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ASX 200 fell 65 points to 7972 (+0.8%) off its lows in quiet nervous trade. Dow futures slightly higher on the Trump speech. 90 minutes and talking unity. Red across the screens, banks gave back some recent gains, with the Big Bank Basket down to $226.80 (-0.9%). CBA fell 0.8%, and ANZ under pressure on the recent scandal, falling 1.2%, insurers slid, and REITs in the doghouse for a change. SGP down 2.0%, and SCG off 0.9%. Industrials were weaker but no great issues, WES off 0.8%, and WOW and COL slid slightly. ALL bucked the trend up 1.0%, with tech relatively stable. The All–Tech Index %. Resources once again the problem child, no real stimulus or plan from the Chinese Plenum. BHP down 2.1%, and RIO dropping 1.7%. Lithium stocks steady as gold miners slid on profit taking and some downgrades for EVN down 2.2%. Oil and gas stocks slid and uranium again under pressure. In corporate news, LIC finished off a week it would rather forget withdrawing forward guidance following ABC reports earlier this week and fell 13.9%. WBC had a small win with APRA, and WHC said that inflation was ‘rife’. Unit costs rising 11% in the last year. On the economic front, nothing today, the government announced the sale of $10bn in 11-year bonds next week. Asian markets mixed again, HK down 1.9%, Japan slightly weaker, and China of 0.2%. 10Y yields rose to 4.29%. There appears to be a serious Microsoft outage taking place this afternoon too.

HIGHLIGHTS

  • Winners: DRO, ABB, MCY, MSB, NWH, FCL, AD8
  • Losers:  LIC, BMN, ZIP, MP1, STX, PYC, SQ2.
  • Positive sectors: Gaming.
  • Negative sectors: Everything else.
  • ASX 200 Hi 8014 Lo 7924
  • Big Bank Basket: Lower at $226.80 (-0.9%)
  • All-Tech Index: Down 0.2%
  • Gold: Falls hard to $3616
  • Bitcoin: Eases to US$64251
  • 10-year yields rises to 4.29%
  • AUD: steady at 67.00c.
  • Asian markets mixed again, HK down 2%, Japan slightly weaker and China unchanged
  • ECB Day Today. European markets set for a slightly positive start.
  • Dow futures up 31 NASDAQ Futures up 70

MAJOR MOVERS

  • DRO +13.3% solid bounce.
  • ABB +5.4% book squaring after ‘Buddy’ falls.
  • AD8 +5.4% picking up a little.
  • DHG +2.3% defensive perhaps.
  • DXB +6.7% kicks higher again.
  • FND +6.4% presentation.
  • MHJ +9.4% market update.
  • EOS +4.6% kicks higher.
  • UNI +5.3% trading update.
  • LIC -13.9% withdraws guidance.
  • ZIP -5.0% a little profit taking.
  • CTT -3.9% readjusting downwards.
  • BMN -5.3% uranium slipping.
  • SQ2 -4.3% follows US tech down.
  • QGL 14.9-% reverses yesterday’s gain.
  • EQR -10.2% called in a sell on The Call.
  • Speculative Stock of the Day: Flynn Gold (FG1) +23.1% New High-Grade gold discovery at Golden Ridge Tasmania.

COMPANIES

ECONOMIC AND OTHER HEADLINES

  • The government’s borrowing authority, the Australian Office of Financial Management, says it will be issuing a new $10bn 11-year bond next week.
  • Broker Shaw and Partners has called gold to extend its bull run to top $US3000 ($4480) an ounce in 2025.
  • Trump talks for 92 minutes. Longest acceptance speech in history. US futures rally slightly. Biden watching?
  • Trump pledges tax cuts, trade wars and border wars. ‘Drill, baby, drill’ for oil companies.
  • Netflix earnings surge on boost from Baby Reindeer and Bridgerton.
  • Chinese third Plenum offers few details. Seems a non-event.
  • A controversy over cooking oil in China has prompted locals to take matters into their own hands. Consumers are now making their own oils.
  • Over the past 12 months, wealthy individuals in Singapore seem to be favouring discreet over more overt expressions of wealth. No more Ferraris or $100,000 Single Malt.
  • TSMC said that demand remains high and supply remains constrained for high-end AI chips, which TSMC manufactures for Nvidia.
  • OpenAI and Broadcom in talks about developing a new AI chip.
  • European markets expected to open slightly weaker.

And finally….Vale Bob Newhart….https://www.youtube.com/watch?v=hGZ3oVi1sUs

Clarence

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