ASX 200 closed down 49 points at 7146 (-0.7%) as China and US worries weighed. Super Thursday results also disappointed from TLS to NXL. A worse-than-expected jobs number at 3.7% helped the ‘RBA is done’ narrative and caused a rally off the lows but lacked conviction. Banks were mixed with the Big Bank Basket down to $173.41 (-0.8%). MQG fell hard down 2.0% with insurers mixed. QBE down 1.6%. Healthcare also in trouble today, CSL off 0.7% and RMD snapping back to reality after outperforming in the storm. REITs mixed with results in focus. GMG up strongly 5.7%. Industrials weaker across the board with TLS down 2.8% after aborting plans to sell its infrastructure business. Consumer stocks eased too, WOW off 1.7%, COL down 1.5%, and TCL copping some downgrades off 4.9%. Tech eased but did recover with the All–Tech Index up 0.4% WTC off 0.4% and XRO down 1.8%. Miners recovered from lows in the iron ore space with BHP and RIO modestly higher. Lithium stocks under pressure as CXO dropped a bombshell falling 24.8% on a capital raise. Gold miners also on the nose, NCM down 1.7%, and EVN fell 4.8% on results. In more corporate news, SUL rewarded shareholders with a special dividend and rose 2.9%. ING rose 14.8% on better-than-expected numbers, CXO dropped 24.8% on its deeply discounted raise,  ORA rose 3.4% on results and IPH in demand rising 10.8%. SHL dropped 5.7% as CV19 effects wear off. On the economic front, jobs numbers showed a slip in the unemployment rate to 3.7%. Asian markets still under pressure, but modest losses. Japan down 0.3%, China off 0.3% and HK down 0.9%. 10-year yields higher at 4.33%.

HIGHLIGHTS

  • Winners: ING, IPH, MGH, RIC, WBT, TPW, GMG
  • Losers: CXO, NXL, INR, DHG, APM, PNV
  • Positive sectors: REITs Oil and Gas Coal.
  • Negative sectors: Everything else.
  • High 7191 Low 7107
  • Big Bank Basket: $174.79 (-2.5%)
  • All-Tech index: Up 0.4%
  • Gold:  Higher at $2962 as AUD slips.
  • Bitcoin: Slips to US28633
  • Aussie Dollar:  Slides to 63.97c. Jobs number worse than forecast.
  • 10-Year Yield: Higher at 4.33%.
  • Asian markets: Japan down 0.3%, China down 0.3% and HK down 0.9%.
  • US Futures: Dow up 60 Nasdaq up 13
  • European markets looking at a weaker opening by 0.5% plus.

MAJOR MOVERS

  • ING +14.8% Love ‘em.
  • WBT +6.9% finding some support.
  • TPW +6.6% brokers still warm.
  • 88E +8.3% rights issue despatch of offer document.
  • IPX +3.9% IperionX to produce titanium plate for Lockheed martin.
  • CXO -24.8% smashed on cap raise. Shorts happy.
  • NXL -9.1% treated unfairly perhaps?
  • DHG -7.8% REA still much more attractive.
  • CHN -5.8% no news.
  • GQG -5.1% FUM news.
  • AW1 -14.3% eye of the Storm with fourth drill results.
  • LM8 -9.2% placement and SPP.
  • NXD -29.2% trading update.
  • SHL -5.7% CV19 effects wearing off.
  • SYA -4.0% Sayonara.
  • Speculative Stock of the Day: Nothing on any volume.
  • Winners: ING, IPH, MGH, RIC, WBT, TPW, GMG
  • Losers: CXO, NXL, INR, DHG, APM, PNV

HEADLINES

  • The number of people in work fell by 14,600 in July and unemployment increased by 35,600. Unemployment increased from 3.5% to 3.7%, slightly higher than market expectations.
  • Citi says the RBA is more sensitive to downside surprises in the labour market, and today’s jobs report gives it scope to wait and see how the labour market and inflation evolve.
  • RBNZ Chief Adrian Orr said the nation’s economy needed a mild recession at the very least to slow activity before policymakers could consider reducing interest rates. Ithewld rates steady at 5.5% yesterday.
  • China’s central bank set the yuan midpoint at a six-week low against the dollar.
  • China’s Premier Li Qiang said the country would work to achieve its economic targets for the year.
  • Japan exports fell 0.3% in July from a year earlier for the first time since February 2021. Japan imports slumped 13.5% in July in a fourth-straight monthly decline.
  • Morgan Stanley reduced its forecasts for China’s economic growth into next year, citing weaker investment due to the property market slump and local government financial stress.
  • Battery material groups say use of solid-state technology will accelerate.
  • VinFast is currently worth US$85bn more than Ford and GM. BMW and Volkswagen are both worth around $69bn That will not end well.
  • JD.Com posts revenue beat.

Went to the pub last night dressed as a tennis ball. got served straight away

Solar power is the future,
but …it won’t happen overnight.

Someone ripped some pages out of both ends of my dictionary today.

It just goes from bad to worse!

Clarence

XXXX