PEAK ASSET: ARVO WRAP 31 OCTOBER: ASX Large Caps: Shares down 3pc in October, and RBA’s stern warning over social media | Chimeric Therapeutics receives FDA clearance for CHM 2101 to treat gastrointestinal cancers |

Whats cracking?

Turns out it’s Krakatoa!

Krakatoa Resources (ASX:KTA)

If an absolute eruption of price hasn’t quite hit yet for critical minerals hunting junior Krakatoa, a boom of activity is certainly taking place. It’ll definitely take the simmering +26% price action this afternoon, however.

• The $10.4m market-capped company has begun a reverse circulation (RC) drill program to test high-grade lithium targets at King Tamba.

• Grades of up to 4.3% Li from rock chip samples are being targeted.

• Drilling will be conducted across the Wilsons, Loader and MGM prospects…

• … with 12-15 RC holes, spanning 1,200 metres, to be drilled as part of the campaign.

• All three prospects have previously returned high-grade lithium results.

Across Markets…

• ASX ended the month of October more than 3pc lower
• RBA warns that social media could lead to SVB-style collapse in Australia
• The US Fed will convene for the first of its two-day meeting tonight

Local shares ended the last trading day of October flattish despite opening higher this morning. For the month, the benchmark ASX 200 index was down over -3.5%.

Today’s session began with a speech by Brad Jones, an assistant RBA governor, who told a press conference that the “emerging risks we are likely to confront over the next decade have a different complexion to those of recent decades”.

Jones listed risks we are likely to face such as sudden withdrawal of deposits sparked by social media, citing the demise of California-based Silicon Valley Bank earlier this year.

Many traders stayed on the sidelines as they await the result of the US Fed meeting, which will convene later tonight, with a rates decision announced on Thursday AEDT.

“The Fed will not raise rates this week, as there is no need to exercise that option just yet and the markets are not demanding further tightening,” said Erik Weisman, Chief Economist and Portfolio Manager at MFS Investment Management.

“But, until the labour market has cooled considerably, and inflationary pressures display sufficiently persistent containment, the Fed will keep the option of future rate hikes firmly on the table.”

On the ASX, a tsunami of companies (both large and small caps) lodged their September quarter reports today, being the last day of the month.

Gains in the Staples and Real Estate sectors were offset by losses in Mining and Energy sectors. Most energy stocks fell after a 3% slump in crude prices overnight.

Best large cap today was food company Inghams Group (ASX:ING), which rose 7% (see more details below).

Lithium stocks like Pilbara (ASX:PLS) and Mineral Resources (ASX:MIN) were the worst performers.

Treasury Wine Estates (ASX:TWE) is in a trading halt, pending an announcement on a potential acquisition of high-end Californian wine group Daou Vineyards for $US1 billion.

Source: Stockhead