ASX 200 fell 7 points to close at 8103 (-0.1%). Pre-US trade resuming after the Labor Day holiday. Once again, the banks pushed up, and resources fell down. The Big Bank Basket rose to $245.06 (+1.0%). Other financials did well. MQG was up 1.3% on news that it has sold AirTrunk for $23.5bn. Insurers were solid, too. QBE up 0.8% and SUN better by 1.4%. REITs firmed, GPT up 0.6% with industrials slightly weaker, WOW, COL and WES went ex-dividend, CPU slid 1.0% and QAN down 1.9% on Cathy news of engine issues. Tech pushed on, WTC up 2.4% and XRO up 0.7% with the All–Tech Index up 0.5%. A different story as usual in the resource space, BHP lost 1.7% with RIO falling 1.7% and FMG dropping 2.6%, lithium stocks remain depressed, and MIN dived 8.5%. Gold miners were mixed as some bargain hunters stepped in, Energy stocks weakened, WDS down 0.2% and uranium stocks unless pressure again. In corporate news, EML rose 3.6% after completing its sale of Sentenial. On the economic front, the current account deficit widened to $10.7bn in the June quarter – well above forecasts of a shortfall of $5.9bn. GDP due tomorrow, economists are downgrading expectations on BoP numbers. Now 0.2% the number to look for. Asian markets mixed again, with Japan up 0.6%, China down 0.4% and HK down 0.5%. 10-year yields around 4.0%. Dow and NASDAQ Futures down 75 points each. 

HIGHLIGHTS

  • Winners: CTT, OCL, PGC, KLS, GDG, NAN, LOV
  • Losers: MIN, PYV, LTR, SMR, CU6, LYL, LRS
  • Positive sectors: Banks. Financials. Insurers. Healthcare. Tech
  • Negative sectors: Miners. Energy. Lithium.
  • ASX 200 Hi 8110 Lo 8074. Narrow range. Good rally off lows.
  • Big Bank Basket: Higher at $245.06 (1.0%)
  • All-Tech Index: Up 0.5%
  • Gold: Steady at $3,702
  • Bitcoin: Higher at US$59,189
  • 10-year yields steady at 4.0%
  • AUD: weaker to 67.40c
  • Asian markets: Japan off 0.3%, China up 0.2% and HK down 0.4%.
  • Dow Futures down 69 NASDAQ Futures down 72
  • European futures searching for direction at the open.

MAJOR MOVERS

  • CTT +9.6% crazy volatility.
  • KLS +5.8% change of director’s interest.
  • PGC +6.0% CFO resignation.
  • LOV +4.3% rally gathers pace.
  • BIO +14.3% Q1 Revenue guidance.
  • VYS +6.2% thin volume.
  • SMR -6.2% payment of contingent consideration to BHP.
  • PLS -3.2% lithium depressed.
  • MIN -8.5% UBS downgrades.
  • LTR -8.5% UBS research.
  • IGO -4.6% UBS downgrades.
  • LYL -5.7% resource exposure.
  • TTT -19.4% slides on low volume.
  • Speculative Stock of the Day: Golden Deep (GED) +164.3% 18.5% copper and 34.8% zinc!

COMPANIES

ECONOMIC AND OTHER NEWS

  • Australia’s current account balance fell by $4.4bn to a deficit of $10.7bn in the June quarter 2024 (seasonally adjusted, current prices), according to figures released today by the ABS. Exports of goods fell 4.4%, with lower prices for iron ore and coal driving the decrease. Imports of goods fell 0.6% driven by Capital goods, reflecting fewer imports of mining equipment. The quarterly fall in the terms of trade largely reflected a fall in export prices (-3.0%), with imports prices remaining unchanged.
  • Concern over housing costs hits record high across rich nations. UK house prices rise at fastest pace since late 2022.
  • UK to halt exports of some arms to Israel citing possible law breaches.
  • Harris opposes Nippon Steel’s $15bn bid for US Steel.
  • Cathay Pacific to inspect Airbus A350 fleet after ‘engine component failure’. All planes back flying by Saturday after checks.
  • The “housing market crash is still not over yet,” Haibin Zhu, chief China economist at JPMorgan told CNBC today.
  • Russia has again hinted that it is making changes to its official policy on the use of nuclear weapons, amid Ukraine’s continuing incursion into its Kursk border region. That is not good.

And finally….

Clarence

XXXX