ASX 200 pulled back from intra-day highs to close up 61 points at 6900 (0.9%). Banks led the market higher, with CBA up 1.6%, NAB up 1.5% and the Big Bank Basket up to $173.54 (+1.7%). Fund managers also better, but MQG set to report tomorrow was flat. REITs soared on falling yields, GMG up 2.22% and GPT up 3.0% as 10-year yields fell to 4.80%. Healthcare also finding support from oversold levels, CSL up 1.3% and RMD rallying another 3.3%. Tech too, had a good day on lower rates, with XRO up 3.5% and WTC up 3.4% with the All–Tech Index rising 2.7%. Old skool platform stocks are in the green, with REA up 4.8% and CAR rising 2.3%. Industrials not so great except interest rate sensitive stocks, TCL up 1.0%, QAN up 2.6% and JBH up 0.9% with solid support for retailers. Utilities slipped back after ORG saw an increased offer from Brookfield and a rejection from AussieSuper again. Resources were mixed, gold miners slipping back as risk appetite increased, NEM down 1.3% and NST off 2.6%. Oil and gas stocks also slid lower, WDS off 2.5% and STO down 3.0%. Coal stocks better, and iron ore stocks still in demand, BHP up 0.4% and FMG rallying 1.7%. Lithium stocks saw a few buyers, nothing spectacular, PLS up 0.6% and LYC up 0.6%. In corporate news, CSR held its AGM talking of solid demand, SUN appointed a bank CEO, STO lost a court battle for Barossa project and A4N rose strongly on news of insto support for a capital raise. On the economic front, some lending numbers, but it’s all about the RBA next week. Asian markets mixed, Japan up 0.5%, HK up 1.0% and China down 0.1%. 10-year yields down to 4.80%.

HIGHLIGHTS

  • Winners: WC8, LRS, A$N, SYA, CMW, MGX, CXL
  • Losers: ORG, CHN, PPM, AMC, STO, NST, WDS
  • Positive sectors: Banks. Healthcare. REITs. Tech. Retail.
  • Negative sectors: Gold miners. Oil and gas. Utilities.
  • High 6928 Low 6852
  • Big Bank Basket: Strong rally to $173.54(+1.7%)
  • All-Tech index: Up 2.7%
  • Gold: Slips to $3090
  • Bitcoin: Higher at $35,538
  • Aussie Dollar:  Higher at 64.30c
  • 10-Year Yield: Lower at 4.80%
  • Asian markets stronger, Japan up 1%, HK up 1.3% and China up 0.1%.
  • US Futures: Dow down 45 Nasdaq down 23

MAJOR MOVERS

  • LRS +12.8% lithium bounce.
  • WC8 +13.3% continues to purr along after MIN buys at 85c.
  • CXL +6.7% support found.
  • MGX +7.1% iron ore pricing.
  • SEK +4.2% tech bounce.
  • SYA +8.3% new lithium hits in Québec.
  • A4N +9.0% $40m share placement.
  • NST -2.6% gold sell off.
  • ORG -6.6% gets increased offer but slides anyway.
  • CSR +0.7% warns on cost pressures.
  • CHN -5.1% profit taking.
  • STO -3.0% court stops Barossa gas project.
  • AMC -3.0% broker downgrades.
  • WDS -2.5% broker research.
  • SSR -15.2% 3Q results.
  • Speculative Stock of the Day: Bravura Solutions +16.7%. AGM presentation and guidance.

ECONOMIC NEWS

  • Lending Indicators In September 2023, new loan commitments (seasonally adjusted): rose 0.6% for housing
  • rose 2.7% for personal fixed-term loans
  • rose 10.5% for business construction (a typically volatile series) and fell 0.2% in trend terms
  • rose 4.8% for business purchase of property (a typically volatile series) and rose 0.9% in trend terms

HEADLINES

  • Chinese electric car companies Xpeng and Li Auto each delivered a record number of cars in October, according to company releases.
  • South Korea accelerated for the third straight month in October, with the CPI rising 3.8% year-on-year.
  • Hong Kong’s retail sales grew at their slowest pace since January, highlighting the impact of a global high interest rate environment.
  • Bankman-Fried’s lawyers make final appeal for acquittal in FTX trial.
  • CVC postpones plans for Amsterdam listing.
  • Disney moves to buy Comcast out of Hulu.
  • Double Line Capital CEO Jeffrey Gundlach believes interest rates are about to trend lower as the economy deteriorates further and tips into a recession next year.
  • Biden says there should be a humanitarian ‘pause’ in Gaza.
  • Apple tonight.

And finally….

A Harley biker is riding by the zoo in Taronga Park, Sydney when he sees a little girl leaning into the lion’s cage. 

Suddenly, the lion grabs her by the cuff of her jacket and tries to pull her inside to slaughter her, under the eyes of her screaming parents. 
The biker jumps off his Harley, runs to the cage and hits the lion square on the nose with a powerful punch.
Whimpering from the pain the lion jumps back letting go of the girl, and the biker brings her to her terrified parents who thank him endlessly. 
A reporter has watched the whole event. The reporter addressing the Harley rider says, ‘Sir, this was the most gallant and brave thing I’ve seen a man do in my whole life.’ 
The Harley rider replies, ‘Why, it was nothing, really, the lion was behind bars. I just saw this little kid in danger and acted as I felt right.’ 
The reporter says, ‘Well, I’ll make sure this won’t go unnoticed. I’m a journalist, and tomorrow’s paper will have this story on the front page…
So, what do you do for a living and what political affiliation do you have?’ 
The biker replies, ‘I’m an SAS soldier just returned from Afghanistan and a Liberal party supporter’ 
The journalist leaves.
The following morning the biker buys the paper to see news of his actions, and reads, on the front page:
  
SAS SOLDIER ASSAULTS AFRICAN IMMIGRANT AND STEALS HIS LUNCH 
  
That pretty much sums up the media’s approach to the news these days.

Clarence

XXX