ASX 200 rose 64 points to 7195 (0.9%) in a good bounce led by resources. Even a better CPI number couldn’t hold the Mustangs down. Gold miners bounced back after falls yesterday, iron ore miners BHP, FMG and RIO all better by close to 2% and even lithium stocks had a day in the sun. PLS up 2.8% and AKE with a broker upgrade up 5.1%. Base metal stocks in demand. S32 up 1.1% and IGO up 5.2%. Energy stocks better too, WDS up 1.5% and BPT doing OK. REITs did well despite no move on the yields, GPT up 1.2% and GMG up 2.9%. E-commerce is the place to be apparently. Industrials were firm but unexciting. Tech better with WTC up 1.2% but XRO falling 3.3% on UK tax changes. ‘Old skool’ platforms were up, REA up 2.4% and CAR up 2.9%. Banks were becalmed with the Big Bank Basket at $180.90(0.3%). Insurers improved, and Fund managers also doing better, GQG up 2.0%. In corporate news, SQM is moving in the WA lithium race with a possible 20% stake in AZS. On the economic front, busy day, retails sales boosted by Black Friday, CPI above expectations, there goes the pause and job vacancies down a little but still pretty robust. Asian market better, and 10-year yields around 3.71%. Dow futures up 28 points.
- Winners: CTT, NVX, JRV, 29M, IGO, AKE, ARU, MGX, LTR
- Losers: BCB, RNU, XRI, EHE, KAR, PFP, WHC, PNV
- Positive sectors: Iron ore. Lithium. Base metals. Gold miners. Healthcare. REITs
- Negative sectors: Not much.
- High 7204 Low 7148. Relative low volatility today.
- CPI above expectations. 32–year high.
- Big Bank Basket: Closed at $180.90 (0.3%)
- All-Tech index: Up 1.1%
- Gold better at $2720
- Bitcoin: Steady at US$17,408
- Aussie Dollar: Better at 69.04c after CPI. RBA to keep raising?
- 10-Year Yield: Unchanged at 3.71%
- Asian markets: Japan rose 1.1%, China up 0.2% and HK up 1.3%.
- US Futures: Dow up 28 Nasdaq down 5
- NVX +9.35% battery materials back in fashion.
- 29M +7.48% bounce continues.
- SYR +4.76% Ausbiz chat.
- AKE +5.14% broker upgrades.
- TLG +4.43% non-binding offtake agreement.
- RED +4.08% gold miners in demand again.
- NST +1.36% highest level since 2021.
- WBT +4.03% marching higher and higher.
- CTT +12.72% retail luxury remains strong.
- IVZ +7.14% punters back in Mum’s The Word.
- WGX +9.09% Bluebird expansion and drilling update.
- CYM -3.57% yesterday’s hero
- VHT -1.54% profit taking.
- XRO -3.28% UK tax changes.
- PNV -2.40% profit taking.
- KAR -3.24% Brazil driving them nuts
- Speculative Stock of the Day:Aruma (AAJ) +22.64% further high-grade lithium-rubidium intersected at Mt Deans project near Norseman.
IN THE NEWS
- Strike Energy (STX) – Has announced an off-market takeover offer for Warrego Energy (WGO) shares that it does not already own. The offer is for one ordinary share of STX for every share of WGO held, this offer implies a price of 38.5c per WGO share. This is a 37.5% premium to the offer received from Hancock Energy late last year of 28c per share.
- Westgold Resources (WGX) Reports their Bluebird mine Q2 production has increased to 111kt from 91kt last quarter. The mine is also reporting a higher concentration of gold.
- Talga (TLG) – Signs a non-binding letter of intent to Supply French EV battery manufacturer “Verkor” with graphite anode product from their Vittangi project in Sweden. The offtake agreement would be expected to last between 4 to 8 years.
- Lithium behemoth SQM has taken a potential 19.99% stake in Azure Minerals (AZS). The deal involves an initial investment of $4.2m at a price of 25.64c or a 13.9% premium to Azure’s last closing price. SQM has the conditional right to invest up to another $15.8m for a total stake of 19.99%.
- European Lithium (EUR) has been forced to retract an announcement giving a NPV of $US1.5bn ($2.2bn) for its Wolfsburg Lithium Project.
Monthly Consumer Price Index Indicator
- The monthly CPI indicator rose 7.3% in the twelve months to November.
- The most significant price rises were Housing (+9.6%), Food and non-alcoholic beverages (+9.4%), Transport (+9.0%), Furniture, household equipment and services (+8.4%) and Recreation and culture (+5.8%).
Retail Sales – Key statistics
The November 2022 seasonally adjusted estimate:
- Rose 1.4% month-on-month.
- Rose 7.7% compared with November 2021.
- There were 444,000 job vacancies in November 2022, down 5% (-23,000) from August, according to new seasonally adjusted figures from the ABS.
- So many jobs available in arts and recreation. Must be the pay in ‘exposure’ that attracts them. Or not.
- South Korea said the number of people traveling from China who tested positive for Covid-19 went up 14 times from November to December. This was in response to Chinese authorities saying new rules are ‘discriminatory’.
US AND EUROPEAN HEADLINES
- Morgan Stanley’s Mike Wilson is telling investors to brace for a winter downdraft. He believes the S&P 500 could see a 23% drop to 3000. He contends quarterly results will likely kick off a 2023 reset on Wall Street.
- Elon Musk has entered the Guinness Book of Records with his new wealth drop of US$182bn. Crushed it. The previous record being a US$58.6bn loss by Japanese investor Masayoshi Son in 2000. US billionaires collectively lost US$660bn last year. Mark Zuckerberg also broke Masayoshi Son’s record with his US$78bn loss. Nice work guys.
- Another one bites the dust. Low-cost rocket launch from Alaska ends in failure after ‘anomaly’. What is an anomaly?
- Macron government unveils plans to raise French retirement age to 64. Beatles happy.
- Apple is planning to start using its own custom displays in mobile devices as early as 2024, an effort to reduce its reliance on technology partners like LG and Samsung.
- Cate Blanchett wins Golden Globe. Says Tar very much. Baz misses out. Left the building.