ASX 200: Henry Jennings, Australian Market Rap. Stocks & Sectors, Bonds & Economic News – END of DAY REPORT.

 

Today’s Headlines

  • ASX 200 down 6 to 6235 as rally fades on weak banks.
  • High 6270 Low 6231. Cautious trades ahead of data dump beginning.
  • For the week the ASX 200 has fallen from 6300 to 6235 or around 1%.
  • Banks under pressure from ScoMo headlines.
  • Big miners struggle on commodity falls.
  • Healthcare and staples do better.
  • AUD lower at 73.71c on better retail sales.
  • Bitcoin weaker at US$7303
  • Aussie Gold falling to $1638.
  • US futures down 6
  • Asian markets quietly mixed with Japan up0.04%% and China falling another 0.49%

STOCK STUFF

Movers and Shakers

  • CVN +10.23% drilling report.
  • ALL +1.87% hits jackpot.
  • APX +6.54% tech rebound.
  • TCL +0.86% bucks reports of potential capital raising.
  • PLS +6.51% DFS leads to expansion greenlight.
  • APX +6.54% tech stocks bouncing
  • KGN +5.27% buyers return. Amazon flop again.
  • LOV +3.29% broker upgrade
  • CVW -0.96% broker downgrades.
  • AAD -1.37% broker downgrade.
  • HVN -1.70% no cheer from retail numbers.
  • LNG +19.85% stirring.
  • GOR -5.15% starting to look interesting.
  • RAP +12.50% trial now fully enrolled and Morgans upgrade
  • BLA +20.78% recovery continues in dog basket.
  • AVZ -7.69% punters taking profits.
  • MLX -6.15% copper pricing weighs.
  • AXP +31.31% capital raising.
  • Speculative stock of the day: Great Boulder +20.51% livewire markets article highlights Mt Venn Cu-Ni results pending.
  • Biggest risers – CVN, APX, PLS, FNP, EHL, APT and XRO.
  • Biggest fallers – GOR, LYC, CDD, MAH, AHG, GEM and RSG.

TODAY

  • Nib holdings (NIB) -0.36% To acquire QBE’s travel insurance business for $25 million. Nib says the buy is expected to be immaterial to EPS. One-off transaction and integration costs of $11m.
  • AirXpanders (AXP) +31.31% Announced a capital raising of around $20.3m, by way of placement and underwritten pro-rata, non-renounceable rights issue.
  • A2Milk (A2M) +0.84% A2M has bought another 8.3% of SM1 at a price of NZ 1090c. It now holds a 17.39% with no plans to increase its holding from here.

ECONOMIC NEWS

  • Australian retail turnover rose 0.4% in June 2018. “Food retailing (0.4%) led the rises Clothing, footwear and personal accessories rose 1.7% following a 2.3% rise in May.”

BOND MARKETS

ASIAN MARKET NEWS

  • Japan is now the world’s second biggest stock market. It lost its throne in 2014 but has roared back after recent Chinese index falls.
  • The Shanghai Composite Index has lost more than 16% in 2018 to be among the world’s worst performers, while the yuan has fallen 5.3% against the dollar.
  • Chinese reminbi hit again. China’s services sector growth slowed again in July as business confidence fell to a near-record low amid the current trade war

  • Tencent sinks (sorry Charlie) as analyst cut price targets, earnings estimates but keep ‘BUY’ rating despite all this. Not a single ‘SELL’ rating from anyone since 2014. Up 49,000% since listing in 2004. Second quarter results die August 15th.
  • Heineken has entered into a non-binding agreement with Chinese brewer China Resources Beer in a US$3bn tie-up to tap the China’s premium beer market.
  • Big global pharmas are now bypassing the US as they launch first in China. Both AstraZeneca and Eli Lilly are hitting China up with new drugs before US. All part of a push from China to dominate in the pharmaceutical market. A rule change last October meant that US companies could release in China without separate trials. Good enough for FDA good enough for China. Big Boost.

Something that Craig Drummond at MPL can only dream of.

  • One reason for the increased focus on health is the ageing population. One child policy had unintended consequences.

EUROPEAN AND US HEADLINES

  • European markets expected to open higher. FTSE up 43, DAX up 44 and CAC up 27.
  • Apple first amongst equals topping US$1 trillion market cap.
  • UBS says that Bitcoin needs to hit US$213,000 before it replaces money.
  • Sign of things to come as some airport passport controls suffer three-hour queues. EU maybe showing signs of a softer position on the Irish question. Would help May.
  • UK rate hike to hit home loans. Highest UK interest rates since 2009.
  • Amazon UK pays just GBP4.6m in tax despite revenues of GBP2bn.
  • US jobs tonight. The big one.

And finally

The Pope met with his cardinals to discuss a proposal from the Prime Minister of Israel.

“Your Holiness,” said one of the cardinals, “the Prime Minister wants to challenge you to a game of golf to show the friendship and ecumenical spirit shared by the Jewish and Catholic faiths.”

The Pope thought this was a good idea, but he had never played golf.

“Do we have a cardinal who plays who can represent me?” he asked.

“None that play well,” the cardinal replied. “But there is a man named Jack Nicklaus, an American golfer, who is very devout. We can offer to make him a cardinal, then ask him to play as your personal representative. Besides showing our spirit of cooperation, we’ll win the match.”

Everyone agreed it was a good idea and the call was made. Of course, Nicklaus was honored and agreed to play.

The day after the match, Nicklaus came to the Vatican to report to the Pope.

“I have some good news and some bad news, your Holiness,” the golfer told the Pope.

“Tell me the good news first, Cardinal Nicklaus.”

“I don’t like to brag, but even though I’ve played some great golf in my life, this was the best I’ve ever played, by far. I must have been inspired from above. My drives were long and true, my irons accurate and purposeful, and my putting perfect. With all due respect, my play was truly miraculous.”

“And there’s bad news?” asked the Pope.

“Yes,” Nicklaus sighed. “I lost by three strokes to Rabbi Woods.”

and one to groan at………………

PARAPROSDOKIANS… are figures of speech in which the latter part of a sentence or phrase is surprising or unexpected; frequently humorous.

1. Where there’s a will, I want to be in it.

2. The last thing I want to do is hurt you, but it’s still on my list.

3. Since light travels faster than sound, some people appear bright until you hear them speak.

4. If I agreed with you, we’d both be wrong.

5. We never really grow up; we only learn how to act in public.

6. War does not determine who is right – only who is left.

7. Knowledge is knowing a tomato is a fruit. Wisdom is not putting it in a fruit salad.

8. They begin the evening news with ‘Good Evening,’ then proceed to tell you why it isn’t.

9. To steal ideas from one person is plagiarism. To steal from many is research.

10. I thought I wanted a career. Turns out I just wanted paychecks.

11. In filling out an application, where it says, ‘In case of emergency, notify:’ I put ‘DOCTOR.’

12. I didn’t say it was your fault, I said I was blaming you.

13. Behind every successful man is his woman. Behind the fall of a successful man is usually another woman.

14. A clear conscience is the sign of a fuzzy memory.

15. You do not need a parachute to skydive. You only need a parachute to skydive twice.

16. Money can’t buy happiness, but it sure makes misery easier to live with.

17. There’s a fine line between cuddling and holding someone down so they can’t get away.

18. Where there’s a will, there are relatives.

19. I’m supposed to respect my elders, but it’s getting harder and harder for me to find one now.

20. I used to be indecisive. Now I’m not so sure.

21. You’re never too old to learn something stupid.

22. To be sure of hitting the target, shoot first and call whatever you hit the target.

23. Nostalgia isn’t what it used to be.

24. Change is inevitable, except from a vending machine.

25. Going to church doesn’t make you religious any more than standing in a garage makes you a car.

 

Have a great weekend 

Clarence

XXXX

mt_tryforfree

Financial Markets & Political Commentary

 

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About the author

Henry Jennings Contact: henryjennings@mac.com // @henryj007 Has been involved in Investment Banking and Stockbroking since the early 1980's. Stockbroker - Camerons Stockbroking Macquarie Bank - Equity Capital markets Macquarie Group - Divisional Director