ASX 200 rose 29 points to 6954 (+0.4%) ahead of NFPs tonight. Banks led the charge higher with the Big Bank Basket at $175.74 (+1.2%). CBA up 1.1%, with WBC the standout, up 2.1%. Insurers rallied, QBE up 2.7%, and MQG doing better up 0.5%, but MFG fell 18.5% on lower FUM numbers again. REITs slightly easier after a good day yesterday. GMG down 0.9% and SGP down 0.5%. Healthcare mixed, although CSL finding some support, up 0.3%. RMD eased 1.7% after gains yesterday. Industrials slightly better, WOW up 0.3% and COL doing well up 0.6%, with Tech relatively flat. The All–Tech Index flat, with XRO falling 0.6%. Meanwhile, in resources, lithium stocks remained under pressure as brokers rushed to downgrade. PLS down 0.8%, and IGO falling another 4.4%. Iron ore miners are better, BHP up 1.2%, with gold miners finding some friends. EVN up 2.5%, and NST up 1.3% on some bargain hunting. Oil stocks eased slightly as crude steadied a little, WDS down 0.4%. In corporate news, RIO rose 1.1% on news of a US$100m loan to infrastructure builders for Simantou in Guinea. GQG rallied 3.1% on FUM news. In economic news, the RBA released its latest financial stability report, showing no significant rise in loan issues as employment stays strong. Asian markets mixed as Golden Week nears an end. HK up strongly. European markets to open around 0.4% higher. 10-year yields steady at 4.54%. Dow Futures down 35 points. NASDAQ Futures down 5 points. 

HIGHLIGHTS

  • Winners: RED, RMS, DEG, GQG, DYL
  • Losers: MFG, AZS, PXA, CXO, CHN, IMD, IGO
  • Positive sectors: Banks. Iron ore. Gold miners.
  • Negative sectors: Oil and gas. Lithium. Base metals. REITs.
  • High 6973 Low 6923
  • Big Bank Basket: Rallies to $175.74 (1.2%)
  • All-Tech index: Unchanged.
  • Gold:  slips to $2,861
  • Bitcoin: Steady around $27494
  • Aussie Dollar:  Steady at 63.68c
  • 10-Year Yield: Lower at 4.55%.
  • Asian markets slid, Japan unchanged and HK up 1.8%.
  • US Futures: Dow down 11 Nasdaq up 3.
  • European markets expected to open higher ahead of NFP. Bond yields falling.

MAJOR MOVERS

  • RED +11.3% gold back in fashion.
  • DEG +3.2% strong bounce.
  • GQG +3.0% good FUM.
  • DXB +19.4% kicks after positive DMX-200 announcement.
  • AKE -2.9% director’s interest.
  • AZS -8.8% no real reason.
  • PXA -7.4% broker downgrades on presentation.
  • CXO -5.4% lithium under pressure.
  • CHN -5.3% slide continues.
  • MFG -18.5% no FUM here.
  • 4DS -8.0% giving back gains.
  • BRN -9.1% falls continue.
  • SYR -9.2% battery metals under pressure.
  • Speculative Stock of the Day: Biotron (BIT) +26.3% volatility continues. Not bad volume.

HEADLINES

RBA Statement of Financial Stability – Some highlights. More details here.

  • The vast majority of Australian borrowers have continued to service their debts in the face of higher inflation and interest rates.
  • The business sector remains resilient overall, as strong demand and high cash buffers have supported business profitability and balance sheets.
  • There are few signs of financial stress among owners of Australian commercial real estate.
  • The vast majority of household borrowers have continued to service their debts.
  • Hang Seng Index rose more than 1.8% in early trading, leading wider gains in the region, boosted by financials and technology stocks.
  • Exxon Mobil is in talks to acquire Pioneer Natural Resources with a potential US$60bn deal. Potentially the largest deal of the year so far. It would make Exxon the top producer in the most prolific US oil basin.
  • China Mineral Resources, the buying agency set up to increase Beijing’s power in negotiations, is in discussions with RIO and other leading miners over next year’s supply.
  • ‘X’ (formerly Twitter), said that it’s testing three tiers of premium service, which would allow the company to charge customers different amounts depending on how many ads are shown.
  • Market odds of another US rate increase by year-end drop to 30% as bond yields surge.
  • Alibaba accused of ‘possible espionage’ at European hub.
  • JPMorgan’s Marko Kolanovic is bracing for a 20% sell-off to hit the S&P 500.
  • Trump claims he is immune from prosecution in 2020 election case.
  • UK Labour wins Rutherglen by-election in boost for election hopes.
  • The IMF predicts a “mild recession” for the German economy this year. Georgieva also said the resilience of the world economy had been “remarkable.”

And finally….

Wife left me because because because because she thinks I’m obsessed with the wizard of oz.

Clarence

XXX