ASX 200 gives back 93 points, back down to 7586 (+1.2%) on US FOMC news and profit-taking after an end-of-month rally sent stocks to all-time highs. Banks that have led the market higher taking a hit, with the Big Bank Basket down to $196.69 (-2.4%). CBA dropped 2.9%, and NAB down 2.2%, the most targeted. Other financials also suffering, MQG dropping 1.2% with GQG off 1.3%. Insurers were flat, with REITs slipping as GMG fell 0.7% and VCX down 2.4%. Industrials were weaker across the board as expected, TCL down 1.5%, WOW fell 0.6%, and healthcare in trouble, CSL down 1.6%. Tech also came under pressure as WTC fell 1.4% and XRO off 1.3%. The All–Tech Index down 1.2%. Resources continued to be unloved, the ‘Three Amigos’ saw selling, BHP down 0.3% with FMG off 1.3%, lithium remains depressed as BoA cut forecasts. MIN down 2.6%, PLS down 2.5% and LYC falling 3.4%. Gold miners eased except NST up 1.7%. Base metal stocks continue to fall, IGO down 4.2%. Oil and gas stocks sold off slightly, WDS down 0.5% and STO falling 1.2%. In corporate news, S32 served a royalty claim on IGO, never rains eh? NUF warned of challenging times. Been a while since we have heard that. SQ2 prepared to cut jobs falling 2.3%. On the economic front, building approvals disappointed and Chinese factory activity expanded. In Asian markets the Hang Seng is up 1.3%, the Shanghai Composite +0.1%, and the Japanese TOPIX is down 0.6%. Dow Futures up 46 points. NASDAQ Futures up 70 points.

HIGHLIGHTS

  • Winners: CCP, TAH, RED, PPM, A2M, AX1, DMP
  • Losers: EMR, ESG, A4N, RRL, LOT, AWC, IGO
  • Positive sectors: Insurers.
  • Negative sectors: Everything else.
  • ASX 200 Hi 7674 Lo 7580
  • Big Bank Basket: Sold down heavily to $196.69 (-2.4%)
  • All-Tech Index: Down 1.2%.
  • Gold: Better at $3116
  • Bitcoin: Settles a little lower at US$41990
  • 10-year eases to 4.00%
  • AUD: Lower at 65.68c
  • Asian markets: Japan down 0.9%, HK up 1.4%. China up 0.7%
  • Dow Futures up 50 Nasdaq up 73

MAJOR MOVERS

  • CCP +5.6% broker upgrades.
  • TAH +5.0% gaming stocks seen as defensive.
  • DMP +2.4% bargain hunters. Voucher perhaps?
  • HZR +13.3% success at CDP.
  • OPT +1.1% continuing higher.
  • SHV +6.5% defensive.
  • EMR -8.4% shine rubs off post quarterly.
  • LTM -3.5% lithium depressed.
  • IGO -4.2% stuffed.
  • LOT -5.5% research report upgrades.
  • Speculative Stock of the Day: Red Metal (RDM) +35.4% Half decent volume on a positive announcement from its new Sybella REI discovery near Mt Isa.

COMPANY NEWS

ECONOMIC AND OTHER HEADLINES

  • The Export Price Index rose 5.6% in the December quarter 2023, and fell 4.8% during the year, according to data released today by the Australian Bureau of Statistics (ABS).
  • Building approvals in Australia

The December 2023 seasonally adjusted estimate:

  • Total dwellings approved fell 9.5%, to 13,085.
  • Private sector houses fell 0.5%, to 8,416, while private sector dwellings excluding houses fell 25.3%, to 4,354.
  • The value of new residential building fell 3.8%, to $6.03b.
  • The value of non-residential building fell 10.6%, to $4.32b.

A private gauge of China’s factory activity expanded for a third month in January, contrasting with weakness in official data.

  • Sam Bankman-Fried plans to repay FTX customers in full.
  • Japanese data showed the country exported 5.97m vehicles last year, more than the 5.22m vehicle exports that China customs data reported.
  • More than 70% of China’s car exports in 2023 were of gasoline-powered vehicles.
  • Mexico was the second-largest destination for Chinese cars after Russia.
  • China’s new energy vehicle penetration reached 40% of new passenger car sales toward the end of 2023.
  • KKR raises record $6.4bn for Asia fund in infrastructure rush
  • South Korean exports surge on chip sales and China shipments.
  • Betting group Flutter proposes moving listing from UK to New York.
  • ESPN to air Pickleball Slam 2!

And finally…

To clear up the Moody Blues lyric,does anyone know what the knights in white sat in?

Clarence

XXX