ASX 200 finishes the week down 38 points to 6977 (-0.6%). Quiet trade ahead of the weekend. Broad-based losses across most sectors, except iron ore and gold. Banks eased back with yields pushing higher, CBA down 0.8%, and NAB suffering from some downgrades falling 1.7%. The Big Bank Basket slipped to $176.11 (-1.1%). MQG eased 0.4%, and SUN down 1.6%. REITs mixed GMG, holding up with a 0.1% gain. Industrials eased, but no real damage, tech mixed, XRO continuing to fall on downgrades down 0.5% with WTC up 0.5%. The All-Tech Index down 0.9%. Iron ore stocks still holding very firm, our own magnificent three, BHP up 0.7% and FMG up 1.3%. Lithium stocks depressed again, PLS down another 5.9%, with MIN falling 2.6%. Gold miners also down and dirty, NEM continuing to fall, down 0.5%. NST slipped 1.9%. Oil and gas stocks down WDS off 2.2%, and coal eased. In corporate news, NWS fell % after 1Q results, REA off % after similar results. MIN fell 2.6% after it pounced on some of PNR’s assets, AVH rose 16.7% on quarterly report. In economic news, SOMP today from RBA, inflation adjustments. In Asian markets, Japan down 0.1%, China down 0.5%, and HK off 1.6%. 10-year yields 4.63%.

HIGHLIGHTS

  • Winners: NEU, RED, GWA, TUA, BRG
  • Losers: APM, CHN, SYA, WC8, CXO, PLS, LRS
  • Positive sectors: Iron ore.
  • Negative sectors: Banks. Insurers. Lithium. Gold. Oil. Industrials.
  • High 7018 Low 6964
  • Big Bank Basket: Lower at $176.11(-1.0%)
  • All-Tech index: Down 0.7%.
  • Gold: Higher at $3079
  • Bitcoin: Higher at $36.707
  • Aussie Dollar:  Down to 63.57c
  • 10-Year Yield: Back to 4.62%
  • In Asian markets, Japan down 0.7%, China down 0.7% and HK off 1.6%.
  • US Futures: Dow futures up 2 Nasdaq down 13.

MAJOR MOVERS

  • NEU +10.0% kicks higher again.
  • RED +4.7% punters back.
  • AVH +16.7% 3Q results.
  • PNR +23.1% MIN makes another move.
  • IVZ +4.7% anticipation builds.
  • SXL -2.6% CAT on the prowl.
  • APM -20.7% AGM address.
  • SYA -6.9% volatility continues.
  • CHN -7.4% Gone to Gonneville.
  • RPL -2.4% thin.
  • CXO -6.4% lithium slides again.
  • WC8 -6.4% placement weighs.
  • LRS -5.9% slips a little.
  • MNS -39.5% more debt woes
  • 5EA -4.2% recapitalises pre-first production.
  • AIS -3.0% base metals under pressure.
  • Speculative Stock of the Day: TG1 +140.7% on getting ready to drill close to Delta Lithium (DLI) – high concentrations of lithium and caesium in three locations from historical soil samples on one of their gold projects in WA.

ECONOMIC HEADLINES

RBA Statement of Monetary Policy (SOMP)

  • Nudges up its inflation forecast over the next two years. Headline inflation is expected to slow 4.5% by the end of this year, up from the previous forecast of 3.9%, and remain sticky in 2024, before easing back to 3% by mid-2025.
  • Growth rate is expected to climb 1.6% by year-end, from 0.9% previously projected, and steadily rise to 2.4% by December 2025. Click here for more
  • Goldman Sachs sees ‘clear deficit’ of iron ore for the rest of the year.

HEADLINES

  • China’s largest chipmaker SMIC on Thursday posted a 80% profit drop as semiconductor woes persist.
  • Chinese startup Li Auto sold more cars than Tesla’s China business did in October.
  • Ransomware attack on ICBC disrupts trades in US Treasury market.
  • Nvidia develops AI chips for China in latest bid to avoid US restrictions.
  • Portugal to hold snap election in March after resignation of PM.
  • Biden courts union votes in trip to Midwest car plant.
  • Overdue commercial property loans hit 10-year high at US banks.

And finally…..

Clarence

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