“..initial rallies were snuffed out by Peter Navarro’s comments on trade talk.” Australian Market Wrap. Headlines, Stocks, Bonds, Economic & Asian Market News

 

The ASX 200 started with a bang but ended with a whimper closing up 10 points to 5954 (0.2%) after initial rallies were snuffed out by Peter Navarro’s comments on trade talk.

Although quickly walked back, the cat was out of the bag and the markets never recovered. Dow futures down 86 points. Banks were on the nose with the Big Bank Basket down to $124.81 with miners flip flopping and ending positive as BHP rose 0.8% and FMG up 1.3%. Gold miners flatlined on a stronger AUD and oil stocks fell to a similar fate. WPL down 0.6% and STO down 0.9%. Industrials were mixed, WES up 1.1% and TCL bounced back from the sell off yesterday up 1.7%.

Healthcare stocks were stuck in triage waiting, CSL lost 0.2% though FPH rose 3.3%. In tech stocks, a slightly positive outcome with APT up 2.1%, FXL did well after a business update rising 9.0% and the All Tech Index up 0.16%.

In corporate news, WSA had a great day up % on some promising drill results, CMW rose 8.0% on a proportional takeover approach, AMP had a day in the sun after getting its approvals, up 7.9% and CGF returned after its capital raise and fell 9.8%. EBO under a little pressure following a major shareholder selling down, falling 4.5%. In economic news, not much to get excited about, Consumer confidence saw no improvement and the AUD remains in favour around 69.10c.

The 10-year bond yield 0.89% slightly up on Monday. In Asia, we saw some volatility from confusion over US/China trade deals, Japan up 0.9% and China up 0.2% after a swoon mid-morning.

Today’s Highlights

  • ASX 200 gains 10 points to 5954.5.
  • High 5999 Low 5882. Navarro upsets the bulls.
  • Big Bank Basket bought back up to $124.81
  • All Tech Index up 0.16%
  • 92 trading days until the US election.
  • Dow Futures down by 87 points.
  • 10-year bond yields steady at 0.85%
  • AUD rises to 69.08c.
  • Aussie gold slips to $2540.
  • Bitcoin slips to US$9631
  • Asian markets slightly positive with Japan up 0.12% and China up 0.42%.

STOCKS

  • SCP – trading update and $22m rent hit.
  • ISX – claims $27m in damages from ASX.
  • WSA +16.02% good drill results at Western Gawler project.
  • LEP -0.61% maintains guidance despite pubs closed.
  • CGF -9.77% back after placement.
  • MSB -8.38% falls continue.
  • PRN -5.17% Business update.
  • PAN +8.33% stirring on nickel action.
  • AVH – off to States. Deferred settlement trading.
  • ASB -6.52% some profit taking.
  • CMW +8.05% proportional takeover approach.
  • AMP +7.93% approval green light.
  • JBH +4.09% ceasing to be a substantial shareholder.
  • SMP +17.95% positive results.
  • RXL +17.74% shallow drilling results.
  • FXL +9.02% business update.
  • NVX -8.41% retail offer oversubscribed.
  • Speculative Stock of the Day: Kalamazoo (KZR) +50.52% after acquisition of the 1.6Moz Ashburton gold project from NST with delayed payment terms subject to certain milestones.
  • Biggest Rises: WSA, MEZ, CMW, AMP, QUB, HMC and HTA
  • Biggest Falls: CGF, MSB, ASB, PRN, MVP and HUB.

TODAY

  • Vocus Group (VOC) +0.34% ACCC starts Federal Court proceedings against Dodo and iPrimus alleging false or misleading claims about NBN broadband speeds. iPrimus and Dodo are both owned by Vocus Group.
  • Perenti Global (PRN) -5.17% Guides FY20 underlying NPAT(A) $106m-110m. Pre-COVID-19 guidance was $115-120m. Payment of 3.5 cent per share interim dividend brought forward to July 23. Order book remains strong, notes significant opportunities in its tender pipeline which are expected to commence at the back end of FY21 and into the start of FY22. Adds it is well placed to withstand the ongoing economic challenges COVID-19 may present.
  • Harvey Norman (HVN) +4.93% Reports 11-month unaudited preliminary profit before tax (PBT) ~+20% vs pcp.
  • Crown Resorts (CWN) +1.80% Crown Perth to re-commence operations of its casino, gaming floor food and beverage outlets under temporary restrictions agreed with the WA Government. Capacity limits at each venue based on a prescribed maximum density of one person per two square metres (including staff).
  • Woolworths Group (WOW) -0.76% Guides full-year EBIT (post-AASB and ex-items) of $3.20-$3.25bn vs year-ago $3.29bn. Guides FY20 Hotels EBIT $160-170m vs year-ago $355m. Plans to develop two new automated distribution centres at Moorebank, NSW. Significant items to be booked in FY20 of $591m relating to remediation and transformation costs. Q4 sales for the 10 weeks ending June 14: Australian Food up 8.6% vs year ago. New Zealand Food up 15.1%, BIG W up 27.8% and Endeavour Drinks up 21.4% over the same period.
  • AMP (AMP) +7.93% AMP Life sale receives all regulatory approvals.
  • Australian Pharmaceutical Industries (API) –0.43% There is speculation API may look to raise equity if market conditions do not improve. There are reports certain pharmacists may pressure wholesale providers like API to lengthen payment terms due to lower sales, noting many pharmacists did not qualify for JobKeeper or rent relief.
  • FlexiGroup (FXL) +9.02% Interest-free instalment customers exceed 2.1m with $2.0bn processed across the retail platform for the 11 months to May 20. Online sales volumes for humm increased by 282% for the five months to May 20. CEO comments, “our firm leadership position in interest-free instalment transactions over $1,000, which is well in excess of the BNPL industry average, continues to be a strong differentiator.”

ECONOMIC NEWS

  • ANZ Roy Morgan Weekly Consumer Sentiment was flat at 97.5 points.
  • Greater Sydney’s rental vacancy rate at 4% was at its highest since 2005. The city’s CBD rental vacancy rate had doubled from 8.1% to 16.2% over the past year. Brisbane has risen from 4.5% to 13.3%, with Melbourne going from 2.2% to 9.3% over the past year. The main reason it seems is Airbnb owners giving up with short term and heading to long term leases again.

COVD-19 NEWS

  • Tokyo eyes a Disney reopening.
  • South Korea reports 46 more cases in 24 hours — bringing its total tally to 12,484.
  • Mexico reported 4,577 new confirmed Covid-19 infections, bringing the country’s total to 185,122, according to its Health Ministry. Its death toll from the pandemic now stands at 22,584.
  • California Governor Gavin Newsom said a jump in cases and hospitalisations over the past two weeks is “sobering” and indicate the state is still in the first wave of the virus.
  • South Africa’s coronavirus cases topped 100,000 on Monday as the country confirmed 4,288 new infections, bringing the total to 101,590.
  • Denmark is seeing smaller virus outbreaks in schools, entertainment parks and nursing homesas restrictions ease.

BONDS

ASIAN NEWS

  • China’s economy contracted in the three months to June from a year earlier according to the Chinese Beige Book. The latest official data showed China’s economy continued to creep out of its funk in May, driven by a recovery in industry amid sluggish consumer demand. China’s economy contracted 6.8% in the first quarter. Manufacturing profits, capital expenditures and retail sales volumes remained at historically low levels
  • A supercomputer developed by Fujitsu and Japan’s Riken Research Institute is now ranked the world’s fastest beating US and Chinese rivals. The Fugaku cluster has more than 150,000 processors and roughly 2.8 times the performance of the second-fastest supercomputer, according to TOP500.
  • China has penalised 10 of the country’s most popular livestreaming apps following a renewed crackdown on Tencent and ByteDance (TikTok).

EUROPEAN NEWS

  • European futures markets opening slightly lower.
  • Markets still very sensitive to trade talk as Navarro gets misunderstood before his boss clarifies.
  • UK and Japan rush to the trade deal altar. 6-week timetable seems a bit tight.
  • Trump moves to stop visas fro foreign workers.
  • Apple moves away from Intel chips. UK PM Johnson will outline his latest plans for reopening the UK economy. Museums and pubs today.
  • US shale companies face a US$300bn hit in Q2 with big write downs in the wind.
  • Wirecard hanging in the wind as scale of fraud continues to be revealed.

And finally…

A  magician worked on a cruise ship.

The  audience was different each week so the magician did  the same tricks over and over  again.

There was only one problem: The  captain’s parrot saw the shows each week and began to  understand how the Magician did every  trick.

Once he understood, he started  shouting in the middle of the show, “Look, Its not the  same hat!” or, “Look, he’s hiding the flowers  under  the table!” Or “Hey, why are all the cards  the ace of spades?”

The magician was  furious but couldn’t do anything. It was, after all,  the Captain’s’ parrot.

Then one stormy  night on the Pacific, the ship unfortunately sank,  drowning almost all who were on board.
The  magician luckily found himself on a piece of wood  floating in the middle of the sea, as fate would have  it … With the parrot.

They stared at  each other with hatred, but did not utter a  word.

This went on for a day… And then  2 days. And then 3 days. Finally on the 4th day, the  parrot could not hold back any longer and  said…

“OK, I give up. Where’s the  bloody ship?”

A young man with his pants hanging half off his rear end, two gold front teeth, and a half inch thick gold chain around his neck; walked into the local welfare office to pick up his cheque.

He marched up to the counter and said, “Hi. You know, I just HATE drawing welfare. I’d really rather have a job.. I don’t like taking advantage of the system, getting something for nothing.”

The social worker behind the counter said “Your timing is excellent. We just got a job opening from a very wealthy old man who wants a chauffeur and bodyguard for his beautiful daughter. You’ll have to drive around in his 2020Mercedes-Benz CL, and he will supply all of your clothes.”

“Because of The long hours, meals will be provided. You’ll also be expected to escort the daughter on her overseas holiday trips. This is rather awkward to say But you will also have, as part of your job, the assignment to satisfy her sexual urges as the daughter is in her mid-20′s and has a rather strong sex drive.”

The guy, just plain wide-eyed, said, “You’re bullshittin’ me!”

The social worker said, “Yeah, well… You started it.” . 

Clarence

XXX

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