ASX 200 closes down 20 points to 7131 (0.3%), its first loss in four trading sessions. Resources slid lower as Chinese authorities look to have been spooked by the big iron ore rise recently and looking to talk prices down. BHP fell 0.4%, FMG up 0.7% after a loss yesterday, lithium stocks on the nose, PLS dropped 1.5%, IGO off 1.8% and MIN down 1.3%. Rare earths also in the doghouse with ARU down 9.1% and LYC off 3.8%. Second-line lithium stocks whacked, CXO down 5.0% and LTR down 1.4%. Gold stocks fell despite a bullion rise, NCM down 2.3%, NST down 1.9% and DEG off 7.9%. Energy stocks eased as oil came off a little. Coal stocks lower too. The banks held firm but no great moves, the Big Bank Basket was mostly unchanged at $180.38. MQG down 0.3% on some EU FX issues with a $71m problem. Insurers down, QBE down 2.7% and MFG falling 1.1%. Industrials drifted lower, REITs mixed, tech dull and unexciting. CPU steadied down 0.2%. In corporate news, LKE updated the market on its Kachi project, up 1.2%, RCE jumped 4.6% after being granted an intent offer from the patent office. In economic news, Xmas consumer confidence cheer came with a 4.9-point rise last week. In Asian markets, Japan rose 0.8%, China unchanged and HK down 0.3%. 10-year yields steady at 3.72%. Dow futures down 70 points. 

HEADLINES

• Winners: SLX, BLY, PNV, LFS, PTM, SYR
• Losers: ARU, DEG, TLX, BRN, PBH, SBM, PMV, CXO, BCB
• Positive sectors: Gaming. Healthcare.
• Negative sectors: Lithium. Base metals. Insurers. Gold miners.
• High 7152 Low 7125 Narrow range.
• Big Bank Basket: Closed at $180.38
• All-Tech index: Unchanged.
• Gold better at $2712
• Bitcoin: Steady at US$17191
• Aussie Dollar: Eases to 69.01c
• 10-Year Yield: Unchanged at 3.72%
• Asian markets: Japan rose 0.8%, China unchanged and HK down 0.3%.
• US Futures: Dow down 70 Nasdaq down 35

MAJOR MOVERS

• PNV +8.7% finding strength.
• LKE +1.21% key milestones at Kachi
• SYR +3.96% positive research notes abound.
• 29M +3.38% recovery continues.
• JAN +7.02% somebody read my article.
• TRJ +14.44% no news. Yet.
• DRO -12.07% coming back to earth.
• CNB -8.13% Macquarie research report.
• BRN -7.48% Capital Capp notice under LDA Capital agreement.
• ARU -9.09% profit taking.
• DEG -7.94% gold sell off.
• TLX -7.71% webinar presentation.
• CXL -4.06% unwinds yesterday’s move.
• CXO -5.00% lithium still on the nose.
• PBH -5.71% heading to oblivion.
• IPO of the Week: VHM -13.16% continues to sink into the sunset having raised $30m at 135c.
• Speculative Stock of the Day: Not a lot of choice today. Cyprium Metals (CYM) +21.74% the only one on any decent volume. No announcements except the pre-Xmas US$35m secured offtake pre-payment facility for the Nifty Copper project restart.

IN THE NEWS

• Macquarie Group (MGQ) – Faces $71m of losses after currency derivatives trades with Italian builder Cimolai went awry.
• Fortescue Metals Group Ltd (FMG) – CFO Ian Wells is to depart the company in three weeks. Mr Wells is the ninth senior executive to leave Fortescue in a two-year period marking extraordinary staff turnover at the executive level.
• BrainChip Holdings (BRN) has announced a new Capital Call Notice under a continuing agreement with LDA Capital. BRN intends to sell 30m shares as they are obligated to raise a minimum of $15m during 2023.
• Emerald Resources (EMR) has announced record quarterly production of gold at 29,640 ounces. Cash and bullion holdings increased to $73.6m EMR is a first mover in an emerging gold province in Cambodia, the stock price has risen over 53% over the last two years.
• West African Resources (WAF) – Has reported intercepting further zones of gold mineralization, with the strike of the southern high-grade gold shoot now extending over 200m. CEO Richard Hyde has commented, “West African Resources is entering a significant growth phase as we aim to be a +400,000oz per year gold producer by 2025.”
• Aeris Resources (AIS) – Has reported drilling results at the Avoca Tank Project with several high-grade copper deposits being found at the site.

ECONOMIC NEWS

• Consumer Confidence has risen 4.9 points last week to 89.4 as reported by the ANZ-Roy Morgan consumer survey. Weekly inflation expectations decreased with most groups of consumers feeling more confident about the market outlook. Homeowners paying off mortgages remained expectedly negative. Despite this increase, the consumer remains well below the neutral level of 100.
• 
• Household spending continued to rise in November 2022, increasing by 11.4% compared to the same time last year, according to figures released today by the ABS.
• The highest increases were in spending in Transport (+35.8%) and Hotels, cafes and restaurants (+23.8%), but growth slowed in comparison to previous months.

• Furnishings and household equipment (-7.0%) was the only spending category to record a fall when compared to November 2021.
• JPMorgan said a full recovery in Australia’s tourism will add 0.5% to its GDP product and the return of international students from China will add another 0.4%.

ASIAN MARKETS

• Companies recorded the weakest growth in wages and input costs in the final three months of 2022 since mid-2020, CBBI said in a report Tuesday. Growth in sale prices also slowed to the worst level since late 2020, it said.

• Consumer inflation slowed to 1.6% in November from 2.1% in the prior month as Covid disruptions suppressed demand, official data showed.
• A Chinese rocket startup successfully put five satellites into orbit Monday. It completed the orbital launch of 19 commercial satellites, a record for a private Chinese company. Virgin Orbit failed from Cornwall.

US AND EUROPEAN HEADLINES

• S&P Global Market Intelligence has upgraded its US real GDP forecast to 2% in 2022 and 0.5% in 2023.
• US Commodity Futures Trading Commission filed a lawsuit against crypto trader Avraham Eisenberg for allegedly manipulating the price of swaps contracts as part of a scam to steal $114m.
• White House under pressure to expel ex Brazilian President Bolsonaro.
• Teneo to buy UK financial PR firm Tulchan for more than £65m.

And finally…..

Clarence

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