ASX 200 rose 3 points to 5230 in a lacklustre session as it oscillated between positive and negative. Materials, energy and telcos better as banks tread water ahead of jobs number. In Asia, Japan slid 0.65%, China down 0.57% and Hong Kong down 0.98%. AUD trades at 75c with US Futures down 29 points.

Waiting for Godot. Non-Farm Payrolls tonight.

waiting-for-godot-stc-2013-hugo-weaving-richard-roxburgh-3--lisa-tomasetti

For the week the index has fallen from 5246 to 5230 or 0.45%. Gold stocks the big winners, with banks the losers.

STOCKS AND SECTORS

  • Miners proved resilient despite some slippage in commodity prices overnight and a fall in the oil price. BHP -0.16% but base metals were sought after again with South32 (S32) +5.17% and Orocobre (ORE) +3.83% recovering.
  • Gold miners moved to profit taking mode with Evolution Mining (EVN) -1.68% and Oceana Gold Corp (OGC) -4.74%. Ramelius Resources (RRL) +2.76% and Dacian Gold (DCN) +1.43% continued their rally though.
  • Another strong day for Whitehaven Coal (WHC) +10.16% as it continues its stellar run from lows of 40c in mid-Feb. Other energy stocks were surprisingly positive given falls with Beach Petroleum (BPT) +2.42% and Woodside Petroleum (WPL) +0.23%
  • Financials were muted with measured moves following the credit rating news yesterday. Standout was UK based Clydesdale Bank (CYB) +3.5% as European banks posted gains overnight. Wealth managers with UK exposure also rallied after a week of losses with BT Investment (BTT) +3.67% though Magellan Financial (MFG) -0.48%.
  • Industrials were mixed with consumer stocks higher Premier Investments (PMV) +1.26% RCG Corp (RCG) +1.69% and recent IPO Kogan (KGN) +1.00% bouncing after a disastrous start yesterday Michael Hill (MHJ) -4.00% fared worst however. Tabcorp (TAH) -2.05% continued to suffer as the ramification of the ban on Greyhound racing in NSW are factored in. Cimic (CIM) +4.13% recovered slightly after the collapse yesterday on MS broker downgrade.
  • Speculative stock of the day: Hot Chilli Ltd (HCH) +28.57% following a $4.4m placement to further advance the high grade Sierra Zapallo at Productora in Chile.

CORPORATE NEWS

  • IOOF (IFL) +0.99% ASIC will take no formal action despite an inquiry finding “a number of concerns” relating to the governance at the company and its corporate culture finding concerns on its compliance conflicts of interest and staff trading policies amongst other things.
  • Sandfire Resources (SFR) -0.19% has announced record annual copper production for FY16 of 68,202 tonnes. The company has now repaid $330m of a $380 m facility to fund their DeGrussa project.
  • Silver Lake (SLR) -1.54% has achieved guidance with gold sales around 132,400 ounces and an average price received of $1580 per ounce. Cash and bullion was $42,5m with all bank debt repaid.
  • AWE/Santos (AWE) -1.18% (STO) +0.21% announced they had completed all operations relating to their AAL-4XSTI appraisal well and the jack up rig was released on 7th July.
  • WiseTech Global (WTC) Unchanged, has increased its strategic holding in SoftShip AG to 43% from 19.9%. SoftShip is a German listed company providing logistical software solutions to the sea freight industry.
  • Telstra (TLS) +0.18% has laid off hundreds of customer service and management staff from its call centres around the country and will offshore more work to the Philippines. 326 staff would be affected according to the company.

ECONOMIC NEWS

  • The Department of Industry, Innovation and Science cut its 2016 price forecast for iron ore by nearly 2% to well under current prices, citing concerns over slowing growth in demand and said it sees little change in 2017. The department now sees iron ore averaging $US44.20 a tonne this year versus a $US45 forecast in March and a December forecast of $US40.40.
  • Iron ore may average about $35 a ton through the remainder of the year and in 2017, S&P Global Ratings said yesterday as it downgraded the credit watch outlook on Australia’s AAA credit rating to ‘negative’ from ‘stable’.

ioooss

IN ASIA

In China

  • China’ foreign exchange reserves in June unexpectedly rose US$13.4 billion to US$3.21 trillion. rebounding from a 5-year low in May.
  • Foreign exchanges reserves stood at $3.21 trillion at the end of June
  • Passenger-vehicle sales rose 19% to 1.7 million units in June
  • Sales climbed to 10.8 million units in first half of 2016
  • Deliveries of new-energy vehicles surged 126% to 86,374 units in the five months through May, according to the association web site.

In Japan

  • Voters head to the polls on Sunday for an upper-house election that Prime Minister Abe hopes will give validation for his economic policies.
  • Aeon Co., the nation’s biggest retailer by sales, reported its worst first quarter in eight years, a 6.3 billion yen ($62 million) loss. Other retailers pledge to offer cheaper products, stoking deflation fears again.

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EUROPE AND THE US

  • US non-farm payrolls tonight with expectations of around 180,000 jobs created last month. The 38,000 created in May led to a cut in expectations to a Fed rate rise this year to 12%.
  • The UK Treasury made no plans for Brexit, says new head Tom Scholar as UK consumer confidence plunged to its worst level in 21 years. GfK conducted a consumer confidence survey after the Brexit vote and found a drop of eight points to minus nine, a drop not since seen December 1994.
  • 60% of UK consumers expect the general economic situation to worsen over the next year, compared with 46% in June. Just 20% expect it to improve, down from 27% last month.
  • BDO’s monthly High Street Sales Tracker showed a strong start to June, up 3.8% year on year. By the end of June, post Brexit vote, sales had fallen by 8.1% compared with last year.
  • The UK money markets are now pricing in a 78% chance of a rate cut next week.
  • RBS and Lloyds Bank upgraded by analysts as they see the bottom in sight.

 

And finally……

A man calls 000 and says “I think my wife is dead”. The operator says, “How do you know?” He says “The sex is about the same, but the ironing is piling up!”

OFFSPRING

Ah, children. A woman knows all about her children. She knows about dentist appointments and romances, best friends, favorite foods, secret fears and hopes and dreams.

A man is vaguely aware of some short people living in the house.

 

Clarence

XXXX

mt_tryforfree

NT Markets

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