ASX News Live | ASX 200 to Fall for Start of Final Quarter of the Year; Stocks to Watch; PEB, SYM, TIE

Coronado [ASX:CRN] saw its shares fall by 4.88% today as it announced another fall in production guidance for the year after disruptions in its QLD and US mines.

Due to disruptions at its QLD Curragh mine and Buchanan mine in Virginia, the company’s production guidance has been lowered from 17 million to 16.3 million tonnes.

Click below for more details and what this means for the company moving forward.

https://commodities.fattail.com.au/coronado-asxcrn-shares-fall-on-revised-production-guidance/2023/10/02/

Junior telco Aussie Broadband [ASX:ABB] was revealed today to have hired Goldman Sachs to produce a stealth counteroffer for Symbio [ASX:SYM] to take the company out of the hands of initially suitor Superloop [ASX:SLC].

Superloop had been seeking unanimous approval for the takeover bid at $2.85 per share but had its offer thrown to the side for the now unanimous ABB offer of $3.15 per share.

Aussie Broadband has seen a meteoric rise recently, with net profits quadrupling to $21.7 million and a stated intention to take Telstra customers.

The company currently holds approximately 7.6% of the broadband market share, up from 6.5% a year ago. The company is targeting a market share of 10% by 2025.

The deal has three weeks of due diligence before another board approval and a shareholder vote.

New Zealand-based cancer diagnostics firm Pacific Edge [ASX:PEB], shares took a nosedive following the announcement that the Food and Drug Administration (FDA) intends to regulate its flagship Cxbladder cancer test under new rules.

The change in rules coincides painfully with an earlier verdict by Novitas Solutions, one of Medicare’s regional administrative contractors, who deemed its Cxbladder cancer testing ‘not medically reasonable and necessary’ to warrant Medicare use.

The company’s shares have fallen by 12% today, trading at 10.5 cents per share after the news.

75% of this year’s total revenue was derived from the US market, where Medicare is a critical player in the healthcare landscape.

It’s been a tough quarter for global markets. Equities saw their first-quarter declines this year while bond yields continued to rise.

Concerns are being raised about the impact of falling bond prices and the escalating risk from the global destruction in the collateral value of fixed-income securities in a highly leveraged economy.

Fixed-income securities, often in the form of bonds, are popular investment options worldwide. They are considered relatively stable compared to equities due to their regular interest payments and the promise of principal repayment at maturity. These securities are widely used as collateral in financial transactions, providing a sense of security to lenders. Collateral value refers to the worth of these securities when used as a guarantee for loans or other financial obligations.

Despite US banks passing stress tests at the end of June, some are raising concerns about their ability to lend in the current bond environment.

Source: Wolfstreet.com

Here’s an interesting discussion with billionaire Barry Sternlict, predicting the potential of a Christmas slowdown. Do you think he’s overly pessimistic?

"The Fed should stop," says billionaire Barry Sternlicht. "What they're injuring is the balance sheet of the United States. The economy is going to slow. The regional banks do not have money." pic.twitter.com/lFKopsJlNr

— Win Smart, CFA (@WinfieldSmart) September 30, 2023

Gold prices have taken a tumble in September, with some of its biggest losses seen on the Chinese markets.

The Shanghai exchange saw its biggest drop in three years as the Chinese enjoy the ironically named ‘Golden Week’, which has seen people on holiday and Chinese tourists flood Thailand as visa waivers open up there.

Globally, the gold price has seen heavy pressure recently as bond yields move into previously unthinkable territory, nearing 5% yields on 10-year treasury notes.

Source: BullionVault

‘While gold technically is oversold‘ – now down 4.1% for the month of September in Dollar terms –’there is not much on the horizon for a large bounce,’ says a note from the trading desk at Swiss refiners and finance group MKS Pamp.

‘China is out for Golden Week [until Monday 8th October], removing a potential big bid, and while physical demand in other regions has returned (US retail investors, Middle East and Far East), that is supportive, not outright bullish.’

Markets are flat around midday, with the ASX 200 at -0.03%, 7,046.7.

The worst hit is the Health Care (-0.86%) and Energy (-0.65%) Sectors, while Real Estate (+0.65%) and Materials (+0.63%) see the biggest gains.

ASX market movers:

• Coronado shares have dropped 4.24% after the coal producer revised down its full-year production guidance due to disruptions at its Buchanan mine in Virginia.
• Syrah Resources shares have soared 12.75% on the back of improved natural graphite demand in the most recent quarter.
• Superloop shares have gained 1.5% after the company let its bid for fellow ASX-lister Symbio lapse due to a competing buyout offer from Aussie Broadband. Symbio shares jumped 14.77%.
• De Grey Mining shares are down 1.12% after the gold miner completed a $300 million share placement priced at $1.05 a share. Shares last traded at $1.09.
• Pacific Edge shares are down 16% after the company warned that proposed changes to US Food and Drug Administration guidelines could result in more red tape for its bladder cancer diagnostic device, Cxbladder.
• Megaport shares are up 2% after the cloud provider confirmed its new CFO, Leticia Dorman, who has stepped up from her interim position there.

As disgraced head Sam Bankman-Fried was denied temporary release from prison before his trial, crypto markets are on the move.

Meanwhile, millions in Ether tied to an FTX hacker are on the move. FTX was hacked hours after declaring bankruptcy in November 2022.

Big gains have been seen across the board as markets react to shaky equities markets and sky-high bond yields with surprising enthusiasm.

BTC’s relative strength index (RSI) sits at a whopping 81.74, showing high buying pressure and a short-term bullish trend.

In a recent update from the DFA (Digital Finance Analytics) survey and modelling, it has been revealed that mortgage stress in Australia reached a record high in cash flow terms by the end of September.

This raises concerns among economists, policymakers, and everyday Australians as the Reserve Bank meets tomorrow with new Governor Michelle Bullock at the helm.

It’s almost unanimously agreed that the RBA will keep rates on hold tomorrow, but the biggest question is when they will next come down.

CoreLogic housing data showed prices rose 0.8% nationally in September, led by Adelaide, Brisbane and Perth, where housing supply remains about 40% below the five-year average.

The median price of a home is now $1,110,660 in Sydney, $776,716 in Melbourne and $691,591 in Adelaide.

The DFA’s report is a stark reminder of the impact that rising interest rates are having on Australian households.

Surging immigration has also been raised as a concern for many renters within Australia’s cities as rents skyrocket.

Flash Report. Mortgage Stress end September at record high in cash flow terms via the DFA survey and model. "It's stress Jim, but not as we know it…"!! pic.twitter.com/XDfYQf242u

— Martin North (@DFA_Analyst) October 1, 2023

• ASX 200 opens down -0.28% at 7,028.6
• $AUD flat -0.07% at 64.29 US cents
• ASX futures flat -0.05% to 7,048.5
• S&P 500 down -0.27%
• NASDAQ up +0.14%
• DOW down -0.47%
• FTSE flat +0.08%
• STOXX flat +0.07%
• SSE up +0.10%
• Bitcoin up +3.58% to $US 27,985.54
• Spot gold down -0.46% to $US 1,846.54
• Iron ore flat -0.04% to $US 120.79
• Brent Crude up +3.41% to $US 95.34pb

All figures shown are from 10:10am AEST