ASX Large Caps: ASX 200 erases weekly loss, UK-exposed stocks rally on Truss U-turn

The ASX finished almost 2% higher on Friday, flat for the week
UK-exposed stocks rose on potential policy U-turn by PM Liz Truss
China’s inflation at 2-year high

The ASX tracked Wall Street higher today as the local index finished the day 2% higher, but ended the week flat.

Shares were up across all 11 sectors as investors digested Wall Street’s bullish reaction to the latest US inflation report.

Overnight, Wall Street had one of its most volatile sessions in recent memory as the S&P 500 swung by 5% – from a 2.5% loss to close the day 2.5% higher.

The index had plunged after the US CPI report showed that inflation has reached a 40 year high of 8.2% in September, versus the consensus forecast of 8.1%.

Core CPI, which excludes the volatile food and fuel prices, gained 6.6% versus consensus of 6.5%.

Analysts believe the raging hot inflation is expected to keep the Fed in rate hike mode for at the least the next few FOMC meetings, starting in November.

UK-exposed stocks like Virgin Money UK (ASX:VUK) and Janus Henderson (ASX:JHG) performed well today (up 10% and 6% respectively) as British PM Liz Truss vowed to pressure, agreeing to take a major U-turn on her signature corporation tax cut announced just a couple of week ago.

Her Chancellor Dr. Kwasi Kwarteng is on the next plane home from the IMF meeting in Washington D.C. as we speak.

Personally I think Liz Truss, Kwasi Kwarteng, Suella Braverman et al are doing a really fine job for the Conservative Party
We just need a General Election so the rest of us can give them feedback

— nazir afzal (@nazirafzal) October 13, 2022

Closer to home, China’s inflation hit 2.8% in September, the highest since April 2020 but still way below that of the US.

The Chinese producer price index (PPI), which reflects the prices that factories charge wholesalers for products, also rose by 0.9 per% in September year on year.

On the ASX, Energy stocks rose 3% as most of its US counterparts did overnight on the back of rising oil prices (up 2% last night). Utility stocks, led by Origin Energy (ASX:ORG), also rose 3%.

The Aussie dollar climbed strongly to above US63c, trading now at US63.30c. Bitcoin is also on the rebound, trading at US$19,800.

Looking ahead to tonight’s Wall St. session, US retail prices and Euro trade balance data are scheduled, while Fed’s Cook will speak.

BIG CAP WINNERS

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Code	Name	Price	% Change	Volume	Market Cap
JLG	Johns Lyng Group	5.3	6%	1,463,040	$1,298,567,321
GNE	Genesis Energy Ltd	2.35	5%	33,572	$2,341,403,191
CQE	Charter Hall Soc In	3.38	5%	344,029	$1,173,177,976
SQ2	Block	89.17	5%	226,693	$3,502,929,866
BKL	Blackmores Limited	68.66	5%	52,018	$1,269,002,167
PME	Pro Medicus Limited	40.53	5%	173,397	$4,036,165,213
IPH	IPH Limited	7.73	5%	808,814	$1,614,885,932
LIC	Lifestyle Communit.	12.75	5%	122,121	$1,273,359,696
GMG	Goodman Group	18.055	5%	2,672,250	$32,226,840,005
PNI	Pinnacle Investment	6.93	5%	1,167,736	$1,323,084,769
CIP	Centuria I REIT	2.97	4%	1,698,914	$1,809,552,310
MTS	Metcash Limited	4.14	4%	5,627,032	$3,842,855,576
JHX	James Hardie Indust	30.91	4%	1,449,059	$13,238,229,262
NXT	Nextdc Limited	10.505	4%	796,028	$4,616,776,419
ARF	Arena REIT.	4.215	4%	593,708	$1,407,512,209
CEN	Contact Energy Ltd	6.6	4%	7,779	$1,575,384,618
CLW	Chtr H Lwr	4.47	4%	2,238,796	$3,115,938,058
SCP	SCA Property Group	2.85	4%	1,657,888	$3,069,787,215
VUK	Virgin Money Uk PLC	2.28	4%	4,766,497	$1,804,898,053
GOZ	Growthpoint Property	3.51	4%	406,400	$2,615,580,020

Genesis Energy (ASX:GNE) rose 4% after lifting its FY23 EBITDA guidance from around $455 million to around $500 million.

Genesis however says this remains subject to hydrological conditions, gas availability, and any material adverse events or unforeseeable circumstances.

Telix Pharma (ASX:TLX) was up 1% after announcing that Health Canada has approved lead product Illuccix for use in staging and re-staging prostate cancer, and localising tumour tissue in recurrent prostate cancer.

BIG CAP LOSERS

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Code	Name	Price	% Change	Volume	Market Cap
PLS	Pilbara Min Ltd	4.715	-5%	44,673,261	$14,744,591,527
INR	Ioneer Ltd	0.525	-5%	6,749,425	$1,153,973,742
MAQ	Macquarie Telecom Gp	58.3	-4%	34,235	$1,311,168,842
HVN	Harvey Norman	3.99	-4%	2,663,741	$5,170,927,614
WAF	West African Res Ltd	1.0275	-3%	1,273,654	$1,082,315,141
CMM	Capricorn Metals	3.19	-3%	616,443	$1,226,474,607
ZIM	Zimplats Holding Ltd	25.5	-3%	5,358	$2,820,106,404
BRN	Brainchip Ltd	0.875	-2%	5,128,955	$1,530,232,308
PRU	Perseus Mining Ltd	1.58	-2%	1,129,804	$2,191,130,274
NST	Northern Star	8.005	-2%	4,120,685	$9,425,085,976
DEG	De Grey Mining	0.99	-1%	2,191,606	$1,548,499,895