ASX 200 fell 20 points to 6977 (0.3%) after the RBA raised rates as expected by 25bps. Slight rally after the RBA decision and Melbourne Cup. Banks were soft, WBC down 2.7% and ANZ off 1.1% with the Big Bank Basket at $175.44 (-0.9%). MQG down 1.5% under pressure on downgrades across the board, insurers eased, QBE down 0.9% and SUN off 2.1%. REITs mixed, GMG unchanged and GPT up 0.5% with SCG off 1.2%. Tech stocks in demand with WTC up 3.6% and XRO rallying another 1.1%. The All –Tech Index up 0.9%. Industrials firm TLS up 0.3%, TCL up 0.3% and ORG putting on 1.2% as media reports plans in the wind. Healthcare better again, CSL gave up early gains to close up slightly, COH up 1.23%, RMD down 0.5%. Resources were again weaker, lithium stocks slid, PLS down 3.7% and IGO off 0.6%. Gold miners flat, oil and gas eased and coal down again, WHC off 3.0%. Iron ore slightly higher with RIO going well up 0.3%. In corporate news, all quiet as Victoria had a holiday and the Cup took centre stage. GQG fell 1.8% on its latest FUM numbers. On the economic front, RBA raised rates. Asian markets fell Japan down 1.0%, HK down 1.5% and China down 0.4%. Chinese data disappoints. 10-year yields around 4.72%.

MAJOR MOVERS

  • HLS +5.4% kicks higher.
  • WBT +3.8% volatility continues.
  • SGM +2.8% director’s interest
  • IMU +26.9% MAST study update.
  • IVZ +7.5% cleansing notice.
  • TG6 +13.0% kicks again.
  • CHN -5.5% Gonneville metallurgy update.
  • LTR -3.9% slipping again.
  • AKE -4.4% lithium under pressure.
  • SGR -0.9% sale of Sheraton Gold Coast.
  • Speculative Stock of the Day: Nickel Search (NIS) +25.0% good volume after an ASX please explain.  Schulz defence.

COMPANY NEWS

ECONOMIC HEADLINES

RBA raises rate by 25bps as expected. Slight dovish tone. AUD falls, ASX steady after small rally.

  • CPI expected to be at top of 2%-3% target range in 2025
  • Progress in lower inflation seems slower than thought previously
  • Inflation still too high, proving more persistent than expected
  • Medium-term inflation expectations consistent with target
  • Wages growth still consistent with inflation target
  • Further rate hikes will depend on data assessment

HEADLINES

  • China’s exports fell by 6.4% year-on-year in October in U.S. dollar terms.
  • China’s imports unexpectedly rose by 3%. China’s imports from the U.S. were down by 3.7% in October versus the year ago
  • WeWork files for bankruptcy.
  • OpenAI set to launch store as ChatGPT reaches 100mn users.
  • Biden presses Netanyahu for ‘tactical pause’ in Israel-Hamas war.

And finally….

Clarence

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