ASX 200 drops 46 points to 5469 as Yellen speech sinks in. Banks and miners led across the board losses as outlook clouds and rates back in focus. Asian markets positive with Japan up 2.29% and China down 0.16%. AUD 75.50c and US futures down 6 points.
STOCKS AND SECTORS
- Banks slipped around 1% as the rate outlook muddied. Insurers and wealth managers also fell away. Macquarie Group (MQG) -0.73%, Magellan Financial (MFG) -1.65% and Platinum Asset (PTM) -2.91%. REITS also in profit taking mode with Westfield Corp (WFD) -1.44% and Mirvac Group (MGR) -0.43%.
- Big miners holding despite US rates rising now seem more likely depending on the jobs number this Friday. BHP +0.24%, RIO -0.61% and Fortescue Metals (FMG) -0.2%. Gold stocks got ambushed today as the Evolution Mining (EVN) -9.03% issue was bedded down. The hot air may well be leaving the sector as US rates are back on the agenda after the summer hiatus.
- Energy stocks sold off after Woodside (WPL) -2.83%, Origin (ORG) -2.41% on its first gas sales from Waitsia and New Hope Corp (NHC) -4.22%
- Industrials lower as the spectre of higher US rates takes the gloss off utilities and other yield plays. Spark Infrastructure (SPK) -1.07%, Duet Group (DUE) -1.87% and APA Group (APA) -1.47%.
- IT and telcos in trouble today. Mitula (MUA) -5.17%, Aconex (ACX) -4.14%, Altium (ALU) -1.59% and Senetas Corp (SEN) -11.54%. Telstra (TLS) +0-57% stayed strong but Vocus Coms (VOC) -2.75% and TPG (TPM) -1.45%. Audio Pixels (AKP) -8.62% continued its fall from grace after today’s results showing another loss of $4.7m.
- Speculative stock of the day: Eden Energy (EDE) +22.22% following an announcement that EdenCrete will be added to the state funded highway slab replacement in Georgia US.
- The sale of Masters by Woolworths (WOW) -0.76% has hit a speed bump after its US partner Lowe’s has taken WOW to court alleging it had wrongly attempted to terminate the JV and asked a court to appoint a liquidator to oversee a windup.
- The award to worse float of the last 12 months must surely go to Temple and Webster (TPW) -7.89% after reporting a huge $44.4m loss more than twice the loss forecast in the prospectus. Temple & Webster listed last December after raising $61m with $21m going back to early stage investors.
- Vying for worse recent float though is McAleese (MCS) which today was suspended and placed into voluntary administration.
- Ridley Corporation (RIC) -1.78% reported annual profits by 30.4% to $27.6m. Revenue up 0.5% to $912.6m. The company declared a final dividend of 2.5c, fully franked, up from 2c.
- Jamie Packer has sold 4.8% of Crown Resorts (CWN) -1.48% to a range of institutions at 1280c. He has also stepped down as chairman of Melco Crown. Packer wants to concentrate on the Sydney casino and a IT venture capital business in Israel.
- Evolution Mining (EVN) -9.03% has raised $311m through its 2-for-15 rights share offer to its institutional shareholders at 205c. Around 86% of existing shareholders took up the new stock.
- Estia Health (EHE) -16.67% missed their own revised guidance with EBITDA down 2.4% below forecasts and net profit fell 8.9%. Estia’s fiscal 2017 guidance of at least 13 % EBITDA growth also materially missed consensus that was expecting 29 % growth.
- Auckland Airport (AIA) +2.46% reported a 17.4% lift in after tax profits to $262.4m. Passenger numbers for the year increased 9.1 % to 17.3m, with international passenger numbers slightly ahead at 8.8m. Final dividend 9c.
- Housing Industry Association (HIA) reported new home sales slumped 9.7% in seasonally adjusted terms, completely reversing the 8.2% gain seen in June. The association is warning of even further falls to come over the coming two years.
- In the month of July 2016 detached house sales fell in all five mainland states, after rising everywhere in June. Sales dropped by 12.6 % in South Australia and were down by 8.7% in Queensland, 8.2% in Western Australia, 6.2% in NSW, and 6.0% in Victoria.
- China’s stores of steel rose in August by the most in four months, lending further urgency to recent restatements of Beijing’s goal to cut overcapacity. Stocks of steel rose 2.13 % in August compared to a month earlier to a total of 7.97m tonnes.
- Typhoon Lionrock is projected to make landfall in Japan in the next day or two and could strike near Tokyo.
EUROPE AND THE US
Bank holiday in the UK – Rest of Europe weaker
- The EU’s long-planned Transatlantic Trade and Investment Partnership (TTIP) with the US has collapsed with negotiations showing no sign of progress despite three years’ of talks, according to Germany’s economy minister.
- More from the Germans. Sigmar Gabriel, the vice-chancellor has warned the future of the EU could be in doubt if the UK’s exit is handled badly. He said the EU would go “down the drain” if other states followed Britain’s lead and that the UK could not keep the “nice things” about Europe while taking no responsibility.
Since Brexit and now Jackson Hole, the rate rise risk has increased substantially.
And finally……….thanks Hans…keep them coming sports fans..
A man boarded an aircraft at London’s Heathrow Airport Terminal 5 for New York, and taking his seat as he settled in, he noticed a very beautiful woman boarding the plane.
He realised she was heading straight toward his seat and bingo – she took the seat right beside him.
‘Hello’, he blurted out, ‘Business trip or vacation?’
She turned, smiled enchantingly and said, ‘Business.
I’m going to the annual nymphomaniac convention in the United States ..’
He swallowed hard. Here was the most gorgeous woman he had ever seen sitting next to him, and she was going to a meeting for nymphomaniacs!
Struggling to maintain his composure, he calmly asked, ‘What’s your business role at this convention?’
‘Lecturer,’ she responded. ‘I use my experience to debunk some of the popular myths about sexuality.’
‘Really’, he smiled, ‘what myths are those?’
‘Well,’ she explained, ‘one popular myth is that African-American men are the most well endowed when, in fact, it’s the Native American Indian who is most likely to possess that trait. Another popular myth is that French men are the best lovers, when actually it is the men of Greek descent. We have also found that the best potential lovers in all categories are the Irish.’
Suddenly the woman became uncomfortable and blushed. ‘I’m sorry,’ she said ‘I really shouldn’t be discussing this with you, I don’t even know your name!’
‘Tonto,’ the man said. ‘Tonto Papadopoulos, but my friends call me Paddy.’