ASX 200 closed up 19 points to 7357 (+0.3%) in a subdued day of trade. US CPI data tonight key. Energy sector is the top performer today as oil prices jump over US$84 a barrel, intensifying concerns that resurgent inflation will force central banks to raise rates further. STO, BPT and STX all gained over 2%. Coal stocks doing even better, YAL +4.8%, WHC +4.3% and NHC +5.8%. The big four banks let go of yesterday’s gains. WBC the only bank big bank in the green, up 0.3%. Big Bank Basket slipped 0.2% to $180.61. Tech stocks faced a digital dilemma today, with most struggling while others managed to debug their losses. XRO  slid 3.7%, WTC off 1.0%, while DDR rose 1.4%. All-Tech Index up down 0.9%. REITs rose despite rising bond yields, MGR up 1.3% and SGP +0.7%. Healthcare stocks showed resilience, nursing a small gain. CSL +0.8%, COH +0.8% and MSB +5.7%. Insurers were good to SUN +1.4% and IAG up 1.5%. Industrials held steady, WES +1.2%, JHX +0.9%, but A2M slipped 2.5%. Iron ore giants mixed BHP and FMG gained, while RIO fell another 2.8% as it went ex dividend. Gold down, ahead of US CPI results. In corporate news, CCT jumped 12.1% on revenue results, DOW off 6.4% reported a $386m annual net loss, QBE down 1.2% on results, AMP up 4.6% raises full-year profit forecast, and LRS flat, on positive deposit results. In economics, Australia’s inflation expectations eased to 4.9% in August from 5.2% the previous month. Asian markets mixed. Japan up 0.9%, HK down 0.7% tracking Wall St overnight, and China down 0.1% on weak sentiment. Australian 10Y yield and 2Y yield up 4bps. Dow Jones futures up 139 points, and Nasdaq futures up 63 points.

HIGHLIGHTS

  • Winners: CTT, BLD, DYL, BOE, SYA, MYR, AUB
  • Losers: RIO (Ex Div), DOW, AZS, VUL, DJW (Ex Div), XRO
  • Positive sectors: Oil and gas. Healthcare. Lithium. Building products.
  • Negative sectors: Tech. Insurers.
  • High 7357 Low 7321
  • Big Bank Basket: $180.61(-0.2%)
  • All-Tech index: Down 0.9%
  • Gold weaker at $2931
  • Bitcoin: Slips to US29503
  • Aussie Dollar:  Steady at 65.43c
  • 10-Year Yield: Back to 4.03%
  • Asian markets: Japan up 0.8% HK down 0.9%, China down 0.3%
  • US Futures: Dow up 139 Nasdaq up 63.
  • European markets looking at a firmer opening.

MAJOR MOVERS

  • CTT +12.1% luxury never went away. Great results.
  • BLD +8.5% rebuilt and on track.
  • BOE +8% uranium interest building.
  • AUB +6.3% good results.
  • PDN +5.9% uranium back in favour.
  • SMR +5% BCB+29.0% WHC +4.3% a merry old soul.
  • LKE +27.3% announces date of a presentation on Kachi progress.
  • 4DX +15.3% low volume rally.
  • A11 +10.1% directors buying.
  • AIS +11.6% exploration update.
  • DOW -6.4% down downer.
  • A2M -2.5% broker downgrade.
  • VUL -4.8% corporate presentation.
  • XRO -3.7% tech sell-off.
  • AGL -3.1% gas escapes.
  • IPD -7.1% profit taking.
  • IR1 -9% unwinds the run yesterday.
  • AW1 -7% investor presentation.
  • Speculative Stock of the Day: TrueNorth Copper (TNC) +22.7% good volume. First drill hole hits 66.5m at 4.95% Cu in first drill hole at Vero Resource Mt Oxide. Not bad for the first.

HEADLINES

  • All about the US CPI tonight. Headline rate 3.3% and 4.7% core.
  • Australian LNG producers in talks to avert strike as energy prices climb. About 99% of 180 production employees on Woodside’s North Rankin, Goodwyn and Angel LNG platforms off the coast of Karratha voted for protected action options. First such strike in 30 years.
  • Country Garden, one of the largest non-state-owned developers by sales, has reportedly missed two coupon payments on dollar bonds that were due Sunday.
  • Rice prices surged to their highest in almost 12 years. The All-Rice Price Index (the ‘Paddy’) rose by 2.8% in July to 129.7 points, its highest value since September 2011.
  • Baidu, ByteDance, Tencent and Alibaba have made orders worth $US1billion to buy about 100,000 A800 processors from Nvidia to be delivered this year according to reports.
  • President Joe Biden will host Anthony Albanese for an official visit to the US on Oct. 25. The visit will include a State Dinner. Did someone say KFC?
  • US restrictions on Chinese investments are expected to be narrower than some had feared. China slams move. Says the order “seriously disrupts the security of the global industrial and supply chains.”
  • Ecuador presidential candidate assassinated.
  • Grain exports back in Russia’s sights in Ukraine war.
  • European gas price jumps almost 40% over supply disruption fears. Fuelling inflation fears too.
  • In Manhattan, the average monthly rent in July was US$5,588, up 9% over last year and marking a new record. Median rent, at US$4,400 per month, also hit a new record.

COMPANY ANNOUNCEMENTS

And finally….

Clarence

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