• The ASX 200 fell 0.70% on Friday, but was 0.6% for the week
  • Energy stocks dragged down the index, but gold stocks outperformed
  • The RBA is set to deliver its rates decision next Tuesday

Energy hares dragged the ASX 200 down by 0.7% on Friday. For the week, the index was up 0.6%.

Oil prices retreated in Asian hours ahead of the OPEC+ meeting this weekend.

Traders expect the cartel to cut its output and if it does that, experts say crude prices could rally another 5-10% from here.

Beach Energy (ASX:BPT) was one of the worst energy stocks today, falling around 4% after announcing today that it will acquire Warrego Energy (ASX:WGO) at 25c a share, to counter Hancock Energy’s 23c offer.

Hancock has since increased its offer to 28c an offer.

Gold stocks rallied across the board, with the spot gold price now trading at US$1,796 an ounce.

The real estate sector fell by 2% ahead of the RBA interest rates decision Tuesday.

Rates are tipped to increase by another 25bp when the central bank board meets for the last time this year.

CBA’s Head of Australian economics Gareth Aird said he could not see the RBA raise more than 25bp this time around.

“The RBA is still flying blind to a degree given the last few rate hikes have not yet hit home-borrowers from a cash flow perspective,” he said.

“We expect that at the December board meeting the discussion will be between raising the cash rate by 25 basis points or leaving policy on hold.”

Fund manager Janus Henderson expects to see the impacts of rapid monetary tightening progressively show up as we go through 2023.

“With tightening monetary conditions and slowing consumer spending, we see the rate of economic growth halve to 1.5% over 2023,” said a note out of Janus.

“While a recession is not our base case, it remains a significant risk given the uncertain paths for the Ukrainian war, energy prices and offshore central bank tightening.

“Our base case view is that the cash rate peaks at a moderately restrictive 3.6% in mid-2023 (from the current 2.85% today).”

Looking ahead to tonight’s session on Wall Street, the crucial US non-farm payroll for November is due to be released.

BIG CAP WINNERS

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Gold stocks rallied today and Capricorn Metals (ASX:CMM) was one of the best performing gold stocks, up 7%.

BIG CAP LOSERS

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Adbri (ASX:ABC) fell 3.5% after saying that it will continue to review the Kwinana upgrade project, given that the anticipated upgrade costs have escalated due to rises in construction costs and labour constraints within WA.

Medibank Private (ASX:MPL) fell 2% Medibank Private (MPL) as Maurice Blackburn Lawyers plan to file a representative complaint with the Office of the Australian Information Commission (OAIC) regarding MPL’s handling of the recent data breach.

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