• ASX closes higher as Wall Street rebounds and US bond yields retreat on weaker jobs data
  • Lithium miners fall as J.P. Morgan downgrades sector after reviewing lithium price outlook
  • Life 360 and Xero higher as tech sector rallies along with gold plays as price of precious metal moves higher


Remember how George Costanza in Seinfeld would exclaim “I’m back baby, I’m back!”? Well, “We’re back baby, we’re back”, or at least today the ASX is moving in the right direction… parts of it anyway.

After a downwards trajectory and closing at an 11-month low on Wednesday, the ASX has closed 0.51% higher for the first time this week and in October.

The Aussie bourse followed a relief rally in Wall Street overnight as the latest ADP jobs data came in weaker than expected. The Institute for Supply Management (ISM) also reported its non-manufacturing PMI slipped to 53.6 last month from 54.5 in August.

In a further relief of the pressure valve on US markets the price of crude oil dropped ~5.6% to below $85 a barrel.  As a result of the positive news US treasury yields have fallen from multi-year highs.

But IG markets analyst Tony Sycamore told Stockhead “the current sense of calm can quickly be undone by the release of a hotter-than-expected Non-Farm Payrolls report in the US on Friday”.

“We’ve had a brighter day today but whether the interest rate storm clouds return next week will depend on the outcome of Friday night’s Non-Farm Payrolls Labour Market Report,” he says.

“We had the JOLTs job opening earlier this week in the US which was four standard deviations higher than the market was expecting, then we had last night’s ADP employment report which was cooler, so the deciding factor will be the Non-Farm Payrolls.

“If it fails to show signs of cooling it could make for a very rocky opening on Monday morning.”

Today wasn’t so positive for lithium miners falling following J.P. Morgan downgrading the sector after reviewing its lithium price outlook after a 30% fall in spodumene and a 45-50% fall in carbonate and hydroxide in the September quarter.

The broker has cut Pilbara Minerals (ASX:PLS) to neutral, Core Lithium (ASX:CXO) and IGO (ASX:IGO) to underweight.  J.P Morgan maintains an overweight rating for Allkem (ASX:AKE) and Leo Lithium (ASX:LLL) due to valuation support.

Eight of the 11 sectors were in the green today, with real estate leading the winners and energy topping the laggards.

Chart via Marketindex.com.au

Asian stocks were also up today buoyed by the Wall Street rally, a cheaper Japanese Yen, lower oil prices and retreating bond yields.

Benchmarks rose in Tokyo, Seoul and Hong Kong. Mainland China has been shut since Friday for the Golden Week holiday, which continues until the end of this week.



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Code Name Price % Change Volume Market Cap
APM APM Human Services 1.905 5% 750,594 $1,669,271,142
GMD Genesis Minerals 1.39 5% 4,897,954 $1,380,285,302
NST Northern Star 10.635 4% 2,515,162 $11,686,772,126
HDN Homeco Daily Needs 1.1675 3% 1,385,969 $2,346,982,804
VCX Vicinity Centres 1.725 3% 6,846,344 $7,602,299,848
BGL Bellevue Gold Ltd 1.3775 3% 2,799,101 $1,528,103,682
360 Life360 Inc. 8.25 3% 383,866 $1,604,693,568
NEU Neuren Pharmaceuticals 11.81 3% 570,867 $1,451,708,304
EVN Evolution Mining Ltd 3.26 3% 4,916,552 $5,823,872,862
NXT Nextdc Limited 12.43 3% 516,030 $6,222,817,278
DXS Dexus 7.35 3% 1,923,926 $7,690,291,509
GPT GPT Group 3.84 3% 2,095,409 $7,164,259,588
NHF NIB Holdings Limited 7.505 3% 455,585 $3,540,063,079
XRO Xero Ltd 113.56 3% 592,541 $16,766,482,703
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On the winners’ list today were those tracking sectors higher including family tracking app Life360 (ASX:360)  and accounting software Xero (ASX:XRO), with the tech sector the second top performer today.

As the price of gold rallied so too did miners of the precious metal with Northern Star Resources (ASX:NST), Genesis Minerals (ASX:GMD)Bellevue Gold (ASX:BGL) and Evolution Mining (ASX:EVN).

The price of the precious metal is up 0.40% to US$1842 ounce.



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Code Name Price % Change Volume Market Cap
MAD Mader Group Limited 6.24 -5% 141,673 $1,314,000,000
IGO IGO Limited 11.52 -4% 2,452,216 $9,125,077,147
ALL Aristocrat Leisure 39.225 -4% 1,238,878 $26,376,938,942
ALD Ampol Limited 31.98 -3% 466,201 $7,842,522,078
VEA Viva Energy Group 2.78 -3% 5,523,738 $4,416,315,466
MIN Mineral Resources 61.68 -3% 650,620 $12,361,156,485
CIA Champion Iron Ltd 5.91 -2% 1,349,354 $3,134,812,154
PLS Pilbara Minerals 3.95 -2% 26,094,479 $12,188,323,773
ZIM Zimplats Holding Ltd 22.16 -2% 17,859 $2,443,374,632
LNW Light & Wonder Inc. 108.72 -2% 34,559 $1,366,493,446
KAR Karoon Energy Ltd 2.5 -2% 1,621,967 $1,444,418,524
IRE IRESS Limited 5.32 -2% 722,104 $1,012,398,949
IFL Insignia Financial 2.4 -2% 1,932,861 $1,616,739,710
MEZ Meridian Energy 4.82 -2% 19,422 $6,205,235,388
WHC Whitehaven Coal 6.735 -2% 3,861,628 $5,722,349,363
RIO Rio Tinto Limited 111.91 -2% 989,311 $42,177,586,235
SVW Seven Group Holdings 28.8 -1% 502,424 $10,627,241,333
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On the losers’ list today were energy stocks as the sector and price of oil retreated including Ampol (ASX:ALD), Viva Energy (ASX:VEA) and Karoon Energy (ASX:KAR).