Is it me or was November a long month?

End of Day

ASX 200 slipped 17 points to 5440.5 as miners weigh and Asian commodity futures tumble. Banks again tried valiantly to compensate but struggled. Asian markets flat lining with Japan unchanged and China down 0.69%. AUD 74.70c and US Futures down 11.

STOCKS AND SECTORS

  • Resources were the Piñata today as commodity futures tumbled in Asian time zones building on falls overnight. BHP -4.12%, Rio Tinto (RIO) -4.37% and Fortescue Metals (FMG) –5.32% and South 32 (S32) -3.21%.

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  • Base metals stocks were smacked hard too with Mineral Resources (MIN) -3.75% and Independence Group (IGO) -5.30%. Orocobre (ORE) +4.65% managed to buck the trend but for how long? Gold miners were relatively firm against the red backdrop. Evolution Mining (EVN) +2.12%, St Barbara(SBM) +0.45% though Metals Ex (MLX) -8.57% fell heavily again after going Ex-bonus yesterday.
  • Energy stocks fell hard ahead of the increasingly bitter OPEC Talks tonight. Santos (STO) -2.96%, Woodside (WPL) -2.37% and Oil Search (OSH) -2.57%. For those keen 4am is the crunch time for the OPEC statement.
  • Banks once again a shining light with ANZ chief fronting a Reuters QA&A at lunch time. Possibly one of the best CEOs around at this time and not afraid to take the tough decisions. The Big Four Basket (BFB) +145c at $167.26. Insurers and wealth managers slipped with AMP -1.05% continuing to be on the nose. Magellan Financial (MFG) -1.76% and Bell Financial (BFG) -4.05% the worst of the bunch.
  • REITs finding some support, Scentre Group (SCG) +0.71% and Goodman Group (GMG) +1.67%
  • Industrials mixed with some pockets of green piercing through the red blanket. Spark NZ (SPK)+4.23% and TPG (TPM) +2.00% after one analyst said that the issues that ail Vocus (VOC) -4.14% do not mean that TPG is having the same issues. Healthcare still under siege with CSL -0.90% falling again (AGM Tomorrow) as did Ramsay Health Care (RHC) -1.24% and Healthscope (HSO) -2.17%.
  • IT stocks continue to reset with Data#3 (DTL) -4.91%, iSentia (ISD) -3.77% and Adacel Technologies (ADA) -5.14%. Amaysim (AYS) -9.68% held an investor day today. Probably wished they hadn’t.
  • JB Hi Fi (JBH) +3.28% gets a broker upgrade after completing its acquisition of The Good Guys earlier than expected.
  • Speculative stock of the day: 333D (T3D) +92.31% after a ASX speeding ticket and the company confirmed increased interest in 3D printing. There have been a significant media spotlight on the technology in recent weeks.

CORPORATE NEWS

  • Aristocrat (ALL) +0.94% after posting a 69% surge in underlying net profit to $398.2m. The results show the benefit of the first full year of earnings from Video Gaming Technologies. Its full-year profit from ordinary activities after tax rose 88% to $350.5m. Final dividend of 15c a share, unfranked – up 6c.
  • Medibank Private (MPL) unchanged after new chief executive Craig Drummond warned revenue in the first four months of the financial year is below expectations. Operating profit for the 2017 financial year would be “broadly” in line with 2016 result at around $490 million. Membership has declined by 2.5% as more consumers question the value of private health insurance.
  • Ardent Leisure (AAD) -0.93% will reopen its theme parks in time for the school holidays, as its parent company confirms a six-week closure. Ardent has already announced that the Thunder River Rapids ride will be demolished.

ECONOMIC NEWS

  • The WA government will sell 51% of the state’s electricity poles and wires, via a public float, that it estimates could raise more than $11bn.
  • The ABS data released this morning showed total housing approvals fell 13% in October, on a seasonally adjusted basis, with September’s 8.7% decline revised to a 9.6% drop.

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  • But the very volatile high-rise approvals figure showed a monthly decline in October of about 40%, to hit a two-year low.

 

  • NUMBER OF MARRIAGES

    The 113,595 marriages registered in 2015 represent a decrease of 7,602 (-6.3%) from the 121,197 marriages registered in Australia in 2014.

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  • NUMBER OF DIVORCES

    In 2015, there were 48,517 divorces granted in Australia, an increase of 2019 (4.3%) from the 46,498 divorces granted in 2014.

 

  • How is it that the ABS can release good charts for the marriage statistics and absolutely woeful ones for GDP and other important data?

BOND CORNER

  • Australian government 10-year bonds up 3 bps to yield 2.73%
  • 5-year yield 2.25% up 1bps.

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ASIAN NEWS

Proving that speculators are rife and prices are determined more by margin requirements than fundamentals we saw some more big drops in China.

  • May iron ore in Dalian isdown 8%.
  • The most-traded May coking coal futures on the Dalian Commodity Exchange were on track for their biggest one-day loss on record, falling 9% to 1282 yuan ($US186) a tonne.
  • Steel rebar for May delivery on the Shanghai Futures Exchange was down 7% at 3000 yuan ($US436) a tonne, facing its largest ever one-day drop.

Big opportunities maybe set to emerge in Japan as the Parliament debates legislation to legalise casinos. In China it is called the Dalian Futures market. Maybe Packer will get some good news to finish an ‘annus horribilis’.

  • Japanese Industrial production rose slightly by 0.1%
  • Output is forecast to rise 4.5% in November, then fall 0.6% in December.

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EUROPE AND THE US

  • Ex Goldman Sachs banker Steven Mnuchin set to be Trump’s Treasury secretary. Goldman will be happy.
  • Shares in Samsung Electronics hit a record high in Seoul a day after the company pledged to boost its 2016 dividend and said it would consider restructuring in an effort to allay investor concerns over its excess cash and poor governance.
  • In the UK the Brexit decision is starting to hit home as a price rise of over £1,500 on imported cars if no EU trade deal reached.
  • More than a quarter of warehousing let out this year in the UK was to Amazon.

And finally……….apologies in advance for all teh blodes out there but couldnt resist.

Two blondes walk into a bar, the brunette ducks.

A blonde went to JBhi Fi and found a bargain. “I would like to buy this TV,” she told the salesman.

“Sorry, we don’t sell to blondes,” he replied.

The blonde was very angry about this. She hurried home and dyed her hair, then came back and again told the salesman, “I would like to buy this TV.”

“Sorry, we don’t sell to blondes,” he replied.

The blonde did not know how the salesman had recognised her. This time, she got a haircut and new color, a new outfit and big sunglasses. She then waited a few days before she approached the salesman.

“I would like to buy this TV.”

“Sorry, we don’t sell to blondes,” he replied.

Frustrated, she exclaimed, “How do you know I’m a blonde?”

“Because that’s a microwave,” he replied.

 

What do you call an intelligent blonde?

A Golden Retriever.

 

A blonde calls her boyfriend and says, “Please come over here and help me. I have a killer jigsaw puzzle, and I can’t figure out how to get it started.”
Her boyfriend asks, “What is it supposed to be when it’s finished?”

The blonde says, “According to the picture on the box, it’s a tiger.”

Her boyfriend decides to go over and help with the puzzle.

She lets him in and shows him where she has the puzzle spread all over the table.

He studies the pieces for a moment, then looks at the box, then turns to her and says, “First of all, no matter what we do, we’re not going to be able to assemble these pieces into anything resembling a tiger. Second, I’d advise you to relax. Let’s have a cup of coffee, then ………..

“Let’s put all these Frosties back in the box.”

Clarence

XXXX

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NT Markets

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