ASX 200 fell 8 points today to 7030 (0.1%) as a late rally saved the day after early losses. The market managed a rally post the monthly CPI number coming in as forecast at 5.2% and kicked in the matchout. Banks were once again a pillar of strength with the Big Bank Basket up to $175.96. CBA up 0.5%, and WBC up 0.7%. Higher yields seem to be helping the big four. Other financials sagged. MQG down 0.7%, and insurers fell too with QBE down 1.0% and SUN off 2.0%. Healthcare was mixed. RMD bounced slightly 4.8% on broker upgrades after its recent falls. CSL is still under pressure, down 1.4%. Tech stocks also down in the dumps, XRO fell 1.3% and WTC off 1.6%, with the All–Tech Index down 0.6%. Industrials mixed, WES fell 0.2%, BXB off 0.8%, and EDV picked up slightly. Resources were mixed, BHP up 0.4% with cheques for the 70c div dropping into accounts tomorrow. Gold stocks fell again, EVN down 3.5%, NCM off 2.1%. Oil and gas stocks eased, WDS off 1.1% and STO up 0.1%. Lithium stocks fell, MIN down 1.2% and AKE falling 0.7%. In corporate news, SGR cratered 9.1% as it completed its capital raising without new funds from Bruce Mathieson. On the economic front, August CPI came in at 5.2% (as forecast), driven by surging fuel prices. Core inflation fell to 5.5% down from 5.8%.  Asian markets are biased to the upside, China up 0.3%, HK up 0.6%, and Japan up 0.3%.10Y yields 4.38%. Dow futures up 85 points. NASDAQ futures up 42 points. 

HIGHLIGHTS

  • Winners: RMD, CEN, CUV, A4N, TAH, NEU, DVP
  • Losers: SGR, VSL, WGX, THL, DEG, SYA, LNK
  • Positive sectors: Banks. Mining services.
  • Negative sectors: Oil. Tech. Gold. Financials.
  • High 7035 Low 7003
  • Big Bank Basket: Rises to $175.96
  • All-Tech index: Down 0.6%
  • Gold:  Steady at $2973.
  • Bitcoin: $26,239.
  • Aussie Dollar:  63.81c
  • 10-Year Yield: 4.38%.
  • Asian markets firms, China up 0.2%, HK up 0.5% and Japan easing 0.1%.  
  • US Futures: Dow up 44 Nasdaq up 41
  • European markets opening mixed.

MAJOR MOVERS

  • RMD +4.8% kicks on US bounce and analyst comments.
  • PDN +1.4% uranium boom continues.
  • DYL +1.2% kicks again.
  • CRN +1.9% majority equity stake sold.
  • TBN +11.5% annual report.
  • MEI +6.4% outstanding ionic clay recoveries.
  • DVP +2.9% updated Woodlawn mine plan.
  • SGR -9.1% completion of placement, ex-entitlement. Mathieson passes on funding.
  • SLX -4.1% not a uranium stock then.
  • DEG -4.7% gold under pressure.
  • BRN -5.3% falls continue.
  • 88E -14.3% thin volume.
  • GNX -6.3% Tesla battery fire in QLD.
  • Speculative Stock of the Day: Haranga Resources (HAR) +53.3% raising $2.86m to expand on maiden uranium resource.

HEADLINES

  • Australian CPI August Release: As widely expected the Headline Consumer Price Index Indicator YoY rose from 4.9% in July to 5.2% to August.
  • Engineering Construction Activity, Australia – Seasonally adjusted work done rose 2.1%. Seasonally adjusted work done for the private sector rose 3.2%.
  • Chinese Golden Week Holiday looms.
  • Evergrande chairman under police surveillance.
  • Profits at China’s industrial firms in August surged 17.2% year-on-year, compared to a 6.7% decline in July,
  • PBoC says it would implement monetary policy in a “precise and forceful” manner to support economic recovery.
  • Analysts downgrade 2023 Chinese GDP projection to 5% from 5.1%: survey
  • Chinese gold prices are surging to record versus rest of the world.
  • WGA approved a new deal with Hollywood studios and sends to members to vote.
  • European markets are heading for a mixed open Wednesday. Data releases include French consumer confidence figures for September and Swedish consumer confidence for the same month. Italian Budget.

And finally….

Good to be back…been a while

Clarence

XXX