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ASX 200 rose 27 points with a late surge to 8226 (+0.9%) in an interesting reaction to a soaring US market. Resources actually held up with BHP up 0.9% and FMG up 3.3%. Lithium stocks also better led by PLS up 3.4%. MIN up another 3.3% despite the ASIC inquiry becoming official. Gold stocks were in trouble as stop losses kicked in, NST down 6.3% with EVN off 6.5%. Oil and gas stocks marched ahead, WDS up 3.2% and STO up 2.4%. Uranium losses were modest. Banks firmed at the close, NAB flat on results, WBC down 2.3% as it went XD. The Big Bank Basket up to $249.81 (+0.6%). Insurers popped higher, QBE at 4.8% and IAG up 2.8% on higher yields. MQG rallied 1.6% as US Investment banks soared on more M&A possibilities. REITs slid as yields rose. GMG dropped 2.4% despite broker upgrades. Healthcare eased, RMD down 2.2% and CSL off 0.8%. Industrials mixed as investors assess the landscape. WES off 0.1%, JBH down 0.9% and SVW up 2.7%. WTC slightly firmer, up 2.0%. The All–Tech Index up 0.9%. In corporate news, SIG got the right prescription from the ACCC on the Chemist Warehouse, rising 24.9%, NEC got hit with a protest vote and NHF was up 1.9% after a trading update. In economic news, RBA chief made some comments on tariffs having ‘little effect’ on our economy. Chinese export data came in much better than forecast. Asian markets were little changed, HK up 1.2%, China up 0.9% and Japan up 1.1%. An uneasy calm. 10Y yields at 4.64%. Dow and NASDAQ Futures up 91 and 23 points respectively.

HIGHLIGHTS

  • Winners: SIG, PGC, NEU, CPU, JLG, BSL, WOR
  • Losers: CYL, CRO, SPR, CHN, RSG, INR
  • Positive Sectors: Banks. Insurers. Financials. Tech. Iron ore.     
  • Negative sectors: Gold miners. REITs. Healthcare.
  • ASX 200 Hi 8231 Lo 8150
  • Big Bank Basket: Up to close to ATH at $249.81
  • All-Tech Index: Up 0.9%
  • Gold: Falls to $4013
  • Bitcoin: Steady at US$74795
  • 10-year yields higher at 4.64%.
  • AUD: Steady at 66.20c
  • Asian markets: HK up 1.2%, China up 0.7% and Japan down 0.3%. %.
  • Dow Futures up 99 Nasdaq up 26 – Fed in focus.

MARKET MOVERS

  • SIG +24.9% ACCC says yes.
  • NEU +8.5% Daybue sales in US from Acacia.
  • JLG +5.6% US exposure.
  • PLS +3.4% short covering.
  • GLB +9.8% tiny volume.
  • WBT +6.2% recent company visit.
  • JMS +3.1% WA Macquarie forum.
  • SPR -17.3% drilling underwhelms together with bullion.
  • CHN -11.0% commodity sell-off.
  • DRO -11.0% give peace a chance?
  • CYL -18.2% no news is bad news.
  • IMB -9.0% capital raise fails.
  • RDN -11.4% drilling update.
  • LRV -10.9% cleansing notice.
  • Speculative Stock of the Day: QHL +94.9% takeover approach from ADSAM at 40c.

COMPANIES

ECONOMIC AND OTHER NEWS

  • RBA issues a warning. Ms Bullock says initial feelings on tariffs may not have much effect on us! “If he does some more extreme things, maybe it does,” she said.
  • RBA assistant governor Christopher Kent said any decision by the Trump administration to impose large tariffs on China “may have an adverse effect” on Australia.
  • The Reserve Bank of Australia has appointed Dr Meredith Beechey Österholm to the newly created role of head of monetary policy strategy.
  • NAB arrears had jumped to 1.39% of all lending, worth roughly $10bn, as of September 30. This is the highest point since 2020, and up 26bps from 1.13% on the previous year.
  • Fed expected to cut by 25bps tonight. Market pricing currently favours another 25bps cut in December, followed by a January pause then multiple reductions through 2025.
  • Since commencing the effort in June 2022, the Fed has shaved nearly $2 trillion off its holdings in Treasurys and mortgage-backed securities.
  • Bank of England (BoE) today too. Rate cut on the cards.
  • Chinese exports rose by 12.7% in October from a year ago in U.S. dollar terms, while imports declined by 2.3%, customs data showed.
  • Imports, however, fell by a more-than-expected 2.3% in October. That compares with a modest growth of 0.3% in September and 0.5% in August.
  • German Chancellor Olaf Scholz calls a snap election for March! Fires finance chief. German chancellors don’t have the power to call an early election apparently, which lies with the federal president.
  • Irish PM Harris plans to hold general election on November 29. To be sure, to be sure.

And finally…..

Clarence

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