ASX 200 reversed early gains on Chinese disappointment falling 29 to 8177 as resources stumbled and banks pushed higher. The Big Bank Basket rose to $233.26 (+0.3), Insurers were under pressure, QBE was down 2.4% on Hurricane exposure, and IAG was up 0.3%. Financials weaker, SOL down 0.6% and SQ2 off 1.7% with REITs under pressure. GMG the exception, up 0.6%. Industrials sidelined and weaker with XRO off 1.7% and WOW down 0.3%, travel stocks eased, FLT off 0.2%. WEB down 1.9% and GYG fell 2.6%. Resources saw a roller coaster today as Iron ore initially rose 3% plus in Singapore, only to shed gains and head lower with BHP succumbing down 2.4% and RIO off 0.2%. Lithium stocks fell hard, MIN down 4.0% and PLS down 3.2% as the shorts pounced. LTM off 2.5% as no details forthcoming. Oil and gas weaker in Asian trade, WDS off 1.3% and STO down 0.6%. Gold miners held firm. Uranium saw some fallout. In corporate news, slim pickings, IPL saw its CFO resign. NRW won a $360m mining contract with EVN. In economic news, RBA minutes see the board talking tough still. China came in underwhelming on latest stimulus pitch. Asian market very volatile still, HK off 5.1%, China up 5.2% and Japan down 1.5%. 10Y yields jump to 4.17%. Dow Futures down 30 points. NASDAQ Futures down 12 points. 

HIGHLIGHTS

• Winners: WAF, SRG, SHV, CCP, VAU, MAH, CBO
• Losers: BRN, CHN, IGO, FMG, SGR, LTR
• Positive sectors: Banks. Healthcare.
• Negative sectors: Iron ore. Oil and gas. Tech.
• ASX 200 Hi 8224 Lo 8165
• Iron ore down 2.5% in Singapore.
• Big Bank Basket: Up to $233.26
• All-Tech Index: Down 0.8%
• Gold: runs higher to $3,921
• Bitcoin: Steady at US$62678
• 10-year yields rise to 4.17%
• AUD: Lower at 67.37c
• Asian markets: HK off 5.6%, China up 6.1% and Japan down 1.2%.
• European markets expected to open around 0.5% weaker.

MAJOR MOVERS

• WAF +7.5% mining permit update.
• VAU +3.2% gold play.
• SHV +3.8% research.
• 4DX +7.6% finding some support.
• WJL +6.7% change in substantial shareholding.
• OCC +7.3% regulatory approvals to commence sales in Singapore.
• BRN -7.1% profit taking.
• CHN -5.6% poisoned today.
• SYR -% falling back to earth.
• MIN -4.0% Chinese disappointment.
• ARU -5.4% pops and drops.
• Speculative Stock of the Day: RIM +37.5% drilling confirms high-grade Co and Cu at Bald Hill.

COMPANIES

ECONOMIC AND OTHER NEWS

• RBA Minutes – members agreed that it was important to convey that the Board remained vigilant to upside risks to inflation. They also affirmed that monetary policy would need to be sufficiently restrictive until members were confident that inflation was moving sustainably towards the target range.

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• The RBA has conceded that the $188bn in cheap credit it extended to banks during the pandemic may have been excessive and not enough work was done to forecast the significant financial losses the central bank incurred.
• The World Bank expects China’s growth to weaken further in 2025. China’s expansion is set to drop to 4.3% next year from an estimated 4.8% in 2024, the lender said in its semi-annual economic outlook report.
• China may need 3 trillion yuan for property destocking in 80 large cities, according to UBS economists’ forecasts.
• Harris rules out bilateral talks with Putin on ending war in Ukraine.
• Samsung issues public apology as earnings disappoint. Operating profit for the quarter ending September is projected to be around 9.10 trillion won, marking a 274% surge from last year’s 2.43 trillion Korean won. However, the figure missed LSEG expectations.
• Foxconn chair says the artificial intelligence boom “still has some time to go” as AI models are becoming increasingly intelligent with each new iteration that comes out.
• Japan’s real wages in the world’s fourth-largest economy fell 0.6% in August from the same month a year earlier.

And finally…..

I’m recovering from
a terrible painting and decorating accident.

They have refered me to an emulsional support group

Someone tried to sell me a coffin
today.
I said that’s the last thing I need.

Clarence

XXXX