ASX 200 Henry Jennings, Australian Market Wrap. Headlines, Stocks, Bonds, Economic & Asian Market News – END of DAY REPORT.

 

The ASX 200 fell 17.5 points to 6640.5 in late sell off. US Futures down slightly by 20 points. The market opened weaker, but bargain hunters took advantage of lower prices to step in, but sellers won out at the close. Banks under a little pressure with CBA leading the sector lower by 0.2% and WBC down 0.85%. Miners lost gains at the close with BHP down 0.2% and FMG down 0.34%. Gold miners saw profit taking after a stellar run in bullion. NCM down 0.8% and NST down 1%. Industrials were mixed with REITS slightly lower, bond proxies rose with TCL up 0.66%. TLS fell 1% after announcing a rationalisation of plans. In corporate news, the stock formerly known as Melbourne IT, ARQ, dropped 38.46% on a profit down grade. Asian markets weaker across the board on less dovish Fed. China off 0.36% and Japan down 0.67%. AUD 69.65c and bond yields rise again.

Today’s Highlights

  • ASX 200 down 17.5 to 6640.5
  • High 6658 Low 6637. Late sell off.
  • Banks weaken but miners mixed.
  • Gold takes a breather.
  • Energy stable as US driving season kicks off.
  • CSL does well again. TLS slips slightly.
  • China facing consumer stocks fall on ScoMo comments.
  • ARQ joins the downgrade club. Plenty more members.
  • AUD rallying back to 69.65c
  • Aussie gold slides to $2021.
  • Bitcoin hits US$12,555.
  • US futures down 61
  • Asian markets slightly higher with Japan up 0.11% and China unchanged.

STOCKS

  • PNV +4.08% buyers back.
  • APT +5.52% AUSTRAC update.
  • Z1P +4.95% follows the APT sentiment.
  • SFR +4.30% starts the MOD sell process.
  • SGF -2.48% alliance with IBNA.
  • CVN +2.70% optimism on Dorado drilling grows.
  • BAL -4.65% China issues perhaps.
  • NET +22.73% announces China revenue.
  • KGN +11.36% sets the record straight on web traffic.
  • RHL delays scheme until early September.
  • GGG +12.00% rare earth play in Greenland.
  • AMC +2.38% ATO class ruling on scheme.
  • BYE +5.26% buyers step in.
  • CKF +8.03% Australian in the semis.
  • ECX +4.20% bargain hunters.
  • DMP +1.65% class action costs estimated. Gofundme maybe?
  • CSR -1.98% AGM comments as high energy prices take toll.
  • ARQ -38.46% 404 page not found
  • Speculative stock of the Day: Nothing on volume to excite.
  • Biggest Risers: CKF, NWH, APT, DDR, Z1P, VGI and HLO.
  • Biggest Falls: CIA, ORE, EHL, BAL, LNK, OML and CUV.

TODAY

  • Fletcher Building Limited (FBU) –3.34% Announces on-market share buyback of up to NZ$300m, confirms FY19 guidance. Dividend policy unchanged, targeted pay-out ratio between 50%-75%. Full-year EBIT before significant items expected to be around NZ$620m-NZ$650m.Expects “ongoing contraction in the key residential market in Australia” in FY20.
  • CSR Limited (CSR) –1.98% Trading update; building product volumes for the last two months remain broadly consistent with Q4 of last year. MD Rob Sindel said “recent reductions in rates, improving credit availability, stable tax policies and first homeowner support have boosted hopes for an improvement in consumer confidence and demand for housing.”
  • Afterpay (APT) +5.52% Has provided AUSTRAC with details of three candidates for conducting the external audit in line with the AUSTRAC Notice. Reiterates that it welcomes the opportunity to continue to work closely and constructively with AUSTRAC to ensure that compliance is robust. APT said it would also defer the Share Purchase Plan until it has ‘considered the final audit reports & its recommendations’ ordered by AUSTRAC.
  • Amcor (AMC) +2.38% To sell 3 former Bemis flexible packaging plants in the UK & Ireland for $394m. This was required by the European Commission as part of Bemis acquisition.
  • Dexus (DXS) –1.09% External property valuations on 109 of 114 assets have resulted in a 1.6% ($250m) lift to book value. Dexus’s net tangible asset backing (NTA) per security is expected to increase 23 cents.

ECONOMIC NEWS

  • RBNZ holds rates steady.
  • ScoMo has told a conference that Australia will not sit back as the US/China battle worsens.
  • Goldman Sachs has downgraded Australian equities to underweight after the recent strong price rises. PE ratios soaring Plenty of downgrades too recently.
  • EY has hired ‘the fixer’ Pyne.

BOND MARKETS

  • 2-Year bond yields rise 5bps to 0.95%
  • 5-Year yields rise 3bps to 0.97%
  • 10-Year yields rise 1bps to 1.29%

ASIAN NEWS

  • China bans Canadian meat imports as it spots forged documents.

EUROPEAN AND US HEADLINES

  • German consumer confidence falls a little more weaker than expected to 9.8.German politicians to discuss the budget today.
  • G20 is really now a G2 meeting. Nobody else matters. Not even worth going for the other 18.
  • Fed rate cut is NOT a done deal. 50bps would be a extreme move given the data says James Bullard. Gold pulls back.
  • Sounds like Trump is prepared to suspend the next round of tariffs on China but may go hard on currencies instead. Everyone is cheap and the USD is expensive.
  • Food security is fast becoming a serious issue for China. African Swine Fever has taken its toll and now the Armyworm has been found in half of its provinces. Armyworm is not good. Destroys crops.
  • Robert Mueller is expected to testify before Congress in July.
  • San Francisco bans E- cigarettes.
  • European heatwave coming. Not good for travel stocks. Same thing happened last year as more Brits stayed at home.
  • Global regulators are looking to curb the enthusiasm of Facebook with its Libra as the UK regulator calls for co-ordinated action on cryptocurrency.
  • Boris has pledged for the UK to leave the EU by end of October. He now believes that the current deal is dead. He will renegotiate terms. Given that he will not be PM until the end of August and France closes in August then he is not giving himself much time.
  • Media saturated with stories on how to buy gold. Must be the top!

And finally…………….

Four old-timers were playing their weekly game of golf, and one remarked how nice it would be to wake up on Christmas morning, roll out of bed and without an argument, go directly to the golf course, meet his buddies and play a round.

His buddies all chimed in and said, “Let’s do it! We’ll make it a priority, figure out a way and meet here early Christmas morning.”

Months later, that special morning arrived, and there they are on the golf course.

The first guy said, “Boy, this game cost me a fortune! I bought my wife such a diamond ring that she can’t take her eyes off it.”

The second guy said, “My wife is at home planning the cruise I gave her. She was up to her eyeballs in brochures.”

The third guy said, “Well, my wife is at home admiring her new car, reading the manual.”

They all turned to the last guy in the group who is staring at them like they all had lost their minds. “I can’t believe you all went to such expense for this golf game. I woke up, slapped my wife on the bum and said, ‘Well Babe, Merry Christmas! It’s a great morning for either sex or golf…’

“And she said, ‘Take a sweater.’”

Women really know how to hold a grudge. My wife asked me to pass her a lip balm. And by mistake, I gave her a tube of Super Glue. It’s been a month now and she’s still not speaking to me!

I proposed to my ex-wife. But she said no. She believes I’m just after my money.

I just got a photo from a speeding camera through the mail. I sent it right back – way too expensive and really bad quality.

Clarence

XXX

mt_tryforfree
Financial Markets and Political Commentary
 

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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