ASX 200 closed up 48 points to 7328 (0.7%) as the rally started to run out of juice in the short term. Banks took up the baton as the Big Bank Basket rose to $186.05 (+1.2). CBA up 1.3% and NAB up 1.6%. MQG rallying another 0.7% with insurers better, QBE up 0.8%. REITs continued to push higher with SGP up 0.5%, SCG up 1.4% and Fund Managers also better, GQG up 3.3% and MFG up 2.6%. Industrials were strong, TLS up 0.3%, WES up 0.7% and TCL ahead by 1.1%. ‘Old Skool’ platforms rallied too, REA up 3.6% and SEK up 3.9%. New tech better, WTC up 1.4% and XRO up 0.6%. The All–Tech Index up 1.2%. Resources were mixed, BHP better by 0.5% as it eyes $50. RIO up 0.9% and gold miners better but hardly the stuff of dreams today. Lithium stocks under some pressure with PLS down 4.1% and IGO off 1.9%. Energy stocks up with WDS up 1.2% and STO up 2.4% with coal stocks bouncing YAL up 1.6% and NHC up 5.1%. In corporate news, 360 gave us a business update with some job cuts helping sentiment up 11.1%. In economic news, home loan approvals tumbled YoY 24%. Housing lending fell 3.7% in November. Asian markets, Japan fell 1%, China up 0.8% and HK up 0.2%. 10-year yields up to 3.59%. Dow futures down 63 points, Nasdaq futures down 41 points. 

HEADLINES

• Winners: MGX, 360, IMD, SDR, WGX, DYL, EMR
• Losers: IMU, TYR, INR, CBO, LKE, CXO, JRV, PLS
• Positive sectors: Banks. Iron ore. Industrials. REITs. Oil and Gas. Gold miners.
• Negative sectors: Lithium, staples, Utilities
• High 7358 Low 7282
• Big Bank Basket: Closed at $186.05(1.2%)
• All-Tech index: Up 1.2%
• Gold better at $2728
• Bitcoin: Surging US$18833
• Aussie Dollar: Better at 69.52c after Trade data.
• 10-Year Yield: Better at 3.59%
• Asian markets: Japan fell 1%, China up 0.8% and HK up 0.2%.
• US Futures: Dow down 63 Nasdaq down 41

MAJOR MOVERS

• 360 +11.07% business update and job cuts
• MGX +11.82% iron ore play
• SDR +5.49% returning tourists.
• MAF +4.98% bounce after yesterday’s sell off.
• WBT +3.27% keeps on trucking
• POS +15.38% Marcus will be happy.
• VHM +9.35% found a base. Added to Portfolio.
• EUR +10.26% non-binding agreement to build hydroxide plant.
• PNR +4.17% gold boom.
• DUB -9.00% pressure remains.
• NWF -2.78% appointment of NED.
• CXO -4.62% pressure remains.
• PLS -4.09% lithium stocks down.
• INR -5.21% profit taking
• TYR -5.52% profit taking
• IPO of the Day: Gold Hydrogen (GHY) +2.00% Bases covered with name.
• Speculative Stock of the Day: Absolutely nothing on any volume.
• Above Average Volume: CPO, DOU, RDG, PFE

IN THE NEWS

• Mayne Pharma Group Limited (MYX) – Announces the launch of HALOETTE in the US market.
• NEXTDC (NXT) – Announced entering into a $400m Syndicated debt facility agreement to fund ongoing incremental growth.
• Life360 (360) – Announced further acceleration of path to profitability with continued strong momentum in 4Q22. Growth in the core life360 membership grew 54% in line with guidance. 360 now expects to deliver positive EBITDA from CY23 Q2. This is one quarter earlier than the initial guidance.

ECONOMIC & OTHER NEWS

• The value of owner-occupier refinancing between lenders rose 9.1% to a new high of $13.4bn in November.

In November 2022, new loan commitments (seasonally adjusted):

• Fell 3.7% for housing.
• Fell 1.3% for personal fixed-term loans.
• Fell 62.1% for business construction (a typically volatile series) and fell 1.7% in trend terms.
• Fell 0.7% for business purchase of property (a typically volatile series) and fell 1.6% in trend terms.
• HSBC said the drop in November’s home loan approvals which took the year-on-year decline to 24% marks the fastest such pace since the global financial crisis. Housing lending fell 3.7% in November from October.

ASIAN MARKETS

• The Bank of Korea has lifted its cash rate 25 basis points to 3.5% as expected.
• China’s annual trade surplus hit a record high in 2022 in yuan terms, as surging exports through the first half of the year offset a global drop-off in demand. Exports fell about 0.6% in yuan terms in December. That compared to a 0.7% increase in November.
• Imports increased about 1.5% from a year earlier.
• Chinese oil demand seen hitting record on reopening. Daily consumption may expand by 800,000 barrels, a Wood Mackenzie survey shows.

• TSMC surged as much as 4.6% Friday after investors bet the world’s most valuable chipmaker would be among the first to emerge from an industry downturn in 2023.
• Yen is at a seven-month high against the USD.

US AND EUROPEAN HEADLINES

• JP Morgan, Citi, Bank of America, and Wells Fargo are all expected to post a fall in quarterly earnings as the US economy turns lower. Results tonight.
• Apple CEO Tim Cook to take 40% pay cut this year.
• Sweden discovers biggest rare earths deposit in EU.
• Baillie Gifford admits ‘humbling year’ after US$14bn loss on Tesla and Shopify.
• Vale Lisa Marie.

And finally….

Clarence

XXX