The ASX 200 lost 76 points to 8883 (0.8%) as losses accelerated in the banks as the day wore on. The Big Bank Basket fell to $283.25 (-1.1%). ANZ bucked the trend as it unveiled its new strategy and suspended the buyback. It was up 3.3%. MQG slumped 4.0% and other financials also in the naughty corner, NWL down 4.0% and HUB dropping 5.6%. REITS pretty flat, Insurers slightly lower, SUN down 1.2%.  Industrials showed losses with QAN down 1.6%, SGH off 3.1% and ALL falling 2.5%. Retail eased, investors sought refuge in WOW and COL. Tech was hit hard, the All-Tech Index down 2.7% with WTC off another 2.5% and XRO continuing to slide, off 1.5%. REA fell 1.6% and ORG lost 1.6%.

In resources, gold and rare earths were the shining lights, NEM up 2.9% with NST gaining 1.3%. LYC pushed ever higher, ARU gained 18.3% and ILU up 2.3%. Copper stocks slipped, BHP down 0.8% and FMG fell 0.4%. Oil and gas stocks continued to fall, STO down 1.7% and WHC falling 0.9%. Uranium stocks lost a little.

In corporate news, SS1 jumped 18.1% on US news, QAN fell on the leaked data and TWE is having a serious hangover on US and China sales issues, down 15.0%. TOE jumped 38.5% on a takeover from IsoEnergy. For BHP it looks like some progress has been made on the Chinese pricing standoff.

On the economic front, Jim Chalmers made some sensible changes to superannuation. A super-sized backflip with pike!

Asian markets were weaker as expected on Tariff news, Chinese exports though are booming. Japan closed for Sports Day holiday China down 1.7% and HK off 3.0%.

10-year yields fell to 4.29%.

HIGHLIGHTS

  • Winners:  ARU, SRL, RRL, PNR, PDI, CYL, NVX
  • Losers: TWE, FML, 4DX, INR, PNV, NXL, WBT, VUL
  • Positive Sectors: Gold. Rare earths. Critical metals.
  • Negative Sectors: Tech. Banks. Industrials. Financials.
  • ASX 200 Hi 8932 Lo 8868.
  • Big Bank Basket: Falls to $283.25 (-1.1%)
  • All-Tech Index: Down 2.7%
  • Gold: flying to $6224
  • Bitcoin: improves to US$114800
  • AUD: falls to 65.24c.
  • In Asian markets – Japan closed for Sports Day. China down 1.8% and HK down 3.0%.
  • 10-year yields fell to 4.29%.
  • US futures – Dow up 389. Nasdaq up 406.
  • European markets set to open slightly firmer.  

MARKET MOVERS

  • ARU +18.3% rare earths push.
  • L1G +3.9% keeps on going.
  • SRL +7.5% good bounce with Scandium in focus.
  • ALK +5.1% gold and antimony.
  • PSQ +36.3% 220c cash offer.
  • BOC +36.8% really?
  • SGQ +17.4% Rinehart invests in cap raise.
  • SS1 +18.1% US talks.
  • ASM +30.0% rare earth exposure.
  • TOE +38.5% takeover.
  • TWE -15.0% removes guidance. US and China issues.
  • 4DX -8.6% profit taking.
  • INR -8.0% lithium stocks under pressure.
  • VUL -6.2% signs offtake agreement with Glencore.
  • PLT -9.2% unwinds.
  • VR1 -6.4% profit taking.
  • Speculative Stock of the Day: LMS +230% 100m plus copper sulphide mineralisation in hole 10.

ECONOMIC AND OTHER NEWS

  • Treasurer Jim Chalmers has backed down significantly on his plans to apply a 15 per cent earnings tax to superannuation balances over $3m. JACO – Jim always chickens out.
  • Chinese exports grew 8.3% in September in U.S. dollar terms from a year earlier, beating Reuters-polled economists’ estimates for a 7.1% rise and gathering pace again after slowing to a six-month low in August.
  • Imports jumped 7.4% last month from a year ago, sharply beating Reuters’ estimates for a 1.5% growth.
  • The Philippines accused Chinese maritime forces of using water cannon and ramming a Filipino vessel near the Philippine-occupied Thitu Island, calling the actions a “clear threat”.
  • Hamas to release hostages in Gaza conflict milestone.
  • Wall Street investment banking revenues poised to top $9bn.
  • Jefferies says First Brands losses can be absorbed.
  • Japan opposition in talks to challenge Takaichi after coalition collapse.

And finally…..

I rented a limo for $500, but it didn’t come with a driver. Can you believe that…all that money and nothing to chauffeur it!

Clarence

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