ASX 200 dropped 82 points to 7415 (-1.1%) in a perfect storm as major stocks all saw sellers appear. No lead-in from the US, but futures are pointing to a weaker start all the same. The ‘Three Amigos’ saw selling as Iron ore prices fell again in Asia, BHP off 1.4% and FMG copping a 2.2% loss. RIO reported production numbers and reaffirmed guidance, falling 1.3%. Lithium stocks mixed, PLS up 1.1% and IGO continued its own halving, falling 1.8%. Gold stocks also found willing sellers, EVN down 3.4% and NST falling 1.9%. Uranium stocks came to a halt, PDN off 1.5% and DYL up 1.0%. Oil and gas stocks also on the nose, WDS down 1.6% and STO off 1.8%, with coal stocks also easing. Banks saw some long overdue profit taking, CBA down 0.6% and WBC and NAB down 0.7-0.8%, with the Big Bank Basket down 0.7% to $192.54. Other financials slid, MQG off 0.8%. REITS eased, and industrials sold down. Retail under pressure, SUL down 2.6% and JBH off 1.4%, with LOV down 5.2%. Tech eased, with the All–Tech Index down 0.7%. Supermarkets are not quite so super as ACCC muscling up. WES down 1.0%, WOW off 1.5% and COL off 2.0%. 10-year yields bounced back to 4.15%, sending rate-sensitive stocks lower. In corporate news, DTL to beat profit guidance up 1.5%, HUB fell 2.1% on its FUA number, and we had RIO production numbers. On the economic front more pessimistic consumer sentiment numbers. In Asia, Japan down 0.6%, HK falling yet another 1.9%, and China down 0.7%. Dow Futures down 122 points. NASDAQ Futures down 81 points.

HIGHLIGHTS

• Winners: ERA, CBO, WGX, AQZ, WBT, RPL
• Losers: WC8, FCL, DVP, LOV, CXL, NXL, MGX
• Positive sectors: Nothing really.
• Negative sectors: Everything else.
• ASX 200 Hi 7488 Lo 7402. Big range, thin volume.
• Big Bank Basket: Lower at $192.54(0.7%)
• All-Tech Index: Down 0.9%
• Gold: Better at $3098
• Bitcoin: Settles higher at US$42726. The Super Bowl is coming in a month!
• 10-year yields higher at 4.14%
• AUD: Easier at 66.13c
• Asian markets: Japan down 0.7%, HK falling yet another 1.9% and China down 0.4%
• US Markets reopens. Dow Futures down122 Nasdaq down 80

MAJOR MOVERS

• ERA +20.3% uranium moves continue. Ranger the focus.Will it ever be mined again?
• CBO +5.3% squeezed higher. Low volume.
• LRS – unchanged – Brazil looking of interest to Chinese car companies.
• WGX +3.3% project drilling update.
• WBT +2.9% finding support.
• DRO +8.1% positive presentation.
• ZIP +9.2% good bounce off 50c.
• LOV -5.2% retail profit taking.
• SUL -2.6% broker downgrades.
• WC8 -12.9% lithium under pressure.
• CZR -14.5% starting to look interesting after fall.
• GL1 -9.5% becoming a substantial shareholder.
• Speculative Stock of the Day: Nothing on any volume.

• Winners: ERA, CBO, WGX, AQZ, WBT, RPL
• Losers: WC8, FCL, DVP, LOV, CXL, NXL, MGX

COMPANY NEWS

ECONOMIC AND OTHER HEADLINES

• Australia’s Consumer Sentiment index dropped 1.3% to 81 in January 2024 from 82.1 in December, marking nearly two years of pessimistic levels.

• Former President Donald Trump cruised to victory in the Iowa caucus. DeSantis beats Haley into second place. The other guy dropped out.

• China’s US$1.24 trillion sovereign wealth fund vowed to help with risk mitigation and market stabilisation in 2024.
• Chinese GDP likely increased 5.2% over all of last year, according to economists surveyed by Bloomberg.

• Germany was worst-performing major economy last year. BYD flooding Europe with EVs hurts.
• Greek government plans Athens airport IPO to sell 30% stake.
• Longer detours around the Cape of Good Hope in South Africa have pushed ocean freight rates by up to $10,000 per 40-foot container.
• The head of the IMF warned Monday that China needs structural reforms in order to avoid “a fairly significant decline in growth rates.”
• Davos continues and it’s all about AI.Crypto is so last year!
• “Succession’ and ‘The Bear’ have dominated the Emmys. Kieran Culkin, Sarah Snook and Matthew Macfadyen won acting awards.

And finally…..

I’m making a graph of my past relationships.

I have an ‘ex’-axis and a ‘why?’-axis.

Clarence

XXXXX