ASX 200 surged again as resources boomed, the index up 85 points to 7280 (1.2%). Big miners in demand with BHP up 1.8% to another 52-week high, FMG up 2.8% and RIO up 1.5%. Lithium and rare earths better too, PLS up 4.5% and LYC up 2.1%. Gold miners mixed, NCM down 0.6% and NST up 0.9%. Energy stocks a little mixed, coal stocks eased, SMR down 2.5% WHC off 1.4% while oil stocks better, WDS up 2.1%, STO up 1.0%. Industrials once again firm but unexciting. REITs taking their cue from US peers and lower 10-year yields, GMG up 1.5%, SCG up 1.0%, healthcare up led by CSL up 1.2. Others slightly firmer. Banks another strong sector with the Big Bank Basket shaking off its recent torpor, up to $183.73 (1.6%). MQG rallied 1.6% as Goldman Sachs wields the axe. In corporate news, MAF downgraded expectations, falling 10.7%, GOR stumbled 3% lower with production 14% below consensus, the PDL/PPT deal is done and dusted. IRI flags an EBITDA rise but warned on cost pressures, up 10%. In economic news, good trade numbers helping sentiment for miners. Asian markets becalmed. 10-year yields slipping to 3.59% as bets increase that RBA will go another 25bps in Feb.

HEADLINES

• Winners: MSB, TYR, INR, MGX, CDA, PLS, LTR, ADT, PNV.
• Losers: AMF. TIE, JRV, TER, RNU, NHC, BCB.
• Positive sectors: Banks. Iron ore. Lithium. Oil and Gas. Industrials. REITs.
• Negative sectors: Gaming.
• High 7289 Low 7206
• Big Bank Basket: Closed at $183.73 (1.6%)
• All-Tech index: Up 0.9%
• Gold better at $2725
• Bitcoin: Surging US$18212
• Aussie Dollar: Better at 69.12c after Trade data.
• 10-Year Yield: Falls to 3.59%
• Asian markets: Japan rose 0.1 China down 0.1% and HK down 0.3%.
• US Futures: Dow up 15 Nasdaq up 11. CPI beckons.

MAJOR MOVERS

• TYR +7.01% moving on up.
• INR +6.67% lithium play in US.
• LTR +4.33% buyers back in.
• ADT +3.79% drill results expand Rupice.
• PLS +4.52% webcast on January 20^th.
• CXL +3.48% bouncing up again.
• VHM +10.31% finding support.
• IVZ +6.67% Mum’s the word. Buyers back.
• DRO -5.56% profit taking.
• MAF -10.71% profit downgrade.
• JRV -5.80% profit taking.
• SYA -2.13% stalling.
• SMR -2.46% TER -6.50% BCB -3.17% coal not such a merry soul.
• GOR -2.99% production a little light on.
• Speculative Stock of the Day: Only one in contention today. Very low volumes in the spec world. Norwest Minerals (NWM) +60.00%. Maiden drill program confirms significant copper mineralisation.
• Above Average Volumes (New feature. Helpful?): NWM. AVM. NPM. SIO.

IN THE NEWS

• Adriatic Metals PLC (ADT) – Has identified a new body of mineralisation at Rupice Northwest. Drilling to continue until an updated mineral resource can be released.
• Gold Road Resources (GOR) – Reports Q4 gold production meeting guidance at 314,647 ounces produced. The company ended the quarter with $80.7m, in cash and equivalents. The results came in 14% below consensus sending GOR down 2.7% at open.
• Perpetual (PPT) – Reported the deal to acquire Pendal (PDL) has become legally binding, meaning that PDL shares have been removed from trading on the ASX.
• Endeavour Group Limited (EDV) – Endeavour Group to acquire winery Cape Mentelle in WA.
• Insurance Australia Group Limited (IAG) – Announced renewal of WAQS agreement with National Indemnity Company a subsidiary of Berkshire Hathaway Inc. Now Berkshire free to sell $465m stake.
• Mayne Pharma Group Limited (MYX) – Provides update at conference presentation. Focus on improving profitability and cashflow with a positive EBITA expected in FY24.
• MA Financial Group Limited (MAF) – Downgrades guidance for FY underlying EPS between 38c and 38.5c. MAF has said that its EPS has been affected by completion timing of many of their corporate advisory transactions, representing approximately $5m.

ECONOMIC & OTHER NEWS

• Goldman Sachs has predicted oil prices may rise to $US110 a barrel by Q3 as China reopening increases demand. The bank’s global head of commodities research said “What is the best reopening play? It is oil”.
• Goldman Sachs began layoffs last week, slashing 3200 jobs. The majority of bankers were notified on Wednesday in New York, London, and Hong Kong. Reportedly only giving bankers 30 minutes’ notice to clear out their belongings from the office before their key cards were deactivated.
• Blackrock to cut 500 employees ~2.5% of its global workforce.

• New Zealand house sales fell to a record low in the three months through September. Sales of residential and lifestyle properties fell to 14,966 in the third quarter last year, which was the lowest since records began in 1990.

ASIAN MARKETS

• Chinese Consumer inflation gained 1.8% compared with a 1.6% increase in November, in line with economist expectations. Core inflation, which excludes volatile food and energy prices, picked up slightly to 0.7% after staying unchanged at 0.6% for three straight months.

• The producer price index fell 0.7% in December from a year earlier after declining 1.3% in the previous month, the National Bureau of Statistics said Thursday.
• China hasn’t reported daily Covid cases, deaths since Monday.
• Tesla is close to a preliminary deal to set up a factory in Indonesia

US AND EUROPEAN HEADLINES

• Economists expect to see a slight decline in December’s consumer price index. The consensus forecast for CPI is for a decrease of 0.1% on a monthly basis, but a 6.5% increase from the prior year.
• Core CPI, excluding energy and food, is expected to be up 0.3% in December, gaining 5.7% on a year-over-year basis. Core CPI rose 0.2% in November and 6% on a yearly basis.
• Apple is working on adding touch screens to its Mac computers, a move that would defy long-held company orthodoxy. Steve Jobs hated it as ergonomically terrible.
• Disney names new chair.
• FTX identifies $5bn in liquid assets as it is cleared to explore some sales.
• Russia demotes ‘General Armageddon’ after battlefield failures
• FAA says ‘damaged database file’ prompted halt on domestic US flights
• Vale Jeff Beck. Music game changer.

And finally…

Clarence

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