Todays Highlights

• ASX 200 down 38 to 5468. Afternoon sell-off on cue. Late rally.
• ASX 200 has lost over 2.3% for the week. Santa MIA.
• High 5543 Low 5427. 116 point range.
• Simmering Cybercrime issues with China.
• Banks turn negative as broad market sell-off continues.
• Miners only solace. Thank BHPs buyback and special div.
• CSL turns around late.
• Energy could have been worse.
• Telcos in the red but HSO gets a Brookfield kick.
• AUD firms to 71.14c
• Bitcoin rallying to $4023
• Aussie Gold strong at $1771
• US futures down 60. Worst December since 1931
• Asian markets sold off again with Japan off 1.29% and China down 1.38%.

STOCKS IN FOCUS

• DMP -1.73% announces a buyback.
• AKP +7.40% breakthrough announcement. No volume though.
• HSO +5.83% Brookfield likes what it sees,
• RSG +6.39% GOR +3.36% gold shines.
• BHP +2.27% iron ore price rise.
• VOC -8.11% telcos in sell-off.
• VEA -6.78% refiner margins miss forecasts.
• GXY -5.91% ORE -10.98% lithium stocks under pressure.
• IAG -4.32% SUN -3.87% QBE +0.10% hail Ceasar. Not good news.
• TLS -3.86% suffers from 5G question marks.
• EXL +4.17% best IPO of the year. US signs farm bill.
• ADH +4.14% change in substantial holding.
• Speculative stock of the day: Droneshield (DRO) +28.57% Gatwick Airport shut down offers sales opportunity. Company stops these attacks.
• Biggest Risers – RSG, HSO, MOE, SM1, PME and NST.
• Biggest Fallers – PNI, SPO, ORE, CVW, PLs and VOC.

TODAY

• Healthscope (HSO) – 5.83% Considers Brookfield’s due diligence complete. Brookfield confirms it has no reason not to proceed with scheme of arrangement and simultaneous off-market takeover offer. BGH-Australian Super is looking to commence due diligence.
• IAG Group (IAG) –4.32% Market update following severe Sydney storms yesterday. The pre-tax cost of the Sydney storms will be in line with IAG’s maximum first event retention, of $169 million post-quota share. IAG estimates year-to-date net natural peril claim costs for FY19 currently amount to approximately $410-430m pre-tax, post-quota share.
• Bubs Australia (BUB) +3.41% Secures additional goat milk supply with Central Dairy Goats. The agreement guarantees a minimum supply volume of 2.2m litres to May 2019 and 6.2m litres for the following year.
• Freedom Insurance Group (FIG) +5.00% Guidance update. First half EBITDA now expected to be between ($9m) and ($10m) vs prior ($7m) to ($8m). The revised earnings expectations reflect lower than anticipated net revenue, on the back of higher commission clawbacks, and higher one-off external consultant costs.

ECONOMIC NEWS

• Nothing significant today

BOND MARKETS

• 2-Year bonds down 3bps to yield 1.97%
• 5-Year yields down 1bps to yield 1.96%
• 10-Year yields up 4bps to yield 2.37%

ASIAN MARKETS

• Carlos Ghosn rearrested in Japan.
• China denies espionage against US and others. Denies legal help for Canadians arrested.
• Japanese consumer growth continues to fall.

EUROPEAN AND US HEADLINES

• Drones close Gatwick. Three days in a row.
• Mad Dog Mattis resigns as US Defence chief. Even Melanie is confused.
• US Government shut down looms. Wall isn’t a wall but steel slats. Doesn’t count. Heads to Senate for rejection.
• Currently, 38% of equities on the Nasdaq and NYSE are trading below the 52 week low. Since 1984, there were only eight days when a bigger proportion of shares did so, according to Sundial Capital Research. Two were in 1987. But this can be a sign of bottoming.

• UK shoppers splurging online but avoid the high street. Cannot blame them.
• Half day Xmas Eve. Half the selling then.

And finally………

Clarence

XXX

 

Thank you for your support this year and reading my rubbish, sending me jokes and liking my tweets.

Clarence is taking a break for a few weeks.

If you want to contact him…his email is henry@marcustoday.com.au

 

Have a wonderful Xmas and a safe and healthy new year. Double demerit points so take care on the roads.

Peace love and understanding all around!