ASX 200 fights back from 5400, to close down 16 at 5417 as Chinese data cheers. Miners sag but banks provide some comfort. Asian markets mixed as Japan rises 0.2% and China down 0.29%. AUD smidge higher at 75.40c US futures up 42.
STOCKS AND SECTORS
- Banks saved the day with a rally as Australia and New Zealand Bank (ANZ) +0.59% continuing to outperform on a relative basis.
- In REITS Gateway Lifestyle (GTY) +3.42% continued its rally with Galileo Japan Trust (GJT) +1.50% whilst the bulk slipped again. REITS have become the 11th GICS sector to be created from today. They were previously under the financials umbrella. It is the first new GICS created since the system came into being. Must be a sign of the top of the REIT market.
- Insurers were mostly better led by Suncorp (SUN) +0.39% and IAG Australia (IAG) +0.36%. Even health insurers saw some bargain hunting with Medibank Private (MPL) +1.86% and NIB Holdings (NHF) +1.57% finding friends.
- Resources continue to be pressured by falling commodity prices as the USD strengthens. BHP -2.89% ex-dividend today. Base metal stocks came under renewed pressure with Independence Group (IGO)-0.54%, Western Areas (WSA) -5.26% and Iluka Resources (ILU) -3.80%. Gold stocks also fell despite the bullion price unchanged in AUD terms. Newcrest (NCM) -2.25%, Metals X (MLX) -2.97% and Ramelius (RMS) -3.12%.
- Energy stocks were understandably weak following the fall in West Texas Crude last night. WorleyParsons (WOR) -2.45% and AWE -2.16% the worst affected.
- In industrials it was heartening to see the IT sector back in the winner’s enclosure Aconex (ACX) +7.18% led the charge of the tech brigade Altium (ALU) +2.38% followed, as did Mitula Group (MUA) +6.67%.
- Consumer stocks continue to find favour on falling rates Bapcor (BAP) +1.83%, GWA36+% despite going ex-dividend and even Surfstitch (SRF) +34.62%.
- Speculative stock of the day: Realm Resources (RRP) +21.74% continued their run from yesterday after announcing the acquisition of a 70% interest in the Foxleigh coal mine in the Bowen Basin.
- Villa World (VLW) -5.67% after announcing an agreement in principle with Silverstone and within provisions the company has already made.
- ResApp (RAP) +11.11% announced revenue up 262% to $82K and cheered the market
- Wellard (WLD) -15.79% after a poor set on numbers and confidence failing after only 8 months as a listed agri-stock. The company has reported four profit downgrades since it listed in December 2015. Net profit of $14.8 million comparted to earlier prospectus forecasts of $46m. Oops.
- An unusual announcement from Westfield (WFD) -0% today with news the company had acquired the Broadway production company Scott Sanders Theatrical Productions. Founder Scott Sanders will join Westfield as co-creative head of global entertainment. Seems WFD want to give shoppers that old razzle dazzle.
- The Future Fund has delivered a strong 4.6% final quarter performance to increase its assets to $123bn. The return comes despite it holding $26.7bn or 22% of the fund in cash.
- Business investment (capex) fell by 5.4 % in the June quarter, which was worse than economists’ forecasts of a 4.0% drop. Since the coalition win in 2013 business investment has fallen 30%. So much for jobs and growth.
- Next financial year, businesses expect to invest $105.2bn, which is 9.1% lower than the corresponding estimate made at the same time last year
- According to CoreLogic Home Value Index Sydney prices were up 1.5%, while Melbourne prices grew 1.4% over the month.
- Year on year, Sydney price growth of 9.4%. Melbourne is on 9.1%.
- Sydney growth has halved from a recent 18.4% peak to the current annual rate of 9.4%. It was the same in Melbourne.
In China- Good news
- The official Purchasing Managers’ Index (PMI) rose to 50.4 in August, compared with the previous month’s 49.9.
- The official non-manufacturing PMI stood at 53.5 in August, compared to the previous month’s reading of 53.9.
Macau news-Positive news too
- Macau, the world’s biggest casino hub, posted a 1.1% rise in gambling revenue in August, the first positive monthly year-over-year growth in more than two years.
In India and Taiwan
- The Nikkei-Markit manufacturing PMI for India came in at 52.6 in August, up from 51.8 in July and marking an eighth straight month above the 50-point line separating growth from contraction.
- The Nikkei-Markit Taiwan manufacturing PMI rose to 51.8 in August, rising further above the 50-point line delineating growth from contraction after exiting contraction with a reading of 51 in July.
EUROPE AND THE US
Positive start to the European markets. US long weekend coming up.
- Concrete stocks in the US should do well as the hard line from Trump on the wall he wants Mexico to pay for, was once again pushed hard in his latest hard line speech. Good luck with that.
- English Premier League clubs spent more than £155m on transfer deadline day as the summer window outlay reached a record £1.165bn. No salary caps here or any signs of Brexit worries for footballers. The recent domestic TV deal was worth £5.136bn!
A blind man enters a bar and find his way to a barstool.
After ordering a drink, and sitting there for a while, the blind guy yells to the bartender, “Hey, you wanna hear a blonde joke?”
The bar immediately becomes absolutely quiet. In a husky, deep voice,the woman next to him says, “Before you tell that joke, you should know something. The bartender is blonde, the bouncer is blonde and I’m a 6′ tall, 200 pound blonde with a black belt in karate. What’s more, the fella sitting next to me is blonde and he’s a weightlifter. The woman to your right is a blonde, and she’s a pro wrestler. Think about it seriously, mister. You still wanna tell that blonde joke?”
The blind guy says, “Nah, not if I’m gonna have to explain it five times.”
A few quickies!!!
I went to a pub quiz in Liverpool, had a few too many drinks, so wasn’t much use. Just for a laugh I wrote “The Beatles” or “Steven Gerrard” for every answer… Came second.
In a way I’m quite pleased by Brexit. I wish I’d been here before Britain joined the Common Market because, from what I hear, it must have been an absolute paradise. You got to work three days a week… Let’s hope we can all live through that again in the very near future.
What’s a pirate’s favourite dating app? Shiver me tinders.