky is expected to arrive in Washington DC today.
• Dan Yergin says oil prices could hit $121 a barrel when China fully reopens. Bill Goss said he expects big trouble ahead should the Federal Reserve keep hiking interest rates. “We’ve got potential chaos in financial markets,” he said.

Clarence

XXX

Happy Gravy Day