- 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%
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.
- 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.
GDP above expectations at 1.0%
- 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.
Some great dated ads from a bygone era….
What is the similarity between Barnaby Joyce and Ikea?
One wrong screw and the whole cabinet falls apart.