The ASX 200 wandered around again today, waiting for the Fed. The ASX 200 closed down 7 points to 8579 (0.1%). Banks eased back slightly, CBA down 0.5% and the Big Bank Basket fell to $267.79 (0.4%). MQG sliding another 0.7% again with other financials easier. Insurers came back to earth with QBE down 0.4% and IAG off 1.0%. Industrials were flat, retailers fell, APE down 2.3% and JBH off 2.3% with TPW continuing to slide, off another 3.0%. WES was a bright spot up 0.7%, maybe lithium exposure! Healthcare eased back too, CSL down 0.1% and COH off 2.5%. Tech fell yet again, WTC down 1.9% and XRO sliding further, TNE off another 1.3%. Interest rate sensitive stocks under pressure. QAN down 0.8% and TCL off 1.3%.

In resources, iron ore stocks picked up, BHP up 0.5% and FMG up another 0.9%. Gold miners up as RMS announced a $250m buyback. NST up 5.1% and EVN up 4.5%. Silver stocks also having a good run. Oil and gas fell and uranium stocks rose slightly.

In corporate news, SBM up 10.9%, it secured a strategic partner and funding for Simberi, DRO popped 16.2% on a LW article. 4DX jumped 6.0% on a new order in the US. GQG unchanged on FUM data.

On the economic front, we had Chinese CPI slightly higher than expected.

Meanwhile in Asia, Japan down 0.5%, HK down 0.6% and China down 0.8%.

10-year yields higher at 4.80%.

US Futures – Dow down 10 points and Nasdaq down 5.

HIGHLIGHTS

  • Winners: DRO, SBM, LRV, KCN, ELV, ALK, SRL
  • Losers: RWC, GNP, ILU, PME, ARU, MYR, LFG
  • Positive Sectors: Iron ore. Gold and silver miners. Lithium. Supermarkets.
  • Negative Sectors: Tech. Retail. REITs.
  • ASX 200 Hi 8611 Lo 8562. Waiting for the Fed.
  • Big Bank Basket: Lower at $267.79 (-0.4%)
  • All-Tech Index: Down 1.4%.
  • Gold: Rises to $6335
  • Bitcoin: Rises to US$92517
  • AUD: Steady at 66.40c.
  • Asian markets, Japan up 0.2%, HK down 0.8% and China down 0.1%.
  • 10-year yields are higher at 4.80%.

MARKET MOVERS

  • DRO +16.2% solid bounce on Livewire article.
  • 4DX +6.0% new order. Maybe Blue Monday?
  • LRV +8.8% cleansing statement.
  • KCN +7.3% gold exposure.
  • ELV +7.1% lithium exposure.
  • RMS +5.6% buyback announced.
  • IVR +16.2% silver. Hi Ho.
  • ASL +17.1% silver play.
  • XRF +14.1% Livewire article.
  • HCH +7.9% near surface high grade Cu-Au core at La Verde.
  • ARU -3.9% capital raising weighs.
  • ILU -4.6% rare earths under pressure.
  • PME -4.1% slipping lower.
  • RPL -2.9% no reason.
  • TPW -3.0% slide continues. Buyback update.
  • RAC -6.8% presentation.
  • FDV -13.0% trading update.
  • EUR -13.2% CRML update.
  • CGS -12.0% business update.
  • TLG -8.0% placement.
  • Speculative Stock of the Day: LRM +50.0% Trading halt – Exploration results from Cameroon expected.

ECONOMIC AND OTHER NEWS

  • Fed meeting concludes tonight. Dot plots to be updated too.
  • The rate-setting FOMC is split between members who favour cuts to head off further weakness in the labour market against those who think easing has gone far enough and threatens to aggravate inflation.
  • The current resurgence of “false heat” in iron ore prices is the result of speculative trading activity, CMRG warned in a commentary by its research unit.
  • China consumer inflation hits near two-year high despite deeper-than-expected producer deflation. Consumer prices edged up 0.7% from a year earlier, its highest level since February last year.
  • Factory-gate prices fell 2.2% in November from a year earlier, missing the forecast of a 2% decline. Core inflation, which excludes volatile prices of food and energy, was up 1.2% year-on-year.
  • Trump to pit Hassett against trio of Fed chair finalists.
  • Trump gives Zelenskyy ‘days’ to respond to peace proposal.
  • Anglo American and Teck shareholders vote in favour of $50bn merger.

And finally….

Why don’t elephants use computers? They’re afraid of the mouse.

Clarence

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