The ASX 200 started off the week down 62 points to 8635 (0.7%). Miners bore the brunt of the selling after a stellar week last week, with BHP down 2.9% and RIO falling 2.4% on lower iron ore and copper prices.  Gold miners too in profit taking mode after solid gains on Friday. GMD fell 5.4% and NEM off 0.9%. Lithium miners were also in profit taking mode as PLS fell 3.9% and LTR off 6.4%. Uranium stocks dropped hard as the AI trade in the US was called into question again, and thus the energy trade. NXG fell 4.5% and PDN down 4.7% with BOE off 8.2%. The banks were relatively calm as CBA fell 0.6% with the other three higher. The Big Bank Basket eased to $272.41 (-0.1%). Other financials eased, ASX under pressure following the ASIC reforms, GQG up 1.1% and SOL falling 1.2%. Insurers were generally better. Healthcare mixed as CSL stumbled 2.5% lower, TLX falling another 4.2%. REITs mixed, industrials mixed too. TLS down 0.8% and TPG up 1.8% with tech trying to find a base, WTC down 0.7% and XRO up 0.6%. The All-Tech Index up 0.04%. Retailers also found some bargain hunters, JBH up 2.3% and APE recovering 1.0%.

In corporate news, TWE in a trading halt pending outlook statement. EOS jumped 28.9% on a US$80m order from South Korea. 4DX rose 9.9% on news of approvals in Canada. WGX announced plans to spin off non-core assets and FMG announced plans to buy the remaining shares in Alta Copper.

Nothing locally on the economic front but Japanese factory sentiment improved opening the way to a rate rise this week. China announced its weakest retail numbers since Covid.

Asian markets eased on US falls, Japan down 1.4%, HK down 0.9% and China off 0.2%.

US futures were better, Dow up 160 and Nasdaq up 52.

10-year yields steady at 4.72%.

HIGHLIGHTS

  • Winners: EOS, DRO, SRL, 4DX, FML, MI6, ASB, ELS
  • Losers: BMN, DYL, BOE, SLX, RMS, LTR, ASX
  • Positive Sectors: Retail.
  • Negative Sectors: Iron ore. Gold miners. Uranium. Lithium.
  • ASX 200 Hi 8655 Lo 8623 Narrow range.
  • Big Bank Basket: Eases to $272.41 (-0.1%)
  • All-Tech Index: Unchanged.
  • Gold: Rises to $6510
  • Bitcoin: Falls to US$89664
  • AUD: Easier at 66.45c.
  • Asian markets eased on US falls, Japan down 1.4%, HK down 0.9% and China off 0.2%.
  • 10-year yields steady at 4.72%.

MARKET MOVERS

  • SRL +10.5% volatility continues.
  • DRO +10.6% follows EOS higher.
  • 4DX +9.9% regulatory approvals for CTVQ in Canada.
  • MI6 +5.6% high-grade gold at Bullabulling.
  • DGT +3.8% distribution.
  • TTT +4.9% secures contract with leading defence provider.
  • MTM +9.6% solid bounce.
  • GG8 +% going ape on Comet Val increase.
  • ASX -5.7% ASIC reforms.
  • DYL -8.5% BOE -8.2% PDN -4.7%uranium sell-off.
  • LTR -6.4% becoming a substantial shareholder.
  • Speculative Stock of the Day: EOS +28.9% US$80 order from South Korea.Big volume, dragging sector higher too.

ECONOMIC AND OTHER NEWS

  • UBS expects the Australian dollar to benefit in 2026 from a widening divergence in monetary policy between Australia and the US.
  • The business sentiment index advanced to 15 this month from 14 in September, the BOJ’s quarterly Tankan business survey showed Monday.
  • Jimmy Lai found guilty in HK security case.
  • Confidence among Japan’s large manufacturers rose to the highest level in four years, reinforcing market expectations for the Bank of Japan to raise interest rates this week.
  • China’s retail sales grew at the weakest pace since the crash caused by Covid while investment slumped further.
  • Industrial production climbed 4.8%, down from 4.9% in the previous month. Fixed-asset investment shrank 2.6% in the first 11 months of the year as property investment continued to crater. The urban unemployment rate was unchanged at 5.1%.
  • Conservative hardliner wins Chile’s presidency in election landslide.
  • VW gears up for first production closure in Germany in its 88-year history.
  • Big week for central banks. ECB, BoE and BoJ later this week.

And finally…..

I started a poetry club for prisoners. We called it “Prose and cons”

Clarence

XXX