ASX 200 up 46 points to 6246 as disappointing GDP numbers stoke rate cut talk and AUD slides towards 70c. US Futures down 72 awaiting more trade news. Banks kicked the market higher after the mid-morning GDP disappointed. Prior to the number the market was meandering aimlessly before a AUD fall boosted stocks. Energy stocks and miners were back in demand with some shorts racing to cover smaller miners like WSA +6.8%, IGO +5.8% and SFR +5.2%. All -1.7% seems to continue to miss out as pokie machine remain on the nose. Healthcare stocks kicked higher too,led by COH up 2.6% and even TLS +0.6% was in the green. In company results MYR +% delivered a better than expected set of numbers, enough to silence Mr.Lew for the time being. Shorts covered and it spilled over into other short positions. AUD at 70.34c
- ASX 200 marches higher by 46 points to 6246 as bulls come out to play.
- High 6246 Low 6202.
- Banks lead charge though ANZ misses out.
- Big Bank Basket up to $155
- Miners back in the green on China stimulus and RIO div tomorrow.
- Consumer staples better on GDP numbers.
- RBA still bullish but GDP below forecasts and hits AUD.
- AUD weaker at 70.32c
- Bitcoin stronger at US$3815
- Aussie Gold weaker at $1816
- US futures down 80
- Asian markets mixed with Japan down 0.69% and China up 1.19% as People’s Congress continues.
- BAL +4.92% optimism continues on new product launch.
- CLV +6.15% Omega three holds the key.
- WSA +6.79% shorts rush to cover as nickel rises.
- PLS +5.71% metal price rises.
- NUF +4.21% speculators getting set.
- AHG -3.43% car sales dent outlook.
- MTS -2.14% shorts back.
- BID -7.08% buyers pull out.
- BUB +24.17% new JV in China.
- MYR +10.98% makes a profit. Solly gobsmacked.
- SPT +17.39% the IPO of the year continues its rise.
- ATS +6.52% directors buying.
- MYO -0.29% US-based hedge fund Manikay buys up to 10% of the stock.
- NAB +0.75% fraud issues deepen as ex assistant charges home deposit to NAB credit card.
- HVN +3.83% change of director’s interest.
- TAH -0.42% loses TAB head bookie Sally Snow.
- BGA -0.44% two-year low.
- Speculative Stock of the Day: Nothing of significance.
- Biggest Rises: WSA, IGO, PLS, SFR, Bal and JMS.
- Biggest falls: KMD, FXL, KDR, HT1, NGI, AHG and ALG
- Bubs Australia (BUB) +24.17% Has signed a Memorandum of Understanding (MOU) to sign a joint venture with Chinese infant nutritional firm Beingmate Baby & Child Food Co. to distribute & promote Bub’s products in China.
- Myer (MYR) +10.98% Results this morning. Total sales down 2.8% to $1.6714bn. Online sales up 18.6%. Improved gross profit margin with NPAT up 3.1% to $41.3m. EBITDA up 4.9% to $113.6m. Outlook: Sales are expected to be impacted by the exit of a number of brands and the introduction of several new brands, and there will be additional costs associated with these initiatives. In 2H2019, higher interest and depreciation costs to continue plus uncertainty in the run-up to the Federal election.
- Hard as Josh Frydenberg tries to spin it the GDP number was disappointing. A rise of 0.2% in 4Q GDP.
- Household savings ratio edged up to 2.5% from a revised 2.3%.
- Construction fell 1.9% as mining projects approached completion and residential building weakened. Agriculture fell 3.2% as drought conditions took their toll.
- RBA chief says wealth effects are limited to furniture and cars. Dr. Phil; remains relatively upbeat on the local economy despite the numbers after his speech. He believes that house prices will not derail the local economy. RBA research estimates that a 10% rise in net housing wealth raises the level of consumption by about 0.75% in the short run and by 1.5% in the longer term.
- AMPs Shane Oliver is now predicting interest rates will be 1% by end of this year, forecasting rate cuts of 25bps in August and November.
- NAB’s latest data on online spending – based on what its clients do with cards and spending on BPay and Paypal – shows a 0.5% month-on-month contraction in January, following 2% contraction in December.
- 2-Year bond yields down 6bps to 1.66%
- 5-Year yields down 6bps to 1.70%
- 10-Year yields down 5bps to 2.10%
- More than 70% of Shanghai Comp stocks are trading above their 200-day moving average.
- North Korea is rebuilding one of its missile sites after the Hanoi talks failed.
- Chinese Congress continues. All theatre though. Everything is decided.
EUROPEAN AND US NEWS
- So much for the US closing the trade gap. Data set to hit tonight will show a further US$100bn blow out in the trade deficit in goods and services. Looks like it will top US$600bn with the world. This is 20% worse than the trade position the US had when Trump was elected.
- The U.S. has confirmed the country is postponing “until further notice” a scheduled tariff increase on Chinese goods.
- Michael Bloomberg will not run for President in 2020. Nor Hilary.
- Bank of Canada Governor is expected to keep rates on hold.
- This will alarm the US, Italy is set to endorse the Chinese Belt and Road policy as long as the belt is Armani and the Road is Monza.
- The Russian drug money laundromat scandal is set to hit more European banks. The investigation is widening to Holland now with several Dutch banks in the headlights.
There was a preacher who fell in the ocean and he couldn’t swim. When a boat came by, the captain yelled, “Do you need help, sir?”
The preacher calmly said “No, God will save me.”
A little later, another boat came by and a fisherman asked, “Hey, do you need help?”
The preacher replied again, “No God will save me.”
Eventually the preacher drowned & went to heaven. The preacher asked God, “Why didn’t you save me?”
God replied, “Fool, I sent you two boats!”
Maria, a devout Catholic, got married and had 15 children.
After her first husband died, she remarried and had 15 more children. A few weeks after her second husband died, Maria also passed away.
At Maria’s funeral, the priest looked skyward and said, “At last, they’re finally together.” Her sister sitting in the front row said, “Excuse me, Father, but do you mean she and her first husband, or she and her second husband?”
The priest replied, “I mean her legs.”