Wednesday 4th November – ASX 200 drops 52 – US elections in focus – Defensives back in fashion. | Beeks Downunder-Because not all financial news is boring!

The ASX 200 dropped 52 points to 8835 (0.6%) as U.S. elections soured the futures market. It was back to risk-off today, with the banks holding relatively steady, although CBA fell 0.6%, with WBC slightly firmer. MQG fell 1.7%, and other financials also slid, with the insurance sector a little mixed. REITs were also under some pressure, with GMG down 1.6% and VCX down 1.2%. Retail stocks were also suffering today, as JBH gave back some gains and ALL lost 1.3%. Tech stocks were also under pressure, with REA falling 2.6% and XRO down 0.1%. Defensives like WOW rose, as did TLS, and utilities ORG up 1.9% and APA up 0.5%.

In resources, we saw selling in the iron ore stocks, with BHP, RIO, and FMG all down around 1.5%, as the gold miners also gave up early gains, falling away with NST down 2.0% and EVN down 0.3%. Lithium and rare earth stocks continued to be pressured, but we did see 1% gains in WDS and STO, together with a steadying in the coal sector.

In corporate news, XYZ jumped 6.1% after the company beat quarterly profit expectations, and INA fell 3.8% after providing an update on the takeover battle underway, while CCX soared 13.9% on a trading update.

On the economic front, figures today from the ABS showed household spending jumping 6.8% year on year, higher than some forecasts at 6.1%.

Asian markets tumbled on the back of U.S. midterm results, with so-called data centre states flipping to the Democrats and putting pressure on Korea, Taiwan, and Japan.

HIGHLIGHTS

Winners: AYA, XYZ, QAL, WIA, NXT, VEA
Losers: 4DX, SLX, EOS, DRO, HGH, CU6, PNI
Positive Sectors: Utilities. Oil and gas.
Negative Sectors: Resources. Retail. Tech. Industrials.
ASX 200 Hi 8864 Lo 8802
Big Bank Basket: Eases to $284.80 (0.2%)
All-Tech Index: Down 0.5%
Gold: Rallies to $5670
Bitcoin: Better at US$77370
10-year yields: Falls to 5.05%.
AUD: Eases to 69.65c on US elections.

MARKET MOVERS

XYZ +6.1% good results.
AYA +8.1% one of Charlie’s faves.
EQR +3.7% nice tungsten bounce.
NXT +4.2% existing data centres now more valuable?
4DX -10.8% crumbles again.
SLX -9.6% uranium under pressure.
EOS -7.8% smacked hard.
DRO -7.6% no shield.
CTT -8.22% sellers back.
Speculative Stock of the Day: BPM +77.8% high grade gold hits.

ECONOMIC AND OTHER NEWS

It looks like a blue wave has swept the U.S., with the Democrats doing well. U.S. stock futures fall hard on news. Democrats will control of both houses.
It’s the gas price stupid.
The Democrats have won some of the data centre states.
South Korean chipmaker stocks plunged on U.S. midterm results, with the Kospi dropping nearly 4%. The Nikkei 225 was also down a similar amount.
Locally, household spending data conflicted with recent corporate updates, with the ABS showing household spending jumped 6.8% year on year, higher than the 6.1% forecast.
Copper under pressure on the U.S. election results.
According to the ABS, AI has had limited impact on the labour market so far, with a report showing that around 82% of businesses said that AI had not impacted job vacancies in August.
Donald Trump says the U.S. will end military aid to Israel by the end of the year.

And finally….