ASX 200 fell another 90 points to 6943 (1.3%) after weak leads from overseas and bond yields pushing higher. RBA leaves cash rates unchanged in Bullock’s first meeting. Low volume and only tentative signs of some bargain hunting appeared. Resources once again the problem as iron ore fell in Singapore. BHP down 1.2%, and FMG off 1.6%. Energy stocks were also under pressure as crude continued to backtrack, WDS down 3.7% and STO off 4.3%. Coal miners are also seeing selling, with WHC down 3.6%. Bullion has been falling hard on stronger USD and rates. NST fell 4.3%, and EVN down 4.9%. Lithium stocks also see sellers gain the upper hand, PLS down 2.9% and AKE dropping 4.8%. Banks held up relatively well as yields rose, CBA down 0.2%, NAB down 0.6% with the Big Bank Basket down to $174.94 (-0.5%). Insurers fell, QBE off 2.0%, and fund managers also fell, with MQG down 0.6%. Industrials slightly weaker, REITs under pressure, GMG down 2.0% and tech stocks also eased, with WTC down 3.0% and XRO off 1.2%. CPU did better after selling its US mortgage business. Unchanged on the news. The All–Tech Index finished down 1.3%. Healthcare and defensive stocks saw some buying as CSL rallied 1.0% on a broker upgrade, RMD better, and WES and ALL both found support. In corporate news, thin on the ground for announcements. On economic news, new dwelling approvals rose 7% in August, and RBA kept rates unchanged as expected. Asian markets eased, with China still closed for Golden Week. HK down 3.2%, and Japan down 1.7% as the Yen weakens. 10-year yields falling slightly to 4.54%. Dow Futures down 84 points. NASDAQ Futures down 37 points. 

HIGHLIGHTS

  • Winners: MAD, EQT, NEU, CDA, GNC
  • Losers: SYA, WGX, WAF, SLX, WBT, PDN, PRU
  • Positive sectors: Healthcare.
  • Negative sectors: Banks. REITs Oil and coal. Lithium. Tech.
  • High 7010 Low 6908
  • Big Bank Basket: Falls to $174.94(0.5%)
  • All-Tech index: Down 1.4%
  • Gold:  Falls to $2,882
  • Bitcoin: Better at $27621.
  • Aussie Dollar:  Falls to 63.15c
  • 10-Year Yield: Lower at 4.55%.
  • Asian markets slip, Japan down 1.5%, China closed and HK down 3%
  • US Futures: Dow down 35 Nasdaq down 14
  • European markets are expected to open down after US and Asian falls.

MAJOR MOVERS

  • DDR +1.3% broker upgrade.
  • NEU +2.3% defensive healthcare.
  • CPU unchanged- sells US Mortgage business.
  • FBR +12.7% deployment of US spec Hadrian prioritised.
  • BTH +9.7% director update.
  • LCY +12.5% mining to commence at Mt Celia gold project.
  • SYA -9,5% gives back gains.
  • WBT -6.9% tech sell-off.
  • WGX -8.1% gold miners under pressure.
  • LRS -5.3% profit taking.
  • PDN -5.9% uranium profit taking.
  • KAR -3.7% crude falls.
  • AVH -19.9% FDA asks for more information.
  • NMT -13.9% chemical co-operation update.
  • JRV –10.3% commences BFS for US cobalt refinery.
  • SGR -1.6% puts Brisbane casino up for sale.
  • Speculative Stock of the Day: Nothing on any volume today.

HEADLINES

  • RBA Keeps rates unchanged at 4.1%. “Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will continue to depend upon the data and the evolving assessment of risks”
  • Building approvals – The total number of dwellings approved rose 7%.
  • Australian lending Indicators

HEADLINES

  • Evergrande shares jumped as much as 42% in early HK trade before paring much of the gains.
  • Since its June high, Taiwan-based TSMC shares have fallen 10%, wiping US$72bn off its market capitalisation. Further weakness may be in store given the recent option activity. Delays to the 3-nanometer chip have not helped.
  • Matt Gaertz filed a resolution on Monday to force a vote to overthrow his political foe, Kevin McCarthy, as speaker of the House.
  • Brookfield swoops for UK wind farms in $1bn deal.
  • UK Conservative Party conference continues.
  • OPEC+ is expected to keep output unchanged.
  • The US has warned China about updated export controls, according to reports, 1 year anniversary of curbs looms.
  • European markets are expected to open lower across the board.

And finally….

Clarence

XXXX