The ASX 200 dropped 119 points to 8635 (-1.4%) as the rout in the US flowed into already nervous Australian equities. We saw our biggest weekly fall since March. Mind you only 1.5%, it just feels like more. Banks were the obvious casualties as the dividends are no longer in the stock prices, the Big Bank Basket fell to $273.58 (%), with ANZ unravelling the most, down 2.6%. MQG also suffered a 2.2% fall with other financials and wealth platforms seeing selling. HUB down 8.0% and XYZ falling 6.5%. GQG unchanged, but is not proving a great hedge against the tech drop. Insurers eased back too, QBE down 1.1% despite rising bond yields. Tech was the other big casualty, XRO continue to fall hard down another3.9 % with WTC cratering 4.6% as the All–Tech Index was crunched again, down 2.8%. Industrials were weaker across the board , ALL down 3.7%, TLS off 0.6% and BXB down 0.61.1%. REITs suffered on higher rate fears, GMG under pressure again.

In resources, some profit taking in the gold miners, but early losses saw some brave souls return to the fray. Lithium remains the place to be but for how long, PLS up 1.1% and LTR gaining 1.0%. Iron ore stocks were down but not as badly as banks. The Three Amigos losing around 1.3%.

In corporate news today, MYX in a trading halt pending a material update on the Cosette takeover. PYC bucked the downtrend with some good results on a drug trial. DRO recovered slightly from the director debacle, but it’s a long way back. MP1 fell 9.6% after its capital raising.

On the economic front, the ABS release details that Demetia is now the leading cause of death. 17,500 deaths in 2024. China’s steel production continued to slide in October.

Asian markets weaker with Japan down 1.7%, HK down 1.3% and China down 0.8%

HIGHLIGHTS

  • Winners: CXO, LIN, PYC, DRO
  • Losers: NVA, DTR, MP1, WBT, HUB
  • Positive Sectors: Lithium.
  • Negative Sectors:  Everything else.
  • ASX 200 Hi 8645   Lo 8612 Down 1.5% for the week.
  • Big Bank Basket: Down to $273.58 (-1.6%)
  • All-Tech Index: Down 2.8%
  • Gold: Higher at $6428
  • Bitcoin: Falls to US$97879
  • AUD: Steady at 65.31c.
  • Asian markets weak. Japan down 1.7%, China down 0.8% and HK off 1.3%.
  • 10-year yields higher at 4.43%

MARKET MOVERS

  • PYC +3.8% promising drug trial result.
  • CXO +5.3% results of AGM.
  • DRO +3.6% ‘dead cat bounce’.
  • HAV +8.8% notice of AGM
  • LKE +11.8% lithium rally.
  • WJL +9.7% solid bounce.
  • NVA -17.6% volatility continues
  • DTR -11.3% gains unwound.
  • MP1 -9.6% cap raise weighs.
  • WBT -8.6% chips fried.
  • HUB -8.0% CAT -7.8% high PE stocks hit hard.
  • SLX -7.6% uranium stocks under pressure.
  • LKY -10.5% robbed- appointment of Ian Stockton to the board.
  • RXL -16.5% placement.
  • Casualty of the Day:  NVA -17.6% volatility continues.
  • Speculative Stock of the Day: Nothing today. No surprise there.

ECONOMIC AND OTHER NEWS

  • China’s steel production continued to slide in October on softening domestic demand and deeper output cuts at mills. Crude industrial steel production dropped 12% last month from a year earlier to 72 million tons.
  • Chinese industrial production climbed 4.9% last month from a year earlier, down from 6.5% in September, and fixed-asset investment shrank 1.7% in the first 10 months of the year.
  • SMIC warned that a shortage of memory may constrain car and consumer electronics production in 2026.
  • BBC apologises to Trump for edit of speech but refuses to pay compensation.
  • ‘Big Short’ investor Michael Burry to close fund as he warns on valuations.
  • US announces new trade deals in attempt to cut costs for consumers.
  • SoftBank shares plunge over 8%, extending selloff into third day.

And finally….

Clarence

XXXX