The ASX 200 falls 28 points to 6949 (0.4%) in a quiet start to a big week. ANZ results dominated with a small sell-off after missing some targets and dividend franking levels. The Big Bank Basket dropped to $175.71(0.2%) with ANZ down 3.0%. The other three held firm, MQG slid 2.6% as it went ex-dividend. Other financials slipped, GQG off 0.4% and PAC down 6.3% on a takeover update. Industrials drifted lower, REA down 2.1%, XRO slipping 1.4% and QAN lower by 1.1%. Healthcare little changed, CSL unchanged and RMD off 0.1%. In resources, iron ore still the place to be.. just. BHP up 0.3% and lithium once again in the toilet, PLS down 0.9%, IGO off 1.8% and AKE tumbling 3.1%. Gold stocks also in trouble, with NST off 2.6% and EVN down 1.6%. Oil and gas easing back too. In corporate news, ELD ran hard on results up 18.3% and a squeeze with BLD up 5.1% on a decent upgrade. 4DX had a great day on US reimbursement news up 70.7%. TPG fell 11.7% as the Vocus deal fell apart. ORG declares a special dividend, if Brookfield deal goes through. In economic news, Marion Kohler (RBA), said that the “next stage in bringing inflation back to target is likely to be more drawn out than the first”. Asian markets flat, Japan unchanged, HK down 0.2% and China off 0.1%. 10-year yields up slightly to 4.68%. European markets set to open weaker. Oil down 0.9% in Asia.

HIGHLIGHTS

  • Winners: ELD, IMU, GRR, TUA, BLD, TPW
  • Losers: APM, TPG, PAC, SYR, WBT, FCL
  • Positive sectors: Utilities
  • Negative sectors: Pretty much everything else.
  • High 6984 Low 6949 Closed on lows
  • Iron ore futures higher.
  • Big Bank Basket: Lower at $175.71(-0.2%)
  • All-Tech index: Unchanged.
  • Gold: Lower at $3041
  • Bitcoin: Higher at $36975
  • Aussie Dollar:  Steady at 63.63c
  • 10-Year Yield: Back up to 4.67%
  • In Asian markets, Japan unchanged, HK down 0.1% and China off 0.5%.
  • US Futures: Dow futures down 110 Nasdaq down 70

MAJOR MOVERS

  • ELD +18.3% upside surprise and short squeeze.
  • GRR +7.5% iron ore strength.
  • BLD +5.1% upgrades guidance.
  • TPW +4.1% buyback notification.
  • ORG +1.5% special dividend if Brrookfield are lucky.
  • AGI +12.9% media clarification
  • TPG -11.7% let’s call the whole thing off.
  • APM -12.5% broker downgrades.
  • CHN -4.0% not the ‘brew that is true’.
  • PAC -6.3% stalemate it seems.
  • LRS -4.2% lithium under pressure.
  • Speculative Stock of the Day: 4DX +70.7% on CMS approves reimbursement for 4D Medical scans.Honorable mention to TG6 +21.4% SSOTD last week. Expanded lithium soil samples at Lake Johnston.

COMPANY NEWS

ECONOMIC HEADLINES

  • The RBA has warned of a prolonged and “bumpy” campaign to reduce inflation. The bank’s preferred measure of underlying inflation, known as the trimmed mean which strips out the most volatile prices, was forecast at 4.5% by the end of 2023, up from 3.9% previously forecast in August.
  • DP World operations at ports across Australia are slowly resuming after a cyberattack forced a nationwide closure.
  • Xiaomi said it sold more than 22.4bn yuan (US$3.11bn) worth of products on platforms such as Alibaba’s Tmall and Taobao, JD.com, Pinduoduo and Douyin.
  • Alibaba and JD.com declined for a second-straight year
  • Japanese PPI rose 0.8% from a year prior, slowing for a 10th month.
  • TSMC climbed its most in almost 6 months, underlining expectations the global chip market is recovering gradually from Covid-era troughs.
  • India considers slashing EV tariffs to lure Tesla.
  • Only 14% of US voters say Joe Biden has made them better off.
  • Carmakers step up EV discounts in bid to stem global demand slowdown.

And finally….

Just helped my friend who’s budgie has a broken leg. We made a splint using a Swan Vesta matchstick! When he tried to walk you should have seen his little face light up!

In hindsight we should have removed the sandpaper from the bottom of his cage first

Clarence

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