ASX 200 powers to a 5-month high of 7378 up 120 points (+1.7%) as the Fed delivers in time for a very happy Xmas. A leap this morning on the open following the dot plots and the Q&A session. Bond yields tumbled with the Australian 10-year yield back to 4.12%. Financials, REITs rallied hard, the Big Bank Basket at $187.00(+1.1%), CBA leading the charge higher but MQG had a great day up 3.5% together with other financials. Insurers slid a little on lower yields, but REITs took off too. GMG up 3.0% and SCG up 3.9%. Industrials and tech doing well, TCL rallying another 1.4% on lower rates, TLS up 1.8%, and tech giants XRO and WTC all doing nicely. The All–Tech Index up 2.1%. Healthcare in a strong place, CSL up 1.6% and RMD up 1.9%. Resources played catch up, iron ore majors in demand. All-time highs across the board, RIO, FMG and BHP if you add back the WDS. Gold miners soared after a couple of down days. NST rebounding 8.1% and GMD up 5.1%. Lithium stocks were the stand out as a short squeeze and perhaps a change in sentiment dragged the buyers back in. PLS up 8.6%, and LTR rallying, with LRS the standout. Oil and gas doing ok on a slightly higher oil price, WDS up 0.5% and KAR up 1.6%. In corporate news, some takeover action in small caps, VHT up 41.3% and WSP under siege with a 57c offer. GMD bought some gold projects off Kin Mining. VEA got the nod to acquire the OTR group, AWC jumped 8.7% on WA approvals, PAN called in the administrator. On the economic front, unemployment rose slightly to 3.9% with an increase in 61500 jobs created. Asian markets mixed, Japan down 1.3%, China up 0.3% and HK bouncing 1.1%. Dow Futures up 108 points. NASDAQ Futures up 98 points. 

HIGHLIGHTS

• Winners: LRS, ADT, CHC, IGO, WBT, AKE, EMR
• Losers: NHF, MTS, ORA, QBE, GNE
• Positive sectors: Everything bar insurers.
• Negative sectors: Insurance.
• ASX 200 Hi 7380 Lo 7272
• Big Bank Basket: Better at $185.04(+1.1%)
• All-Tech Index: Up 2.1%
• Gold: Steady at $3026
• Bitcoin: Higher to US$42792
• 10-year yields drop to 4.13%
• AUD: Rallying hard to 67.10c
• Asian markets Japan down 0.9%, China up 0.3% and HK bouncing 1.1%.
• US futures: Dow futures up 108 Nasdaq up 98

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MAJOR MOVERS

• LRS +18.0% webinar released yet again.Did help.
• ADT +16.1% positive base metal bounce.
• CHC +11.8% REITs in demand.
• IGO +11.3% lithium bounce despite bearish research.
• AKE +10.0% short squeeze.
• WBT +10.5% tech rally.
• VHT +41.3% 115c bid.
• DLI +11.9% solid lithium bounce.
• WR1 +11.6% won today.
• TUA -1.7% reverses yesterday’s rise.
• QBE -2.6% bond yields fall.
• ORA -3.0% bearish update.
• ARU -20.0% capital raising.
• Speculative Stock of the Day: BAT +60.7% Tim Goyder and Stuart Tonkin buy-in. Already a three-bagger.

COMPANY NEWS

ECONOMIC AND OTHER HEADLINES

Local Jobs data today

In seasonally adjusted terms, in November 2023:

• unemployment rate increased to 3.9%.
• participation rate increased to 67.2%.
• employment increased to 14,257,500.
• employment to population ratio increased to 64.6%.

BOJ seen holding on Dec. 19, scrapping negative rate by April.

• China data due tomorrow expected to show the economy continues to splutter along. Industrial production is estimated to have risen 5.7% in November from a year prior.
• US House votes to approve impeachment inquiry into Joe Biden.
• Argentina’s left vows resistance as Javier Milei sets out sharp budget cuts.
• Developing countries paid a record $443.5 billion in 2022 to service their public debts as global interest rates surged, according to the World Bank.
• ECB and BoE tonight. No change expected.
• Rishi Sunak’s popularity sinks to new low as he battles MPs on Rwanda policy.
• Best performing stock market this year. Argentina up 49%. Think a peso devaluation helped!

And finally…..

I bought a new dictionary at the book store, but when I got home and opened it all the pages were blank.

I have no words.

Police say a man who held staff hostage in a bowling alley…

Could strike again !

Clarence

XXXX