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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 11/07/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

Today’s Headlines

  • ASX 200 drops 42.5 points to 6216 on trade war escalation.
  • High 6256 Low 6210.
  • Banks hit again as APRA chief talks turkey.
  • Resources pummelled by China talk and falling Asian commodity prices.
  • TLS marches all the way down again.
  • AGL hit by ACCC tough talk from Sims.
  • AUD falls hard to 74.07c.
  • Bitcoin eases to US$6337.
  • Aussie Gold $1687.90.
  • US futures whacked down 226.
  • Asian markets hit on trade woes, Japan down 0.83% and China CSI 300 down 2.50%.

FUTURES AND HIGHS AND LOWS

MT STUFF

  • MARCUS CALL - The ones that got away. A couple of growth stocks we missed. One going up the other going down.
  • TRADING IDEAS - One stop loss raised. No new trades.
  • SMALL COMPANIES - Why we are taking profits in PLS and a glance at the banking sector. One new insight and a look at some stocks in the news.

POINTS

STOCK STUFF

Movers and Shakers

  • AGL -6.95% ACCC investigation hurts big time.
  • COE +3.80% bucking the trend as buyers follow Sole 3 news.
  • FLT +3.79% taking off.
  • NEA +3.70% broker upgrades.
  • PDL -4.71% identity crisis.
  • SHV -4.68% sell off continues. 
  • ISD +1.19% trundles higher.
  • APX -4.37% Morgan Stanley cuts recommendation.
  • ALU -4.94% trouble in paradise.
  • CTD - Loftus Travel Group acquisition. Guidance at upper end. May be a disappointment.
  • LYC -4.98% rare earth price falls on trade wars. It’s on the list though.
  • Speculative stock of the day: Vivid Technology (VIV) +20.00% following an announcement with its technology partner Origin, to deliver lighting-as-a-service to business customers. Big volume. At least for this one.
  • Biggest risers – FAR, FLT, NEA, CLQ, FSF and SSM.
  • Biggest fallers – AGL, LYC, ALU, PDL SHV and APX.

TODAY

  • Resolute Mining (RSG) –1.82% Received all government approvals to allow the use of new technology, processing strategies and schedules at the Ravenswood Expansion Project. This has extended the mine life by 3 years to 2032, reduced capital expenditure for FY19 to only $33m and established the life of mine average production at approximately 115,000oz pa of gold. The company has said this solidifies the mine as a long life, low-risk, low cost project.
  • The Hydroponics Company (THC) +2.65% Has appointed Ken Charteris, an experienced biotech and pharmaceuticals executive as Group CEO. The company has also formed a Medical Cannabis Leadership Team led by Andrew Beehag.
  • Corporate Travel Management (CTD) – Has been placed in a trading halt pending an announcement.
  • Village Roadshow (VRL) – Will remain in a trading halt pending an announcement. Directors and management taking a pay cut.
  • Dacian Gold (DCN) – Has been placed in a trading announcing an equity raising of $37m with the possible oversubscription of up to $3m. Funds from the institutional placement will be used to extend the Westralia mine and increase exploration at Cameron Wall. The offer is for 13.7m shares at 270c, a 10% discount to the last close price.
  • Viva Energy (VEA) - The IPO has been priced at 250c at the bottom end of the range. It has raised $2.65bn. Feeling underwhelmed.
  • Scentre Group (SCG) -0.67% bought a 50% stake in Westfield Eastgardens in Sydney's south-east from the Saunders family's Terrace Tower Group for $720m.

BEST AND WORST

ECONOMIC NEWS

  • The Westpac Melbourne Institute Consumer Sentiment Index jumped 3.9% MoM to its highest reading since November 2013, hitting 106.1. This was driven by positive expectations of the economic outlook over the next 12 months (+3.9%) and 5 years (+9.8%).
  • Australian home loans came in +1.1%, surpassing expectations of -0.2%. Investment lending slipped 0.1% whilst owner-occupier loans were up 0.7%.

  • The ACCC has made 56 recommendations to fix Australia's broken electricity market, pushing for measures that could slash households' power bills by a quarter. “The National Electricity Market is largely broken and needs to be reset,” ACCC chairman Rod Sims said. Bad for AGL-6.95% and ORG-3.6%
  • Tariff wars: To give you an idea of what is on the tariff list click here for the full announcement. 200 pages. One for every billion.

ASIAN MARKET NEWS

  • China retaliates. It has talked about taking the US to World Trade Organisation (WTO) and asked other trading partners to sign on to free trade. So much for an ‘Art of the Deal’ negotiating tactic. Looking forward to the next Treasury auction.
  • Japan’s Producer Price Index (PPI) was in-line with consensus, managing a 2.8% increases year on year adding to the strong uptrend set by last month’s +2.7% increase.

EUROPEAN AND US HEADLINES

  • The new list of goods to face 10% punitive duties includes frozen meats, live and fresh fish and seafood, butter, onions, garlic and other vegetables, fruits, nuts, metals, and a massive list of chemicals, as well as tyres, leather, fabrics and even rare earths. 
  • Elliott Management plans to inject EUR50m of equity capital into AC Milan, one of Europe’s most successful football clubs, after the club’s former Chinese owners failed to repay its debt obligations to the New York-based hedge fund.
  • Another win for Trump as Pfizer has delayed price rises after a discussion with the President. Viagra included.
  • Tesla to move production to China. Easier for them to steal the technology there.
  • From one Donald to another ‘Appreciate your allies’. Europe is next to kick off. Will we have 'USEXit' from NATO? A rocky few days in store.
  • More Tories quit. UK consumers buy 18% of their stuff online. Double their American friends.
  • The trade war just got real.
  • UK punters will spend GBP50m backing England and drink an extra 10m pints of beer tonight. 22m people will watch the match. And it's only the semi-final.
  • It’s coming home.

ANNOUNCEMENTS

MARKET MAP




View More Articles By Henry Jennings

Henry Jennings has been involved in financial markets for over 35 years as both a trader and a broker in London and Sydney.

Starting his career in London trading derivatives and moving to Australia in 1989, Henry eventually settled at Macquarie Group, rising to become a Divisional Director responsible for Equity Trading in Australia. For the last decade, Henry has been involved in private client broking and now writes exclusively for the renowned financial newsletter Marcus Today. Henry regularly appears on ABC TV and Sky Business as a market analyst, commentator and strategist and has presented at various conferences most recently for the AIA on the Gold Coast.

To gain further insights from Henry Jennings, Marcus Padley and the Marcus Today team of analysts, click here to register for a free trial of the Marcus Today daily newsletter.



Important note: Any financial product advice contained in this email is general financial product advice only and does not take into account any one person's objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.
 

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