- ASX 200 rallies back on possible détente. Up 53 to 6268.
- High 6280 Low 6210. Same as yesterday!
- China hints at talks with Trump on tariffs.
- Banks back. All is forgiven on Byres speech.
- Healthcare/defensives rally hard led by CSL.
- CSL cracks $200 mark. Just.
- Energy stocks fall but could have been worse.
- BHP loses on oil price.
- AUD hit down to 73.81c.
- Bitcoin steady at US$6321.
- Aussie Gold $1685.10.
- US futures up 105.
- Asian markets firmer on China/US talks talk, Japan up 0.46% and China CSI 300 rallies hard +2.08%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – The good, the bad and the ugly. Themes for the coming results season.
- TRADING IDEAS – No new trades. One stop loss raised. CBA – thought about it.
- SMALL COMPANIES – Trade wars bite as we lighten our PLS position and a look at one we have owned and want to again.
- SHL +5.33% broker upgrade.
- AGO – unchanged – production report. Still backs Gina.
- MOC +3.50% new deal for franchisees.
- HUB +6.00% thin volume.
- AGL +2.50% bargain hunting.
- ORG -3.08% swoons on oil and gas inquiry.
- ELD +4.86% bounced off support.
- NEA +5.71% rally continues.
- IVC +2.66% acquisition.
- CWY +1.45% JV with NSW government.
- PLS +4.25% sold a little early.
- APT +4.33% research report from Clime.
- FNP -7.33% profit guidance underwhelms.
- A2M -2.96% question marks on growth.
- VRL -10.96% capital raising weighs.
- ISD -5.29% rally over?
- PPS +14.53% FUM report.
- Z1P +5.73% following APT higher.
- CIM -0.38% contract win.
- AKP +4.93% on 700 shares.
- CVN +13.79% drilling update.
- XRO +3.11% add-ins helping sentiment.
- ATS -1.05% Appendix B.
- SYD -unchanged – marching to the Gonski beat.
- Speculative stock of the day: Orbital (OEC) +42.86% after delivering revenue guidance of $22m with NPAT of $1.8m.
- Biggest risers – HUB, WTC, NEA, SHL, ELD and APT
- Biggest fallers – FNP, FAR, SGF, SIG, BPT and ORG.
- A2 Milk (A2M) –2.96% Trading update. Group revenue for FY18 $NZ922m up 68% on year. A2M expects an EBITDA to sales ratio of 30% for FY19, consistent with the company’s expectations for FY18.
- Sydney Airport (SYD) – ANZ chairman David Gonski to join Sydney Airport board as a non-executive director from late September 2018.
- Praemium (PPS) +14.53% Record annual gross inflows of $3bn, up 50% on year. FUA up 35% on year to $8.3bn.
- Noni B (NBL) -+1.97% Trading update this morning with like-for-like sales up 4.5% with total sales $364m EBITDA now expected to be around $37m. Good progress being made too on the integration of recent acquisitions. A positive update and the market should take comfort from this.
- Mortgage Choice (MOC) +3.50% the board has approved a new broker remuneration model with the commission being raised to a 74% share from 65%. Guidance has been given to $23.2m – $23.4m. Mortgage Choice expects FY2019 cash and IFRS NPAT to be approximately $16.5m.
- Yojee (YOJ) – Fosters Stockbroking has launched a capital raising for $6m at 10c to "further build out Asia Pacific marketplaces, increase leadership in the company’s industry-leading smart technologies such as AI, blockchain, and logistics network interconnectivity as well as expand geographical sales presence" according to the term sheet for the capital raising.
BEST AND WORST
- National Australia Bank has deepened the cut it expects on house prices this year to 1.8% from the 0.8% it forecast in April, and now expects a minor decline next year of 0.1%, in contrast to the 0.8% gain it was expecting in detached dwellings. NAB now expects more severe falls in unit prices this year and next than it was predicting, said any further tightening in credit – whether driven by financial regulation or governance concerns – could further worsen the outlook further.
- AMP raises mortgage rates by 17bps.
- Treasury Secretary John Fraser has resigned. Big surprise.
ASIAN MARKET NEWS
- Yuan sinks to its biggest loss since January 2016 with the PBoC setting the daily reference rate at 6.6726. Will policy makers defend the currency or use the devaluation as a weapon against the US and the tariffs.
- Bank of Korea holds rates at 1.5%
EUROPEAN AND US HEADLINES
- ZTE has cleared a hurdle towards resuming operations in the US, after signing an escrow deal with the US commerce department.
- Broadcom has announced it will buy CA Technologies for US$18.9bn.
- Here is the evidence of the oil shale boom in the US. Rents are through the roof in West Texas.
- Kylie Jenner could be the worlds youngest billionaire surpassing Mark Zuckerberg. Really.
- No longer coming home directly. Now via Zagreb.