End of Day – Fri 21 Jan

• The ASX 200 collapsed today as both resources and banks suffered heavy losses. The ASX 200 fell 167 points to 7176 (2.3%) below support and the bottom of the recent trading channel. Largest loss in a year.  Banks were struck down hard with the Big Bank Basket down to $174.78 (-1.3%) led by CBA off 1.3%, WBC down 0.6% and MQG down 3.8%. Insurers whacked with QBE down 2.2% and SUN off 1.9%. Big falls too in wealth managers and platforms, MFG down 3.9% and NWL falling 6.0%. Healthcare also on the nose as nowhere to hide, CSL down 2.5% and now well and truly under water, SHL down 3.1% and RMD falling 1.7%.
•  Industrials were walloped, WES down 2.3%, TLS down 1.5% and REA hit 3.6%. REITs fell too despite 10-year yields down at 1.90%. Tech smashed with CPU down 2.3%, BRN off 11.6% and MP1 down 4.4%. SQ2 fell 2.3% with the All-Tech Index down 3.0%. Resources though which have held up for so long capitulated after the BHP vote with the stock falling 4.8%, RIO saw Novax retribution and fell 4.1%, FMG down 2.1% and lithium shares depressed. PLS off 6.1% and MIN off 3.1%. Rare earths also in trouble, LYC down 7.5% and base metals off to despite price rises on the LME. Oil was weaker in Asian trade dragging down WPL by2.4 % and STO by 2.6%.
•  In company news, WHC warned of the effects on production of La Nina falling 6.10%, NXL disappointed yet again, when will investors learn, and dropped 22.8%. In economic news, ANZ jumped on the RBA ‘will shake things up’ band wagon after such good unemployment numbers yesterday. Nothing on the economic front, Asian markets flop Japan down 1.9%, HK down 0.8% and China off a similar amount. 10-year yields fall to 1.9%

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