Highlights:

  • ASX 200 rallies 40 points to 5706 in modest trade as bargain hunters emerge after jobs numbers. Buying gathers pace as day unfolds though closing off its highs as technical resistance at 5700 is breached.
  • Dow Futures barely changed. AUD 75.52c
  • Financials lead the way as the banks rally with the Big Bank Basket up to $169.37. Insurers recover from the negativity after the QBE Insurance (QBE) disappointment yesterday.
  • Banks hit with another levy as South Australia hits the big five for $370m over four years in budget. This is starting a trend now to fix budget issues by taxing profits.
  • Miners bounce hard as Fortescue Metals (FMG) +3.76% leads the charge. BHP +0.23% and RIO +0.64%
  • CSL +1.08% continues to hit new highs. Energy finds support despite more falls in WTI Crude.
  • Domino’s Pizza (DMP) -3.63% fall flat as Citi delivers a ‘sell’ recommendation on the stock and a price target of 4550c.
  • Eley Griffith chief says retailers have been oversold on Amazon concerns. Noni B (NBL)+1.23% one to watch apparently.
  • Thorney Investment chair, Alex Waislitz believes Fairfax (FXJ) -unchanged- should push ahead with its plans to separate Domain and that the present management is better placed to deliver shareholder value.

TODAY

  • Dexus (DXS) -5.02% Returned from a trading halt having placed $500m worth of stock at 1026c a mere 3.4% discount. The company is buying a number of high profile office buildings in Sydney and Melbourne. The SPP for $50m will be conducted at 996c as the new shares issued will not be entitled to the 23.76c distribution.
  • Caltex (CTX) +0.55% has released its profit guidance, with the after-tax profit expected to be within the range of $250 million and $270 million for the 2017 half year.
  • Iluka (ILU) -0.87% has released an Australian operations update, flagging a non-cash impairment of approximately $150m pre-tax ($105m after tax) associated with Hamilton MSP expected as part of the half year accounts finalisation.
  • Cabcharge (CAB) +2.61% has entered into an agreement to acquire the operations business of Yellow Cabs Queensland for $20 million, subject to ACCC approval. The ACCC announced today that it doesn’t intend to oppose the acquisition.
  • ResApp (RAP) –0.50% Promising results from latest study on paediatric patients on lung infections.90%-100% PPA which is positive percent agreement with doctors, in pneumonia the app demonstrated an 89% agreement with a clinical diagnosis. Promising result for this small cap health stock.
  • CIMIC (CIM) +1.69% CPB Contractors, a division of CIM, have been selected to deliver a new metro under Sydney Harbour. The contract is worth $2.81bn to deliver two tunnels under the Harbour. Positive announcement and will kick the stock higher.

ECONOMIC NEWS

  • Employment rose by 133,500 in the three months to May, the biggest quarterly gain in jobs for over two years according to the latest numbers from the ABS.
  • Most of the new jobs were created in services, with healthcare the leading sector, followed by hospitality and professional, scientific and technical services, Healthcare remains Australia’s biggest employer with 1.58m employees (13.0% of the total) followed by retail trade (1.23m jobs or 10.1 %) and construction (1.10m or 9.0%).
  • The RBNZ kept rates on hold today. “Monetary policy will remain accommodative for a considerable period,” Reserve Bank governor Graeme Wheeler said this morning.

BOND MARKET UPDATE

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ASIAN NEWS

  • Chinese shares have continued to rally on the back of the MSCI emerging markets index inclusion. 28 of the CSI 300 top 30 gainers are among the 222 mainland stocks MSCI said it’s planning to add to its indexes.

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  • China coal-fired power firms rose after media reported regulators may cancel or cut special fees imposed on power generators starting July 1.

EUROPE AND US MORNING Headlines

  • George Clooney has done well selling his tequila brand to Diageo for over US$1bn. His high-end tequila company has only been in business for the last four years. Makes his work at the Bellagio (Oceans Eleven) look like small beer.

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  • Following the Queens Speech, it seems that the UK will be facing more uncertainty as the opposition vow to vote down the manifesto. Just a day after announcing charges against Barclays bank in the UK the (very) Serious Fraud Office has been let off the hook after the Tories dropped plans to merge it with the National Crime Agency. Plenty of other promises and policies dropped quietly too in the agenda for the next two years. Brexit negotiations the focus.
  • Morgan Stanley is forecasting that electric cars will corner 70% of the European vehicle market by the middle of century. A report it is becoming more expensive each year to develop petrol and diesel cars that comply with tightening rules on emissions of CO2 and particulates (NOx), yet the cost of EV batteries keeps falling. The crossover point will arrive in the mid-2020s.
  • President Trump has proposed that the Mexico wall will be a solar wall. Lots of sun. Lots of heat. It would generate electricity and this pay for itself. Genius.

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And finally………..

Phyllis Dillerisms…  

Whatever you may look like, marry a man your own age. As your beauty fades, so will his eyesight.
-Phyllis Diller
  

 

Housework can’t kill you, but why take a chance?
-Phyllis Diller

 

Cleaning your house while your kids are still growing up is like shoveling the sidewalk before it stops snowing. 
-Phyllis Diller

The reason women don’t play football is because 11 of them would never wear the same outfit in public.
-Phyllis Diller

 

Best way to get rid of kitchen odours: Eat out.
-Phyllis Diller

A bachelor is a guy who never made the same mistake once.
-Phyllis Diller

 

I want my children to have all the things I couldn’t afford. Then I want to move in with them.
-Phyllis Diller
  

 

Most children threaten at times to run away from home. This is the only thing that keeps some parents going.
-Phyllis Diller

 

Any time three New Yorkers get into a cab without an argument, a bank has just been robbed.
-Phyllis Diller

 

Clarence

XXXX

mt_tryforfree

NT Markets

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