Not a good way to finish the week!!

The day the market died???

Today’s Headlines

  • ASX 200 down 82 to 5703 on broad based selling of banks and USD earners.
  • Top to bottom of the range in a day. High 5779 Low 5693.
  • Weekly loss of 20 points. Increased volatility a focus.
  • US tech sell off hurting sentiment.
  • Banks slide 1.5% to 2% on profit taking. Resources give back ground.
  • Bond proxies weaker.
  • FMG rallies despite sector woes.
  • Healthcare takes a hit.
  • Telcos buck selling on defensive nature.
  • Consumer and gaming stocks sold down. DMP falls over 3%
  • US healthcare act fails to pass Senate. No repeal of Obamacare.
  • AUD slips to 79.67c.
  • US Futures down 46.
  • Asian markets mixed with Japan down 0.66% China up 0.16%.

 

STOCK STUFF

  • BKW +2.79% on trading update and WA consolidation.
  • TLS -0.24% finding a little support.
  • BWX -7.62% drops on more profit taking. Beef woes highlight China risk.
  • A2M -3.33% Goldman Sachs sells down holding.
  • FMG +3.44% cost cutting and production report.
  • WEB -6.87% at odds with auditors.
  • KGN +7.14% after insurance deal yesterday.
  • AWE -5.00% disappointing quarterly.
  • LOV +4.06% in thin trade.
  • BHP -1.25% no restart expected this year for Samarco.
  • HVN +0.93% short covering continues
  • Biggest risers – NHC, FMG, BAL, BKW, LYC and FNP.
  • Biggest fallers –WEB, OGC, BWX, AHY, A2M and MYX.

TODAY

  • Webjet (WEB) –6.87% The company has announced it is having some issues with its auditor on the accounting treatment of the Thomas Cook acquisition. Despite 2 of the big four accountancy firms agreeing with WEB the auditor BDO disagrees and so the accounts will be qualified.
  • Origin Energy (ORG) -0.87% and ConocoPhillips have successfully completed performance testing at their APLNG gas export project in Queensland.
  • Downer EDI (DOW) -2.18% has secured 74.5% of Spotless, bringing the contactor close to the crucial 75% mark that enables it to attempt to delist the services group.

ECONOMIC NEWS

  • The quarterly producer price index (PPI) rose 0.6% in April-June, following a 0.5% increase the previous quarter, the ABS reported. The median estimate was a gain of 0.6%.
  • Goldman Sachs Asset Management is calling the top of the AUD rally. It sees unrealistic expectations of RBA rate rises.

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BOND MARKET UPDATE

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ASIAN NEWS

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  • Core consumer prices, which exclude fresh food, increased 0.4% in June from a year earlier (estimate +0.4%).
  • Excluding fresh food and energy, prices were unchanged (estimate -0.1%).
  • The unemployment rate fell to 2.8 % (estimate 3%).
  • Household spending rose 2.3% from a year ago (estimate +0.5%), its first gain in more than a year.

 

EUROPE AND US MORNING Headlines

  • Corporate results due Friday include Credit Suisse Group AG, Nomura Holdings Inc., Exxon Mobil Corp., and Barclays Plc.
  • With just under half of S&P 500 components having reported June-quarter results already, earnings growth stands at 10.5%, according to consensus data. The blended estimate, earnings and expected earnings, is 10.7%.
  • Atlassian -CEO Scott Farquhar said the company expects its strong growth to continue into 2018 after it booked a 36% annual rise for the 2017 financial year. Atlassian’s 36% revenue jump saw it hit $US619.9m for the 2017 financial year, with an increased net loss of $US42.5m. The company forecast slightly lower revenue growth of 33% to 34.5% to between $US826m- $US834m. The CFO has resigned though in some bad news.
  • EU citizens will still be allowed to come to live and work in UK after Brexit, the government has said.
  • Virgin Atlantic founder Sir Richard Branson sells 31% stake in airline for £220m as part of new tie-up with Air France-KLM.

And finally…thanks to Hans for this cracking ad from Germany.

 

Have a great weekend

 

Clarence

 

XXX

Up on the Gold Coast next week for a few days at the AIA Conference speaking on ‘How to avoid Landmines in the market”. May or may not have time to post!!! We shall see.

mt_tryforfree

NT Markets

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