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ASX 200 fell 11 points to 8142 (-0.1%) on a big day of divergence. The great rotation kicked in with resources doing very well following the PBoC firing its ‘bazooka’ and the banks fell after the RBA held rates unchanged for the same reason as last time. The Big Bank Basket fell to $240.49 (-2.8%) as CBA dropped 3.0% and NAB fell 3.0%. Other financials held, with MQG up 0.9% and CGF up 1.3%. Insurers eased back slightly, SUN down 1.5%. REITs steady as GMG rose 1.1% and SGP up 1.0%. Industrials were mixed again, WOW and COL on the nose, falling around 3% on ACCC concerns. WES off 0.7% and ALL rallied 2.1% as LNW fell 18.4% on a Nevada court ruling. Tech mixed, the All Tech Index up 0.4%. QAN up 1.0% heading for an all-time high! It was a better picture in resources, following the PBoC move, BHP rallied 3.3% with RIO up 3.7% and FMG trailing up only 1.8%. Lithium miners were squeezed higher, PLS up 4.7% and MIN up 6.5%. S32 had a good day up 4.1% with BSL up 1.2%. Gold miners were weaker, EVN up 1.4% the exception. Uranium stocks glowing again today as shorts continue to cover on Microsoft’s move to shore up power. DYL up 10.6% and PDN up 10.1%. Oil and gas pushed slightly higher. In corporate news, CTT had their accounts signed off by the auditor and raced 79% ahead! In economic news, RBA and PBoC hogged the limelight. Asian markets firmed, Japan up 0.5%, HK up 3.5% and China up 3.8%. 10Y yields steady at 3.90% on RBA. 

HIGHLIGHTS

  • Winners:  CTT, TUA, DYL, PDN, BOE, SXG, SLX, FBU
  • Losers: LNW, TAH, MYR, PNR, MAH, ALX
  • Positive sectors: Iron ore. Uranium. Lithium. Base metals.
  • Negative sectors: Banks. Supermarkets.
  • ASX 200 Hi 8173 Lo 8111
  • Big Bank Basket: crushed to $240.49 down 2.8%
  • All-Tech Index: Up 0.4%
  • Gold: steady at $3,848
  • Bitcoin: lower at US$63113
  • 10-year yields lower at 3.89%
  • AUD: better at 68.23c
  • Asian markets: Japan up 0.8%, HK up 4% and China up 3.8%.
  • Dow Futures down 24 NASDAQ Futures up 25

MAJOR MOVERS

  • CTT +79.0% accountants sign off.
  • BOE +10.0% PDN +10.1% DYL +10.6% uranium moves.
  • TUA +14.0% trading update
  • SLX +7.8% uranium
  • SXG +10.0% kicks higher.
  • PLS +4.7% short squeeze.
  • RPL +3.2% ZIP holding?
  • FEX +8.2% iron ore leverage.
  • LOT +18.8% uranium.
  • LTR +7.1% roaring ahead.
  • ARR +15.7% funding package.
  • AIS +15.0% copper play.
  • FBU +7.7% capital raising.
  • JLG +5.3% acquisition seen as positive.
  • LNW -18.4% Burnt by the Dragon – Nevada court case negative.
  • TAH -5.4% change of interest.
  • SXE -4.0% ex-dividend.
  • APX -3.8% profit taking.
  • LRV -4.1% change in substantial holding.
  • Speculative Stock of the Day: E25 +67.4% good volume too. HPMSM project selected for US$166m DoE grant.

COMPANIES

ECONOMIC AND OTHER NEWS

RBA leaves rates on hold.

  • Current forecasts do not see inflation returning sustainably to target until 2026.
  • Policy will need to be sufficiently restrictive until the Board is confident that inflation is moving sustainably towards the target range.
  • Will continue to rely upon the data and the evolving assessment of risks to guide its decisions.
  • China fired the bazooka. Lowering borrowing costs on as much as $5.3 trillion in mortgages and easing rules for second-home purchases.
  • China will allow funds and brokers to tap the central bank’s funding to buy stocks.
  • The reserve requirement ratio will be lowered by 0.5%. That will unleash 1 trillion yuan ($US142bn) in liquidity, Pan said. China may also cut the RRR further this year by another 0.25 to 0.5% at an appropriate time, he added.
  • France’s borrowing costs converge with Spain as budget concerns grow.
  • US prepares to sue Visa for alleged anti-competitive behaviour.
  • US election merchandise sellers hit by flood of cheap Chinese competition.
  • Rio Tinto steps up campaign to win over public for lithium mine in Serbia.
  • European markets set for mixed open on growth concerns.

And finally…..

Clarence

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