Thursday 27th July – Australian Market Rap

trump confised

Today’s Headlines

  • ASX 200 up 8 to 5685. Rally fades on close.
  • High 5800. Low 5778. Below average volume again.
  • AUD rises through 80c to 80.45c USD at 14-month low.
  • Fed in no hurry.
  • RBA governor fails to halt rally.
  • Miners lead market higher.
  • Energy stocks weaker. Healthcare too on AUD.
  • MQG broadly in line. Big four tread water. REITs ahead.
  • Insurers pick up ground but wealth managers lose ground
  • Consumer stronger. Shorts covering.
  • AZJ writes off $927m.
  • US Futures up 25.
  • Asian markets mixed with Japan up 0.18% China down 0.32%.

 

STOCK STUFF

  • A2M +7.42% on broker upgrades.
  • SVW +5.96% Caterpillar results driving rally.
  • BAP +4.16% after positive update on Hellaby yesterday.
  • HVN +3.37% shorts covering ahead of results season.
  • LYC +13.64% positive moves on commodities even rare earths.
  • IGO -3.47% negative sentiment following quarterly report.
  • CCL +1.09% buyers returning after horror show period.
  • SUL +2.40% Positive outlook on Amart change to Rebel Sport.
  • BTT -2.69% currency hurting sentiment.
  • JHG -2.08% UK exposure hurting.
  • SDA -3.23% broker caution on recent acquisition.
  • Biggest risers – A2M, SBM, SVW, BAP, NAN and HVN.
  • Biggest fallers – HTA, IPH, CKF, BSL, SDA and BIN.

TODAY

  • Fortescue (FMG) +1.13% has released their production numbers for June this morning, the company has reported shipments of 44.7mt of iron ore and cash production costs of $12.16/wmt. Guidance for FY18 has also been provided, with a further reduction in costs to US$11-12/wmt and continuing shipments of 170mt.
  • Beach Energy (BPT) -1.44% has put out new capital expenditure and production guidance this morning. FY18 Capital expenditure is expected to come in around $220-260m and production guidance is expected to come in around 10-10.6mmoe. The company has also highlighted record full year production of 10.6mmoe, up 9% from the previous year.
  • Macquarie Group (MQG) +1.20% has announced solid first-quarter earnings, and kept annual profit guidance unchanged. Macquarie’s chief executive Nicholas Moore said earnings this financial year would be “broadly in line” with 2017.
  • Aurizon (AZJ) -0.20% said full-year earnings will be hit with $927m worth of impairments and restructuring costs. Aurizon said that it would post underlying earnings before interest and tax of $836m for the 2016-17 year, in line with its revised April guidance of EBIT of $800m to $850m.
  • Kogan (KGN) – unchanged- has struck a three-year deal with Hollard Insurance to offer home, contents, landlord, car and travel insurance to its online customers.
  • GUD Holdings (GUD) -2.22% has reported it lost money for a second year in a row, after the sale of two businesses over the 2017 financial year knocked $58.9m from the company’s bottom line. EPS rose to 60.5c from 54.9c, while the final dividend was lifted to 25c per share from 23c a year earlier.

ECONOMIC NEWS

  • The export price index dropped 5.7% over the quarter, reflecting drops in commodity prices, which hit their trough towards the end of June, while import prices fell 0.1%.

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  • The team at ANZ have predicted that the increasing cost of power will affect consumer spending. According to the analysts, Australian households are facing a 10% jump in electricity bills and a 5% rise in gas Just as well inflation is under control Tolls up, health insurance up but at least apples are cheaper.
  • ANZ’s economists said that spending on electricity, gas and other fuels is already growing at the fastest rate of any category, up 3.5% in the March quarter and up 11.2% annually.

BOND MARKET UPDATE

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ASIAN NEWS

  • Hong Kong based trader Nobel Group’s Singapore-listed shares have fallen as much as 49% after warning of a quarterly loss of $1.8bn. The company said it is abandoning its ambitions in global commodities trading and falling back on its Asian roots in a last-ditch effort to survive.
  • The Japanese government recommended this year’s minimum wage be increased by 25 yen to 848 yen per hour (+3.0%), the same amount that it was raised last year.

wagews

  • Samsung’s quarterly profit and revenue topped analysts’ estimates, fuelled by the success of its new Galaxy S8 smartphones and demand for semiconductors. Net income rose to a record 10.8 trillion won exceeding the 9.75 trillion won average of
  • Indian Sensex closes at a new record on corporate optimism. Banks at highest in 15 years.

EUROPE AND US MORNING Headlines

  • Super Thursday in Europe. Results avalanche with companies worth around US$3 trillion reporting. Pharmaceutical giants Roche Bayer and AstraZeneca are on the agenda, along with telecommunications providers Orange, Telefonica and Telecom Italia and transportation giants Volkswagen, Airbus and Fiat Chrysler. Consumer stocks to report include AnheuserBusch InBev, Nestle SA, Danone, Diageo Plc and British American Tobacco Plc, along with a trading update from Britvic Plc.
  • Airbus SE reported a 27% drop in second-quarter profit as it cut production of its slow-selling A380 superjumbo.
  • Theresa May has lost her director of strategy joining colleague co director, Nick Timothy in resigning. Think Oscar Wilde had something to say about this. ’To lose one strategist may be regarded as misfortune; to lose both looks like carelessness’.
  • Goldman Sachs boosted its iron ore forecasts after better-than-expected demand in China raised prices, but combined the revised outlook with a warning that it remains bearish on next year on prospects for plentiful mine supplies and a worldwide glut. The three-month forecast was raised to US$70 a metric tonne from US$55, and the year-end target raised by US$5 to US$60 a tonne.
  • Facebook mobile advertising business grew by more than 50%. 2bn active users with revenue of US$9.28bn up 44.8%. Mobile advertising revue was up to nearly US$8bn.

And finally……Thanks to my friend Hans as usual for quality gags!!

LEXOPHILIA – WHO ON EARTH DREAMS THESE UP?

A lexophile of course!

  • How does Moses make tea?   Hebrews it.
  • Venison for dinner again?   Oh deer!
  • A cartoonist was found dead in his home.  Details are sketchy.
  • I used to be a banker, but then I lost interest.
  • Haunted French pancakes give me the crêpes.
  • England has no kidney bank, but it does have a Liverpool.
  • I tried to catch some fog, but I mist.
  • They told me I had type-A blood, but it was a Typo.
  • I changed my iPod’s name to Titanic. It’s syncing now.
  • Jokes about German sausage are the wurst.
  • I know a guy who’s addicted to brake fluid, but he says he can stop any time.
  • I stayed up all night to see where the sun went, and then it dawned on me.
  • This girl said she recognized me from the vegetarian club, but I’d never met herbivore.
  • When chemists die, they barium.
  • I’m reading a book about anti-gravity.  I just can’t put it down.
  • I did a theatrical performance about puns.  It was a play on words.
  • Why were the Indians here first?  They had reservations.
  • I didn’t like my beard at first.  Then it grew on me.
  • Did you hear about the cross-eyed teacher who lost her job because she couldn’t control her pupils?
  • When you get a bladder infection, urine trouble.
  • Broken pencils are pointless.
  • What do you call a dinosaur with an extensive vocabulary?  A thesaurus.
  • I dropped out of communism class because of lousy Marx.
  • All the toilets in New York’s police stations have been stolen.  The police have nothing to go on.
  • I got a job at a bakery because I kneaded dough.
  • Velcro – what a rip off!
  • Don’t worry about old age; it doesn’t last.

Clarence

XXX

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NT Markets

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