ASX 200 blasted 70 points higher to 7041 (+1.0%) as bond yield fell hard on safe-haven buying of bonds. Talk of rate cuts as Israel/Hamas conflict the focus. Gold miners are better but not spectacular, with NST up 1.5% and EVN up 0.3%. Lithium plays bouncing hard as a short squeeze takes hold. PLS up 6.2%, and IGO up 3.5%. LRS having a good day too on broker upgrades, up 7.6%. Big miners off highs with BHP unchanged, FMG up 0.8%. Oil stocks modestly higher as crude rolled over WDS up 1.3% and STO up 0.5%. Some buyers emerged in base metals, although uranium stocks eased back, PDN down 1.5% and BOE off 4.8%. Banks better again ahead of results next month, CBA up 0.7% and ANZ rising another 0.6%. The Big Bank Basket up to $176.90 (0.6%). Insurers better, and MQG up 1.3%, with MFG bouncing slightly up 4.2%. REITS rallied hard on yield falls, GMG up 2.4% and VCX up 2.0%. Tech also rallying on lower yields, XRO up 4.4% and WTC better by 2.1%, with the All-Tech Index up 2.3%. Industrials firmed, CSL and healthcare stocks better, TLS did well, up 2.1%, and staples also in demand. In corporate news, ORG rallied 5.5% as the ACCC gave Brookfield the green light, WBT up 4.9% on Israel update, CXO up 7.4% on a broker upgrade. In economic news, NAB Business survey out and steady as she goes. ANZ Consumer sentiment rose slightly. Asian markets were better as Japan returned from Sports Day, up 2.1%, China down 0.5%, and HK struggling with Typhoons. 10Y yields fell to 4.45%. Dow Futures up 6 points. NASDAQ Futures up 23 points.

HIGHLIGHTS

  • Winners: CHN, LRS, CXO, SYA, PLS, STX, ORG
  • Losers: BOE, TYR, NEU, JDO, NCM
  • Positive sectors: Banks. Healthcare. Insurers. Oil and gas. Tech.
  • Negative sectors: Nothing.
  • High 7058 Low 6972
  • Big Bank Basket: Steady at $176.90 (0.6%)
  • All-Tech index: Up 2.3%
  • Gold: falls to $2903
  • Bitcoin: falls to $27615
  • Aussie Dollar:  Better to 64.12c
  • 10-Year Yield: Lower at 4.45%
  • Asian markets better, Japan leading gains up 2.4% after a public holiday yesterday. Taiwan closed. HK up 1.3%. China down 0.5%.
  • US Futures: Dow up 12 Nasdaq up 25. Bond markets reopen, yields expected to fall on safe-haven buying.
  • European markets opening around 0.5-1% higher. Oil easing back a little in Asia.

MAJOR MOVERS

  • LRS +7.6% broker report.
  • CHN +7.7% short covering.
  • CXO +7.4% PLS +6.2% sentiment shift and shorts covering.
  • WBT +4.9% Israel update.
  • MFG +4.2% Macquarie sees some value emerging.
  • PNV +3.7% looking for a bottom.
  • A11 +21.3% power access begins.
  • AIS +8.1% broker upgrade.
  • BRN +17.7% punters looking for bargains.
  • ORG +5.5% ACCC says yes, now to the price.
  • JDO -3.2% capital note offer considered.
  • BOE -4.8% PEN -7.7% uranium sells off.
  • NEU -3.9% sellers in charge.
  • PGC -2.7% directors interest updated.
  • Speculative Stock of the Day:  Raiden Resources (RDN) +10% the only one of interest. Highest-grade lithium and rubidium results from Andover South.

HEADLINES

  • NAB Business Survey – Business confidence was steady at +1 index point, where it has remained for several months. Confidence improved in retail (up 7pts) and in mining and, transport & utilities.
  • ANZ – Roy Morgan Consumer confidence rose 1.9pts, and the four-week moving average increased 0.6pts.
  • Country Garden says it expects it will not meet all offshore payments. The company said Tuesday that September contracted sales plunged 81% from a year earlier.
  • Tesla’s China-made EV sales decreased 10.9% year over year for the month of September, according to the China Passenger Car Association.
  • Top US general warns Iran to stay out of Israel’s conflict with Hamas.
  • Nvidia cancelled its AI conference in Tel Aviv next week due to safety concerns.
  • Markets are pricing in an 86% likelihood that the Fed will hold rates steady at November meeting.
  • Yellen sees no market ‘dysfunction’ from US bond rout.
  • Blinken reaffirmed commitment to release all hostages.
  • Robert Kennedy Jr launches independent bid for US president.

And finally….

My grandfather has the heart of a lion…… and a lifetime ban at the zoo.

Clarence

XXX