- ASX 200 rises to a decade high again up 57 to 6272.
- High 6273 Low 6219. Volume lighter ahead of the weekend.
- Trade tariffs kick in as expected. The world doesn’t end. Sellers take a holiday.
- Big four lead advances as RC finishes.
- Resources join the party. Energy solid.
- Even TLS catches a bid.
- AUD stronger at 74.05c.
- Bitcoin eases to US$6511.
- Aussie Gold $1695.
- US futures celebrate opening salvo up 51.
- Asian markets rally as war kicks off. Japan up 0.92% and China CSI 300 up 1.12%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – Trade War begins to bore. BUY HOLD SELL – CWP as an income stock.
- TRADING IDEAS – No new trades. Two stop losses raised.
- SMALL COMPANIES –Resource stocks taking their toll as 2 pm tariff deadline looms. Chinese deleveraging hurting commodity prices. We also have an industry insight on Fund Managers and PPT in particular.
Movers and Shakers
- ELD -15.35% the ongoing drought surprises. Not sure why.
- COE +8.45% Sole – 3 report.
- AAC +2.45% ELD comments cheer.
- PLS +3.31% bargain hunters.
- MSB +2.98% buyers snap up.
- ISD +12.14% reaffirms guidance and new CEO.
- WHA -1.64% profit-taking.
- CSL -0.07% can’t quite make it.
- ALL -0.96% profit-taking.
- WES +1.55% the beat goes on.
- ASX -1.97% broker downgrades.
- NEC +4.08% analogue is back.
- BSL +3.17% broker upgrade.
- Speculative stock of the day: Symbol Mining (SL1) +24.14% huge volume as mining lease approved and commenced at Macy Zinc project in Nigeria.
- Biggest risers – COE, SBM, DCN, AJM, NWL and NEC.
- Biggest fallers – ELD, SHV, CLQ, NHC, WBA, WGX and ING.
- St Barbra (SBM) +7.53% achieved record quarterly production in 4Q to 119,436oz taking full-year production to 403,089oz, beating the top end of FY18 guidance of 392,000oz and cracking 400,000oz for the first time. SBM also highlighted its strong balance sheet with $344m cash on hand and no debt.
- Elders (ELD) –15.35% reiterated its FY18 guidance after market commentary on dry weather and cattle price declines. FY18 EBIT to be between $70-$74m ($71m in FY17), NPAT to be between $59m-$63m ($58.4m in FY17). The results are driven by maintained high levels of sheep and wool demand and prices.
- iSentia (ISD) +12.14% A new CEO has been announced in Ed Harrison. The company has also reaffirmed guidance given recently of $32-$36m EBITDA with results on August 23rd.
BEST AND WORST
- UBS economists have joined the list of analysts forecasting that the RBA will keep rates on hold until 2020. Welcome to the pack.
- The borrowing capacity of Australian property investors has contracted 20% over the past three years, according to more research by UBS. Borrowing capacity could shrink by 30% if the royal commission recommends a "more strict" responsible lending regime.
ASIAN MARKET NEWS
- HNA has announced that co-chairman Chen Feng will absorb the duties of his colleague Wang Jian, who died in a fall in France this week.
- Xiaomi’s highly-anticipated IPO in Hong Kong drew nearly ten times more applications for share purchases than what it made available for retail investors. Priced cheap but looks a struggle.
- Shanghai-listed energy and petrochemical group Wintime Energy defaulted on a bond payment on Thursday, putting US$3.9bn in outstanding bonds at risk.
EUROPEAN AND US HEADLINES
- Trump does what it says on the box. Tariffs rise and more to come perhaps, with threats of $500bn more.
- Merkel winds back talk of car tariff agreement. Must conform to WTO.
- "The world has never been so indebted – even more than before the 2007 crisis – and this debt has never been so risky," said the Autorité des Marchés Financiers (AMF) in its annual report. The AMF is France’s Chien de Garde.
- UK Brexit showdown again this weekend at Chequers. Euro-sceptics not happy with proposed rules on goods. 266 days to go.
- Next on the list of US products under threat in EU, Heinz Tomato Ketchup. Is there no end to this horror?
- Smart TVs are monitoring what people watch to send targeted ads to other devices in their homes, it has emerged. Time to reread George Orwell.
- It’s coming home. England plays Sweden on Saturday at midnight. Never have so many, hoped for so much, from so few.
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