ASX 200 slid 15 points to 7284 (-0.2%) after an early loss kicked on by RBA minutes reminding all that there could be more rate rises to come. Banks held up with the Big Bank Basket up to $176.79 (1%). NAB led the charge higher, up 2% with ANZ up 1.7%. Insurers too in demand, QBE up 0.4% and some buying in financial services with GQG up 1.3%. ASX continues to struggle down 0.2%. REITs slid with GMG off 1.1% and SGP hurt falling 2.4% as yields rose again. Industrials were also weaker, drifting lower, ANN off 14% on a cost pressure warning, TLS fell 1.9% with ‘Old Skool’ platforms lower, REA down 0.4% and CAR falling 1.3%. Consumer stocks also on the nose, ALL off 2.7%, QAN down 0.8% and WOW down 1%. Healthcare mixed, CSL finding a base up 2.2% on broker upgrades, RMD down 0.2% and SHL falling 1.2%. Tech stocks flat, the All- Tech Index down 0.04%. Resource stocks were again sold lower with BHP off 1%, RIO down 0.8% and IGO falling 3.8% on broker downgrades. Gold shares held up, just, lithium majors did ok, PLS up 1.2% and AKE better by 0.8%. Oil and gas sold down with WDS off 1.1% on a Sangomar project update. In corporate news, ANN fell 14% on an update, AZJ off 5% as it held an investor day. SYR slipped 16.3% on its quarterly and IVC fell 3.7% as the TPG deal continues to drag. On the economic front, ANZ Roy Morgan Consumer Confidence again down and RBA minutes suggest the RBA is far from done, but data dependent. Meanwhile Asian market slipped slightly, Japan back from Marine Day rose 0.2% and HK after a Typhoon day playing catch up down 1.8% with China flat. 10-year yields 3.97%. Dow futures up 2 points. NASDAQ futures down 21 points.

  • Winners: KGN, CUV, AZS, RSG, NWH, TYR
  • Losers: SYR, ANN, MEI, PMT, TLG, VUL

MAJOR MOVERS

  • KGN +7.7% continues to march to a different drum.
  • CUV +6.3% bottoming.
  • TYR +4.9% ceasing to be a substantial shareholder.
  • WBT +3.3% sold too early.
  • NEU +4.2% broker upgrades.
  • GNC +2.3% upgrades and wheat prices.
  • AQZ +2.4% taking off again.
  • GAL -5.1% quarterly report.
  • PMT -7.5% slipping lower.
  • LRS -4.4% SLM weighs.
  • SYR -16.3% production report.
  • ANN-14% warns on costs and FX.
  • AZJ-5% Investor Day presentation.
  • IVC -3.7% still working on a deal with TPG.
  • IGO -3.8% broker downgrades.
  • Speculative Stock of the Day: Indiana Resources (IDA) +75.6% wins a US109.5m award against Tanzania in the International Centre for Settlement of Investment Disputes. It relates to the unlawful expropriation of the Ntakja Hill project.

COMPANY NEWS – HIGHLIGHTS

ECONOMIC NEWS

RBA MEETING MINUTES – Click here for the full statement

  • Inflation remains above central banks’ targets in most advanced economies.
  • Surveys show expansionary conditions in the services sector but weak conditions in the manufacturing sector.
  • China’s economic recovery has lost momentum.
  • Commodity prices are mixed, with most below their levels a year earlier.
  • Domestic economic growth in Australia has slowed, with GDP growth below population growth.
  • Inflation in Australia remains high, with services price inflation remaining a concern.
  • Wages growth is expected to rise, and total real household incomes have declined.
  • The established housing market has continued to recover.
  • Monetary policy considerations include high inflation, little spare capacity, a tight labor market, and a stabilising housing market.
  • The decision is to hold the cash rate unchanged at 4.1%, with a reassessment planned for the next meeting. Further tightening may be required, depending on the evolving economic and inflationary conditions.

ANZ Roy-Morgan Consumer confidence in Australia continues to decline for the third consecutive week, reaching one of the lowest levels since the COVID-19 outbreak. The decline is primarily driven by weaker confidence in current financial conditions, with record-low confidence among renters and below 70 for those paying off their homes.

ASIAN NEWS

  • Chinese property company Evergrande posted steep losses in its long overdue results for 2021 and 2022. The company saw a total net loss of 686.2bn yuan (US$95.68bn) for 2021, and a 125.8bn total net loss in 2022.

US AND EUROPEAN HEADLINES

  • Blinken in China. Coal and climate change on the agenda.
  • Morgan Stanley and Bank of America (BoA) reporting before the open today.
  • Eli Lilly drug shown to slow Alzheimer’s progression.
  • Novartis raises FY outlook and launches a US$15bn buyback.
  • Large US banks cutting Chinese forecasts.
  • Microsoft and Activision are nearing the finish line on their $69bn deal, but aren’t likely to close it by a Tuesday deadline. Regulators in the UK are the stumbling block.

And finally….

There are 10 types of people in this world, those that understand binary code and those that don’t..

I haven’t kept up my subscription to Scrabble Club, and now they’ve started sending me threatening letters.

Clarence

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