- ASX 200 rises 63 points to 5737 on Yellen testimony.
- Volume improves. High of 5743.
- Banks rally. Healthcare shines.
- Miners underperform. REITS and Infrastructure in demand.
- Yellen turns ‘dovish’ on rates. Triggers rally.
- Bank of Canada raises rates. Loonie on the path.
- AUD firmer at 77.01c
- US Futures up 11.
- Citigroup, Wells Fargo and JP Morgan results on Friday.
- Asian markets firmer with China CSI 300 up 0.69% and Japan up 0.05%.
- BXB +1.50% following crossing of 10m shares at 943.5c.
- TLS -0.23% Citi voices concern on dividend.
- TWE +4.46% on broker upgrade.
- BTT +4.66% on broker upgrade.
- IPL +5.29% on broker upgrade.
- WOW +1.25% despite bread price war.
- WES +2.53% technical buying.
- WBC +1.85% Goldman Sachs upgrades to BUY.
- CBA +0.54% Goldman downgrades to NEUTRAL.
- MYR -0.60% Topshop concession gone from stores.
- UPD +6.00% market penetration above 11.7% Aims higher.
- TBH +18.31% corporate activity in gaming sector.
- Biggest risers – IPL, BTT, TWE, DLX, SRX and SAR.
- Biggest fallers –GXY, AWC, INA, OCA, EWC and AOG.
- Northern Star Resources (NST) -2.56% has released their quarterly activities report for June FY17, the company has achieved record gold production (154,116 Oz) in the June quarter with gold output at top end of full year guidance coming in at 514,735 Oz, guidance of (485,000-515,000 Oz).
- Whitehaven Coal (WHC) +1.74% has also released their quarterly report for June, highlights include: June Q run-of-mine coal production of 6.6mt (+18%), saleable coal production of 5.5mt (+7%) and record full year saleable coal production of 20.8mt up 6% on pcp.
- Ardent Leisure (AAD) +1.46% Sumitomo Mitsui Trust has emerged as a 5.01% shareholder.
- Netcomm (NTC)+7.99% The company announced that AT&T is its partner in the US regional broadband business. The JV has been in pace for some time but the partner has been undisclosed.
- Afterpay Touch Group (APT) +0.66% Market update – 87% increase in underlying sales to $271m for the last quarter. Underlying sales tracking at $1bn for the full year. Business performing to expectations. Now 6000 merchants using the service.
- Tabcorp (TAH) +0.94% /Tatts Group (TTS) +2.50% – CrownBet has also lodged an application, to review the proposed merger, with the Federal court. TAH/TTS will oppose the application.
- Cochlear (COH) +2.37% will spend $50m developing its first facility in China. The new facility will service China and emerging markets. And production within four years.
- Arrium (ARI) – creditors have approved the sale of the collapsed steel and mining group to British consortium GFG Alliance.
- Total housing, personal, lease and business loans fell 3.1% in May to a 3-month low.
- NAB has cut its growth forecasts for both houses and units this year on the back of sharply deteriorating sentiment about the property market. In its second quarter Australian Residential Property survey, NAB reduced its forecast for house price growth this year to 5% from 7.2% and halved its expectations for units to 3% from 6.8% just three months ago.
- The NSW government is spending $35m to create a 11-floor start-up hub above Wynyard station in Sydney.
- China reported a 11.3% on-year increase in exports and a 17.2% on-year rise in imports in June in dollar terms. A trade balance of $42.77bn for the month, higher than a forecast of $42.44bn.
- South Korea’s central bank held its benchmark rate unchanged at 1.25%. Governor Lee Ju-yeol said GDP will expand 2.8% this year, exceeding its previously forecast 2.6%. Inflation will fluctuate around 2% for some time and the BOK’s forecast is unchanged at 1.9%.
EUROPE AND US MORNING Headlines
- Royal Bank of Scotland is to pay GBP4.2bn to settle claims it mis-sold billions of dollars-worth of toxic mortgage-backed bonds. The troubled bank is still owned 71% by the UK government following the GFC bailout. The bank had previously set aside GBP3.6bn to cover the fine.
- The German government has approved a measure to make it easier for the state to veto takeovers of certain firms by foreign investors to protect the country’s technical “know-how”.
- Bank of England deputy governor Ben Broadbent has said “In my opinion, it is a bit tricky at the moment to make a decision (to raise rates). I am not ready to do it yet.
- EU Negotiator says UK must accept its financial obligations before any progress.
Little Emily went home from school and told her mum that the boys kept asking her to do cartwheels because she’s very good at them.
Mum said, “You should say No – they only want to look at your knickers.”
Emily said, “I know they do.
That’s why I hide them in my bag”!