- ASX 200 down 6 to 6235 as rally fades on weak banks.
- High 6270 Low 6231. Cautious trade ahead of data dump beginning.
- For the week the ASX 200 has fallen from 6300 to 6235 or around 1%.
- Banks under pressure from ScoMo headlines.
- Big miners struggle on commodity falls.
- Healthcare and staples do better.
- AUD lower at 73.63c on better retail sales.
- Bitcoin weaker at US$7303.
- Aussie Gold falling to $1638.
- US futures down 13.
- Asian markets weaker with Japan down 0.54%% and China falling another 0.33%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – Catching up on the MT Portfolio after a busy week at the AIA. A few issues handled.
- TRADING IDEAS – No new trades. Stopped out of one trade. A few interesting buy and sell signals.
- SMALL COMPANIES – Two new stocks added to the portfolio this morning and a look at a broker’s best for 2019. Plus, the Dog Basket is barking madly.
Movers and Shakers
- CVN +10.23% drilling report.
- ALL +1.87% hits jackpot.
- APX +6.54% tech rebound.
- TCL +0.86% bucks reports of potential capital raising.
- PLS +6.51% DFS leads to expansion greenlight.
- APX +6.54% tech stocks bouncing.
- KGN +5.27% buyers return. Amazon flop again.
- LOV +3.29% broker upgrade.
- CVW -0.96% broker downgrades.
- AAD -1.37% broker downgrade.
- HVN -1.70% no cheer from retail numbers.
- LNG +19.85% stirring.
- GOR -5.15% starting to look interesting.
- RAP +12.50% trial now fully enrolled and Morgans upgrade.
- BLA +20.78% recovery continues in dog basket.
- AVZ -7.69% punters taking profits.
- MLX -6.15% copper pricing weighs.
- AXP +31.31% capital raising.
- Speculative stock of the day: Great Boulder +20.51% livewire markets article highlights Mt Venn Cu-Ni results pending.
- Biggest risers – CVN, APX, PLS, FNP, EHL, APT and XRO.
- Biggest fallers – GOR, LYC, CDD, MAH, AHG, GEM and RSG.
- Nib holdings (NHF) -0.36% To acquire QBE’s travel insurance business for $25 million. Nib says the buy is expected to be immaterial to EPS. One-off transaction and integration costs of $11m.
- AirXpanders (AXP) +31.31% Announced a capital raising of around $20.3m, by way of placement and underwritten pro-rata, non-renounceable rights issue.
- A2Milk (A2M) +0.84% A2M has bought another 8.3% of SM1 at a price of NZ 1090c. It now holds a 17.39% with no plans to increase its holding from here.
BEST AND WORST
- Australian retail turnover rose 0.4% in June 2018. "Food retailing (0.4%) led the rises Clothing, footwear and personal accessories rose 1.7% following a 2.3% rise in May."
ASIAN MARKET NEWS
- Japan is now the world’s second biggest stock market. It lost its place in 2014 but has roared back after recent Chinese index falls.
- The Shanghai Composite Index has lost more than 16% in 2018 to be among the world’s worst performers, while the yuan has fallen 5.3% against the dollar.
- Chinese reminbi hit again. China’s services sector growth slowed again in July as business confidence fell to a near-record low amid the current trade war.
- Tencent sinks (sorry Charlie) as analyst cut price targets, earnings estimates but keep ‘BUY’ rating despite all this. Not a single ‘SELL’ rating from anyone since 2014. Up 49,000% since listing in 2004. Second quarter results die August 15th.
- Heineken has entered into a non-binding agreement with Chinese brewer China Resources Beer in a US$3bn tie-up to tap the China’s premium beer market.
- Big global pharmas are now bypassing the US as they launch first in China. Both AstraZeneca and Eli Lilly are hitting China up with new drugs before US. All part of a push from China to dominate in the pharmaceutical market. A rule change last October meant that US companies could release in China without separate trials. Good enough for FDA good enough for China. Big Boost.
Something that Craig Drummond at MPL can only dream of.
- One reason for the increased focus on health is the ageing population. One child policy had unintended consequences.
EUROPEAN AND US HEADLINES
- European markets expected to open higher. FTSE up 43, DAX up 44 and CAC up 27.
- Apple first amongst equals topping US$1 trillion market cap.
- UBS says that Bitcoin needs to hit US$213,000 before it replaces money.
- Sign of things to come as some airport passport controls suffer three-hour queues. EU maybe showing signs of a softer position on the Irish question. Would help May.
- UK rate hike to hit home loans. Highest UK interest rates since 2009.
- Amazon UK pays just GBP4.6m in tax despite revenues of GBP2bn.
- US jobs tonight. The big one.