The ASX 200 gave back most of its gains to end up only 16 points to 6970 (0.2%). After a strong start, caution prevailed, US futures pointed to a negative open and confidence was sapped. Events in the Middle East in focus with gold miners and oil stocks in demand. NCM up 4.7%, NST up 4.0% and EVN up 6.3% leading the charge, lithium stocks on the nose again except for LTR unchanged on the latest assault from Camp Gina. Iron ore stocks mixed, FMG dropped 1.9% despite an announcement on power, RIO unchanged and BHP up slightly. Oil and gas stocks also doing well as crude prices held the 4% gains on the war, WDS up 3.1% and STO rising 4.2% with KAR up 5.7%. Coal stocks also benefitted, WHC up 2.2%. Banks were slightly higher with ANZ up 0.4% the standout. The Big Bank Basket pretty much unchanged at $175.84. Insurers slipped and MQG fell back again, down 0.6%. REITs also off slightly, GMG down 0.1%. Industrials lacklustre with TLS off 0.3%, tech slipping as the All-Tech Index dropped 0.2%. Travel stocks are down, QAN falling 3.8% on higher oil and war issues. In corporate news, MYR appointed a new chair, and on the economic front, the RBA ordered the ASX to “redouble its efforts” to improve its corporate governance and risk management culture. Asian markets ease with China back from holiday break, Japan closed for Sports Day China off 0.6% and HK closed for a typhoon. 10-year yields ease to 4.52%.

MAJOR MOVERS

  • DEG +8.1%, WGX +8.0%, RSG +7.5% gold miners bounce.
  • WDS +3.1% oil stocks better.
  • PNV +2.5% finding some support.
  • CHN +3.3% bargain hunters.
  • AIS +12.1% September quarter preliminary production results.
  • BRN +13.3% cleansing notice.
  • IR1 -19.6% 78m @1.09% from 19m confirms major lithium discovery.
  • WR1 -14.7% equity raise at premium in Canadian tax deal. 122c in AUD.
  • AZS -14.6% outstanding met results from Andover.
  • WBT -9.0% Israel war hurts.
  • MFG -7.2% down and dirty.
  • PLS -4.6% sold off again.
  • KGN -3.0% no news.
  • CXO -2.9% down again.
  • JDO -2.6% chopped.
  • Speculative Stock of the Day: FIN Resources (FIN) +63.6% Large spodumene crystals discovered in pegmatite outcrop in Canada.
  • Winners: DEG, WGX, RSG, SLR, EVN, WAF, KAR
  • Losers: AZS, WBT, MFG, PLS, QAN, SYA, MGX, TYR

HEADLINES

  • The RBA has ordered the ASX to “redouble its efforts” to improve its corporate governance and risk management culture
  • Chinese tourism revenue from the Golden Week holiday jumped year-on-year to edge above its pre-Covid level, but still fell short of government estimates.
  • HK trading suspended in morning session due to a typhoon. Japan closed for Sports Day.
  • Israel is amassing 100,000 troops near the border.
  • US consumers cut back on credit cards as repayment charges hit record high.
  • ExxonMobil’s head of shale arrested for alleged sexual assault.
  • China called for a ceasefire in the Israel-Hamas conflict , and for, “establishing an independent State of Palestine.”
  • UAW Mack Trucks union members to join striking Detroit autoworkers on picket lines after voting down tentative deal.
  • The U.S. military is moving an aircraft carrier strike group and military aircraft closer to Israel as a show of support. The USS Gerald R Ford carrier strike group. Somewhat ironic given the one-time presidency of Ford and his desert exploits.
  • European markets opening mixed to lower. Data releases will include German industrial output for August and Ukrainian inflation data for September.

And finally….

Clarence

XXX