Yo peeps!

ASX kicks another 33 points to 5854 as banks and miners lead the charge into the French elections. Coca Cola loses its fizz on local sales issues. Asian markets modestly higher with China up +0.15% and Japan up 0.81%. AUD solid at 75.29c and US Futures down 7 points.

For the week, our market has slipped from 5889 to 5854 down 0.6%.

  • The Big Bank Basket slid from $185.99 to $184.87
  • BHP dropped from 2431c to 2404c
  • RIO (RIO) up from 5915c to 6024c
  • Telstra (TLS) up from 422c to 423c

STOCKS AND SECTORS

  • Miners had a good day after the iron ore prices turned a corner yesterday. BHP +1.65%, RIO +2.68% and Fortescue Metals (FMG) +5.21%. A good solid bounce from base metal stocks led by South32(S32) +2.21%, Iluka Resources (ILU) +4.91%, Alumina (AWC) +1.12% and Independence Group (IGO) +4.43% out of the dog house at least for the time being.
  • Energy stocks mixed as Woodside (WPL) -0.65% suffered after the production report yesterday. Caltex (CTX) +0.86%, Origin Energy (ORG) +0.82% and Oil Search (OSH) +0.70%. Coal miners picked up with Whitehaven (WHC) +1.06% and New Hope (NHC) +%.
  • Gold miners modestly higher Newcrest (NCM) unchanged, Northern Star (NST) -0.43%, Evolution Mining (EVN) +1.26% and Westgold (WGX) +0.49%.
  • Industrials slightly easier as Brambles (BXB) -0.91% and Sydney Airport (SYD) -2.02% fell away as the decision looms for the second airport and the government starting earthworks. Positive numbers too for the gaming stocks as Crown Resorts (CWN) +0.25%, Aristocrat Leisure (ALL) +1.48% and Jumbo Interactive (JIN) +7.96%.
  • Healthcare mixed CSL +0.38%, Resmed (RMD) -0.87% and Fisher and Paykel (FPH) -1.66%.
  • Banks and financials better again with the Commonwealth Bank raising rates again on both owner occupier and investor loans. Interest only investment loans are set to rise 0.5%. Three-year fixed rate interest-only investment loan rates will rise by 0.5% to 4.94%. The Big Bank Basket rose to $184.87 with insurers better IAG +0.83% and QBE Insurance (QBE) +0.56%. Wealth managers modestly better with Macquarie Group (MQG) +0.99% after snagging the Green Investment Bank in the UK.
  • Telcos easier today after a volatile week as the chief strategy officer at Vodafone questioned the ability of TPG Telecom (TPM) -2.15% to build a fourth network for the $600m it had planned. Vocus (VOC) -3.23% resumed its decline and Telstra (TLS) -0.47% in profit taking mode.
  • Speculative stock of the day: MaxSec (MSP) +42.11% after an Ava Global update on its secure logistics division increasing revenues by 360% over Q2FY17 and a positive start to the final quarter.

CORPORATE NEWS

  • Duet Group (DUE) +9.45% after FIRB approved the takeover from Hong Kong CKI at 303c after a long five months and shareholders have agreed as eth takeover looks to be heading for resolution. The approvals may have knock on effects for the rest of the sector with Spark Infrastructure (SKI) +% and AusNet (AST) +%.
  • Coca-Cola Amatil (CCL) -10.52% has backed away from its promise of mid to single-digit earnings growth, as trading in Australian has been weaker than last year with all channels experiencing volume and price pressure.
  • Chevron has lost a big tax appeal against the ATO which is set to make life tougher for other multinationals around the world. The US giant will be stung with a $300m bill and costs after losing to the ATO in a issue with intercompany loans.
  • Oz Minerals (OZL) +2.62% after announcing it is pushing on with its $1bn Carrapateena earlier than expected locking in early stage contractors. This move further de-risks the project. Production numbers were affected by the weather but the company reaffirmed its guidance of 105k to 115k tonnes of copper and 115k-125k ounces of gold.

BOND CORNER

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ECONOMIC NEWS

  • Nothing today.

ASIAN NEWS

  • Shanghai is heading for its worst week this year with a 2.2% fall in the Shanghai Composite Index.

EUROPE AND US

Allons-y. French election results will start to come through around 4am on Monday morning. Macron is the market fave. Fingers crossed..have backed Chelsea too!!

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  • President Trump has called it an ‘historic day’ for US Steel as he has launched an investigation into foreign imports of cheap steel. The commerce department investigation could be completed in as little as 50 days, he said, a timeline that is well ahead of the 270 days called for under law. Chinese exports of steel into the United States are reaching the point where they now have 26% of the market
  • More M&A activity in the UK with WS Atkins agreeing to a £2.1bn takeover by Canadian rival SNC-Lavalin. Atkins’ board last night agreed to a cash takeover at £20.80-a-share, some 35% above its closing share price on March 31 when the talks first emerged.

And finally…………have a great weekend…ned more jokes..am running out so please email me at henry@marcustoday.com.au

‘If I ever have twins, I’d use one for parts.’

‘Animals may be our friends. But they won’t pick you up at the airport.’

‘Contrary to what most people would say, the most dangerous animal in the world is not the lion or the tiger or even the elephant. It’s a shark riding on an elephant’s back, just trampling and eating everything they see.’

A guy dies and is sent to hell. Satan meets him, shows him doors to three rooms, and says he must choose one to spend eternity in.

In the first room, people are standing in dirt up to their necks.

The guy says, ‘No, let me see the next room.’

In the second room, people are standing in dirt up to their noses. Guy says no again.

Finally Satan opens the third room.

People are standing with dirt up to their knees, drinking coffee and eating pastries.

The guy says, ‘I pick this room.’

Satan says Ok and starts to leave, and the guy wades in and starts pouring some coffee.

On the way out Satan yells, ‘OK, coffee break’s over. Everyone back on your heads!’

Clarence 

XXXX

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NT Markets

Get a Global take on things at http://www.ntmarkets.com

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