- 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.
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 |