International investors exit stage left as AUD rises to 77c!

  • ASX 200 drops 97 points to 5721.5 as global equity/bond rout hits.
  • ASX 200 up 6 points for the week.
  • Lack of support across the board. No window dressing.
  • All sectors hit with financials, REITs and healthcare leading falls.
  • Big Bank Index falls to $171.63. Interest rate sensitive stocks hit hard.
  • Miners outperform but still down. Golds have pockets of resistance.
  • Consumer stocks slide.
  • Building stocks heavily sold off.
  • AUD stronger at 76.91c.
  • US Futures up 18ahead of Independence Day weekend.
  • Asian markets follow US, CSI 300 down 0.01%. Japan down 1.03%

Stock Stuff:

  • BTT -7.70% UBS downgrade on performance fee outlook.
  • LNKR -5.37% Trading today with shareholders in LNK able to trade entitlements.
  • FMG +0.19% Buyers emerge at the close.
  • MIN +8.50% Shrugs off the downgrade and market blues.
  • BKL +0.86% More comfortable with Marcus back at the helm.
  • SPK -3.49% Investor day.
  • CSL -2.84% Suffers serious profit taking.
  • S32 -2.90% Colliery suspension.
  • CWN -2.15% Suffers biggest one day fall this year.
  • TPM -1.55% UBS cuts recommendation to Neutral from Buy.
  • FXJ -8.33% Hedge fund exodus on bid doubts emerge as deadline approaches.
  • Biggest risers – MIN, WPP, EVT, HSN, MTS and ASL.
  • Biggest fallers – FXJ, BTT, AGI, FLT, PRY and CSR.


  • Bega Cheese (BGA) +1.40% The acquisition of Vegemite may be delayed by the IT outages at Mondelez International. A minor negative but it should be a short-term issue.
  • Helloworld (HLO) +10.68% Reaffirmed guidance will be at the top of the recent range for EBITDA of between $47-$51m. Positive sales growth in airline ticket sales.
  • Audinate Group (AD8) +25.41% New float kicked off today.
  • South32 (S32) –2.90% Appin colliery has been suspended due to safety concerns from the regulator in NSW. The Denrobium mine remains in operation and production is in line with guidance.
  • Virgin Australia (VAH) -3.03% has announced some changes to management and the board.
  • Eden (EDE) +25.64% has announced that its EdenCrete will be used in all state funded concrete road repair projects in Georgia in the next 12 months. There are currently around 16 projects in the pipeline.
  • KKR has agreed to buy a controlling stake in Australian pub roll-up Dixon Hospitality Group valuing the pub group at $190m.
  • ANZ -1.03% is looking at an investigation into fraud involving fake warehouse receipts for nickel stored in warehouses owned by Glencore.
  • TEN – Commonwealth Bank is expected to appoint a receiver imminently.
  • Webjet (WEB) -2.76% Sells interest in Webjet Marketing North America and re-acquires Webjet.com
  • Reckon (RKN) +3.77% The company will demerge its Document Management segment and list it on AIM in the UK under a separate entity. GetBusy PLC will enable RKN to distribute an in-specie dividend of GetBusy shares expected to list in August.


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  • Chinese June services PMI has risen from 54.5 to 54.9. The manufacturing PMI increased to 51.7 in June, compared with a median estimate of 51. New export orders at 52.0 highest since April 2012. More positive signs that the economy is not falling into a hole. Good for resources. Just not today.
  • In Japan, consumer prices, excluding fresh food, advanced 0.4% in May from a year earlier, the fastest gain since December 2014, when the impact of a 2014 sales-tax hike is excluded (estimate 0.4%). Although we are seeing inflation edging higher it is still a long way off the BOJ target of 2% and seems unlikely to get there soon. Expect the BOJ to have to revise its target down in due course.
  • The jobless rate in May rose unexpectedly to 3.1%. Industrial production rose 6.8% from a year ago.
  • Dalian Iron futures are off 1.6% today on profit taking following iron ore hitting its best values in over a month. Analysts remain concerned with the long-term story as demand softens and oversupply continues. The near-term trend remains positive further supported by strong PMI data today.

iron ore

  • The Big Sleep is over?


  • President Donald Trump’s administration proposed its first arms sales to Taiwan, a $1.3bn package of early-warning surveillance radar, anti-radar air-launched missiles and naval torpedoes.
  • Apple CEO Tim Cook made US$145m last year. 10 years since the iPhone appeared.1bn sold since then.
  • Germany’s parliament will vote on allowing gay marriage. With the majority of Germans supporting gay marriage and in an election tear Merkel has broken with traditions to allow the vote.
  • Rupert Murdoch’s takeover of Sky in the UK has run into competition issues for the GBP11.7bn takeover. The Culture Secretary Karen Bradley revealed she is ‘minded’ to refer the bid by 21st Century Fox for a full investigation by the Competition and Markets Authority.
  • Bunnings (WES) which now owns Homebase in the UK has unveiled plans to create over 1,000 new jobs. The Australian DIY chain that owns Homebase has unveiled plans to create over 1,000 new jobs in the UK. Bunnings said it was now planning to have 20 Bunnings pilot stores in Britain by the end of 2017, up from its prior expectation of 10 stores. Ultimately all 258 Homebase stores will be become Bunnings complete with the Saturday sausage sizzle.

And finally ……

An 85-year-old man was requested by his doctor for a sperm count as part of his physical exam.

The doctor gave the man a jar and said, “Take this jar home and bring back a semen sample tomorrow.”

The next day the 85-year-old man reappeared at the doctor’s office and gave him the jar, which was as clean and empty as on the previous day. The doctor asked, what happened and the man explained.

“Well, doc, it’s like this–first I tried with my right hand, but nothing. Then I tried with my left hand, but still nothing. Then I asked my wife for help. She tried with her right hand, then with her left, still nothing. She tried with her mouth, first with the teeth in, then with her teeth out, still nothing.

We even called up Arleen, the lady next door and she tried too, first with both hands, then an armpit, and she even tried squeezin’ it between her knees, but still nothing.”

The doctor was shocked! “You asked your neighbour?” The old man replied, “Yep, none of us could get the jar open.”

(Sorry its an old one but still good…please send me more henry@marcustoday.com.au)

Happy New Year

Thanks for all your support this year and here’s to 17/18!!


NT Markets

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