Iron ore, Woodside and the banks have led the ASX higher in trading today.
The S&P/ASX200 had gained 44.10 points or 0.60% to 7,397.20 at time of writing, despite crossing below its 125-day moving average.
The index has lost 0.31% for the last five days, but sits 3.09% below its 52-week high.
The top performing stocks were Fortescue Metals Group (ASX:FMG) Ltd up 8.16% and Champion Iron Ltd (ASX:CIA) up 7.09%.
Banks were higher, with he majors rising 0.8%-1.3%.
As were utilities and staples, while resources stocks surged.
BHP was 4% higher and Woodside rose 3.9% after they agreed on their $US12 billion ($17 billion) gas project.
Rio Tinto rose 3.5% on the back of the iron ore performance.
On the flipside, Bapcor dived 7% after announcing the retirement of its CEO from February. Technology One fell 4.8% after its FY results and WiseTech fell 6.1%.
Afterpay dived 4.5% after Square dived 6.1% overnight.
More to life
Life360’s pending acquisition of US-based bluetooth tracker maker Tile in a deal worth up to $282.8 million.
The ASX-listed family safety tech outfit will fund the deal via a $280 million equity raise.
"This is genuinely the most impactful deal in our company's history, and along with our Jiobit acquisition from earlier this year, our vision of linking people, pets and things all in one place is now complete," CEO Chris Hulls said.
"This is not an opportunistic deal that came about from our strategic review, but rather the acquisition I've been hoping to make for the better part of a decade."
Tile CEO CJ Prober will join the Life360 board and said: "This is a landmark day for Tile".
"This acquisition not only brings together two incredible teams and complementary missions and values, it paves the way for us to jointly build the world's leading solutions for peace of mind and safety."
Low rates, larger risk
The Reserve Bank of Australia has warned that record low interest rates could cause "a sharp correction down the road”.
RBA head of domestic markets Marion Kohler told the Australian Securitisation Forum today, “one area of focus stems from the current historically very low interest rates”.
“Asset prices increase when risk-free rates are low, and this is part of the monetary transmission mechanism. However, as we’ve highlighted in recent Financial Stability Reviews, over time it also raises the prospect of ‘search for yield’ behaviour, where investors bid up the price of risky assets to the extent that risk may no longer be adequately priced”.
Search for yield behaviour generally affects more cautious investors including retirees, who are reliant on investment income.
“This, in turn, increases the risk of a sharp correction down the road,” Ms Kohler said.
“So, it’s important to closely monitor risk premiums to judge whether asset prices appear to be sensibly valued.”
The housing market was not on the agenda.
Zoom zoom
As you’d expect, Zoom’s earnings were higher.
Here is eToro analyst Josh Gilbert’s take.
“In today’s Q3 earnings, video teleconferencing software giant Zoom reported earnings of US$1.11 per share on revenues of US$1.05 billion, compared to analyst expectations of US$1.10 per share on revenues of US$1.02 billion.
“Zoom’s revenues climbed by 35%, yet once again, revenues growth slowed down dramatically from the 191 per cent revenue growth in Q1 this year. Earnings beat expectations and saw growth of 68% year-over-year.
“The company’s customers for enterprises with more than 10 employees for Q3 came in at 512,100, up 18% from last year. Importantly, customers contributing more than US$100,000 in revenue grew by 94% year-over-year, which highlights the fact that Zoom is continuing to add big enterprises with large budgets.
“Zoom’s guidance was better than expected, with earnings per share anticipated to be between US$1.06 and US$1.07 in Q4. This is a positive for Zoom shareholders, particularly given the weak guidance experienced in Q2.
“It was always going to be near impossible for Zoom to match its sustained growth in 2020, however, it’s not all doom and gloom for the company. Hybrid work environments are likely to be the new norm for most companies globally, as the pandemic has allowed many leaders and knowledge workers to be more comfortable with video collaboration as a form of communication.
“Ultimately, growth is slowing from its peak, but the company is still expanding and it’s anticipated that Zoom will be a crucial part of enterprise landscapes moving forward."
On the small cap front
Buru Energy Ltd (ASX:BRU) is up 21.43%. BRU’s Rafael 1 gas condensate discovery in the Canning Basin in northwest Western Australia is being prepared for a production test.
CV Check Ltd (ASX:CV1) is up 15.38%. CV1 has continued its strong start to the financial year with the IT service management company A$400,000 cash flow positive during October and having A$12.6 million in the bank.
Tamboran Resources Ltd (ASX:TBN) is up 3.12%. TBN’s Beetaloo Sub-basin strategy has received a significant shot in the arm from prolific US oil & gas investor Bryan Sheffield.
Australian Potash Ltd (ASX:APC) is up 2.67%. APC is making progress on its Lake Wells Sulphur of Potash Project (LSOP), with 17 of 79 planned bores operational.
Highfield Resources Ltd (ASX:HFR) is up 1.85%. HFR has released an updated ore reserve estimate for its flagship Muga-Vipasca Potash Project, encompassing a new life of mine plan ahead of construction.
FYI Resources Ltd (ASX:FYI) is up 1.47%. FYI says its high purity alumina (HPA) product appears to meet the higher end of the company’s anticipated internal measures, following the first phase of extended pilot plant trials with Alcoa (NYSE:AA).