Wednesday 18th October – Australian Market Wrap | Beeks Downunder-Because not all financial news is boring!

ASX 200 rose 22 points to 7078 (0.3%) rallying into the close in cautious trade again. Middle East’s tragic events have been weighing on sentiment as gold and oil move higher in Asia. Banks were slightly higher with NAB the best of the bunch up 0.6% with the Big Bank Basket up to $178.24( +0.24%). Insurers pushed up again as yields rallied on RBA chief’s comments. 10-year yields up to 4.65%. QBE up 2.5% and SUN up 0.9%. MQG unchanged. REITs slid with GMG off 0.6% and CLW down 1.6%. Industrials generally were weaker, Tech eased in places, XRO down 2.0% and the All–Tech Index unchanged. TLS fell 0.3% whilst TPG rose 1.3% on fibre diet. Healthcare saw some gains, CSL up 1.1% and RMD up 0.9%. Miners were better, BHP sold its coal business to WHC on ‘BNPL’ terms, WHC up 11.5% on the deal, BHP slightly higher up 0.7% on production numbers too. Gold miners back in the green as the tragic events in Gaza push bullion higher. GMD up 7.3% as the DCN deal looks to be done already. In the lithium space, PLS rose 0.3% despite some negative broker talk on production numbers to come. AKE up 0.9% and IGO up 0.3%. LPI got the much-anticipated 57c bid from Codelco and rose 27.7%. Oil and gas stocks in demand, WDS up 2.2% on a production report and STO following in its wake up 2.0%. BPT made a gas discovery and rose 1.6% Even BRU, long in the canine club, rose 16.3%. In corporate news, CCP crashed 30.5% on debt ledger issues in the US. On the economic front, RBA head teller spoke about the need to ensure that inflation does not become entrenched. Not shying away from more rate rises if needed. Asian markets were weak with Japan down 0.1%, China off 0.6% and HK down 0.1% despite better-than-expected data from China on GDP and retail sales.

HIGHLIGHTS

Winners: WHC, GMD, WBT, STX, CMM, NEU, TWE
Losers: CCP, TYR, BAP, HUB, CMW, CTT
Positive sectors: Banks. Oil and gas. Gold miners. Healthcare. Insurers. Coal.
Negative sectors: Industrials.
High 7077 Low 7045 Narrow range.
Big Bank Basket: Higher at $178.24 (+0.24%)
All-Tech index: Unchanged.
Oil up 2.4% on Middle East issues. Gold up 0.7%
Gold: Better to $3037
Bitcoin: rallies to $28,521
Aussie Dollar: A little firmer at 63.79c
10-Year Yield: Higher at 4.65%
Asian markets weaker Japan down 0.2%, China off 0.6% and HK down 0.1%
US Futures: Dow down 20 Nasdaq down 29
European markets mixed, FTSE up on energy and miners.

MAJOR MOVERS

WHC +11.5% buys BHP coal assets in BNPL deal.
STX +6.3% conference presentation.
LRS +1.9% Colinas drill results.
GMD +7.3% DCN bid progressing.
DYL +2.8% PDN +2.7% uranium back on shopping list.
LPI +27.7% Codelco bids 57c.
SXL +18.5% NBIO from PE and KISS owner.
PAR +10.3% on course with Phase 2 trials results.
OBM +8.3% quarterly report.
BRU +16.3% awarded pre-FEED study Monday. The Viking strikes back.
CCP -30.5% US woes on debt ledger.
TYR -8.8% strategy day.
BAP -7.6% broker downgrades.
HUB -5.4% brokers cool.
HVN -2.7% retail woes.
RBL -0.8% burst.
WC8 -6.3% change in director’s interest.
Speculative Stock of the Day: NOX +19.8% mRNA vaccine enhancer shows inflammation reduction.

HEADLINES

RBA governor Michele Bullock highlighted challenges in cooling inflation, including sticky service prices and repeated global shocks. She expressed concerns that persistent high prices could impact inflation expectations.
The central bank has raised interest rates by 4% since May 2022 to control inflation. It is awaiting employment data and the third-quarter inflation report for future policy decisions.
China’s GDP rose 4.9% in July-September from the year earlier, data released by the National Bureau of Statistics showed.
Quarter on quarter, China’s GDP grew 1.3% in the third quarter, following revised second-quarter growth of 0.5%. Fixed asset investment in the first nine months of the year slightly disappointed as property investment tumbled 9.1% in the January-September period.
5.5% spike in retail sales in September from a year earlier exceeding market expectations.
China’s unemployment rate fell to a 22-month low of 5% in September from 5.2% in August.
Country Garden has remained silent as a grace period is ending for dollar-bond interest that if unpaid would mark its first-ever public default.
Russian President Vladimir Putin addressed a live audience at the third Belt and Road forum in Beijing.
Jordan cancels Biden summit after deadly explosion at Gaza hospital.
Elon Musk’s X to tet $1 per year subscription model to reduce bots.
Apple CEO Tim Cook makes surprise visit to China to watch “Honor of Kings,” a game developed by TiMi Studio created by Tencent.
European markets opening mixed, FTSE up on miners and energy stocks.