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Today’s Headlines

  • ASX 200 closes up 30 at 6025
  • High 6026 Low 6001.
  • Miners move higher as commodity prices rise.
  • Mining drives GDP growth.
  • Banks remain under pressure. MS downgrades.
  • Prospa IPO delayed by ASIC query.
  • Energy shares enjoy oil price rise.
  • Healthcare index hits all-time high, really CSL
  • AUD higher on positive GDP number at 76.57c
  • Bitcoin weaker at US$7598
  • AUD Gold steady at $1297.
  • US futures up 70.
  • Asian markets mixed with Japan up 0.46% and China CSI 300 down 0.15%

STOCK STUFF

Movers and Shakers

  • BHP +1.99% gets first-round bids for US shale assets.
  • CIM -1.98% mining services remain under pressure.
  • MPL -unchanged- private hospitals to share pain too.
  • APT -4.57% suffers after media comments
  • KGN -3.85% overhang overhangs.
  • DMP -4.38% stuffed crust.
  • MTS -2.17% write-downs and impairments
  • WSA +3.09% nickel price rise.
  • XRO +3.10% WTC +4.07% tech favourites.
  • AGY +13.95% clarification of announcement
  • MOC +9.46% answers media article.
  • PPS +6.54% keeps on moving higher. Broker upgrade.
  • Speculative stock of the day: Nothing of significance.
  • Biggest risers – CVW, GSC, WTC, MOE, SFR and BOT.
  • Biggest fallers –NWL, APT, DMP, KGN, RCR and REG.

TODAY

  • Metcash (MTS) –2.17% To book an impairment charge to goodwill and assets in the supermarkets and convivence division of $352m for the fiscal year, driven by the loss of a major customer in SA (Drakes Supermarket) & weaker trading in WA. MTS said the impairment is non-cash and won’t affect debt facilities
  • BHP +1.99% Reports in the AFR that BHP has received first round expressions of interest in the US shale assets worth US$7-9bn from majors including BP, Chevron and Royal Dutch Shell.
  • Magellan Funds Management -1.71% FUM rose to $67.354bn from $66.199bn. In May though net outflows of $47m with $57m from retail and a inflow from institutions of $10m.
  • Prospa IPO – has been postponed by 48 hours as ASIC seeks clarity on small business loan terms.

ECONOMIC NEWS

GDP above expectations at 1.0%

GDP SUMMARY

  • The Australian economy grew by 1.0% in seasonally adjusted chain volume terms in the March quarter.
  • Exports of goods and services contributed 0.5 percentage points to GDP growth.
  • Compensation of employees increased 1.2%.
  • Gross operating surplus increased 4.0%.
  • The Terms of trade rose 3.3%.

  • Exports of goods and services rose 2.4% following a fall of 1.5% in December. Through the year exports of goods and services is up 4.6%. Exports of goods were up 2.9% driven by non-rural exports (3.3%) with mining commodities, Liquified Natural Gas (LNG), Coal, Iron Ore and Non-Monetary Gold, the main drivers.

ASIAN MARKETS NEWS

  • China offers to buy more ‘Made in USA’ goods in an effort to stave off a looming trade war. Another $25bn is the gesture.

EUROPE AND US MORNING HEADLINES

  • US pushes back on airlines rolling over to China on Taiwan naming.
  • Dutch payments group Adyen is set for a market value of between EUR6.5bn and EUR7.1bn when it floats on Amsterdam’s Euronext stock market this month in one of the largest European technology listings in recent years.
  • Cancel your vacation plans. US Senate leader Mitch McConnell has called off the August break to deal with Democrats ‘historic obstruction’.
  • Uranium is back. Well, a UK float, Yellow Cake is coming to the London Stock Exchange with a listing valued at between US$150m-$200m. The vehicle has already struck a deal with Kazatomprom, the world’s largest uranium producer, to buy up to $170m of the metal at a 7.7%discount to the current spot price. In addition, it has an option to purchase a further $100m of uranium each year from the company for the next nine years. Our very own Alexander Downer is a director. Where does he find the time?
  • Chile’s billionaire businessman Julio Ponce Lerou has rejoined the country’s largest lithium producer SQM following the sale of a stake to a Chinese rival.
  • Elon Musk sticks to his prediction of 5000 cars a week by months end. Jousting sticks anyone?
  • Post Brexit UK military co-operation will cease. 74th anniversary of D-Day today. Thought the UK had paid in full membership of the European community.

And finally…..

Some great dated ads from a bygone era….

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What is the similarity between Barnaby Joyce and Ikea?

One wrong screw and the whole cabinet falls apart.

Clarence

XXXX

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Get a Global take on things at www.ntmarkets.com

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