ASX 200 finishes up 5 at 6135 after bouncing convincingly off 6100 as AUD falls. US Futures down 38. Banks back in front of the star chamber in Canberra. Good fight back after early weakness, NAB up 0.5%. LYC rejects WES embrace and moves 2% higher. WES looking better up 0.7% CSL bleeds red down 1% with other healthcare stocks lower. Miners turn positive again led by BHP up 0.9% and RIO up 1.5% on iron ore futures rallying slightly. FMG up 2.4%. Bond proxies again in demand as we all become bond inversion experts. TCL up 0.1% SYD up 1.1% and AIA up 1.0%. REITS slip on some profit taking. ECX updates the market on its plans for Graysonline. Rallies 22.8%. AUD 71.06c as RBNZ keeps rates on hold and moves to easing bias.

Todays Highlights

• ASX 200 up 5 to 6136. Closes on highs. Good rally.
• High 6136 Low 6097. 6100 holds for now.
• Banks defy early weakness as Canberra inquiry weighs again.
• Resources hold the line. FMG a star.
• Energy stocks off lows.
• CSL bleeds lower.
• AUD gains slightly to 71.05c
• Aussie Gold steady at $1853
• US futures down 38
• Asian markets mixed with Japan down 0.51% and China up 1.02%

STOCKS

• FMG +2.42% discount narrows to only 3%.
• TGR -6.45% listeria reports in some fish from February.
• LYC +1.90%% company says no.
• DCN +6.58% market rethink after production update.
• MOE +3.29% change of directors interest.
• PME -6.93% broker downgrades.
• SBM -4.26% change of director’s interest.
• AWC -4.69% investor/conference presentation.
• CTD +0.53% CEO tax issues.
• ALL -1.18% broker gaming research.
• BPT +2.76% broker upgrades.
• ANZ +0.39% prosecutions likely.
• LCK +30.16% largest 2P uncontracted reserves on east coast.
• ARG -0.65% sinking into the sunset.
• CGF +1.01% buying petering out.
• NUF +4.77% Sumitomo goes substantial.
• ECX +22.81% plans for Graysonline and Right2Drive please investors.
• SPT -0.76% late retreat.
• MQG +0.86% reaffirms guidance Andrew Downe to retire.
• CAT +7.06% finding support. It is football season after all.
• EXL +8.50%% higher and higher.
• WHA -4.94% sours.
• Speculative Stock of the Day: Nothing stands out.
• Biggest Rises: DCN, NUF, NEC, BAL, SIG and GMA.
• Biggest Falls: PME, TGR, CDD, AWC, SBM and AHY

TODAY

• Lynas (LYC) +1.9% Has responded to Wesfarmers (WES) takeover offer this morning, saying it “will not engage on the terms outlined in the indicative and highly conditional proposal.”
• Senex Energy (SXY) – Secures Queensland Government environmental approval for development of project Atlas.
• Eclipx (ECX) +22.81% Announced it is looking to offload its Grays & Right2Drive brands to help lower debt levels, ECX will aim to cut $20m over the next year and a half. The financial services company added it would not pay a first-half dividend.
• Cromwell Property Group (CMW) –0.45% Confirms media speculation that it made an approach to the board of RDI regarding a potential transaction.
• Amaysim (AYS) +1.49% Click Energy, an AYS subsidiary resolves ACCC litigation. The Federal Court ordered a penalty of $900,000 after the company made false statements about discounts and savings that consumers in Victoria and Queensland could obtain on its energy product. The charges will not impact FY19 results.

ECONOMIC NEWS

• RBNZ keeps rates on hold. Cutting bias now in. NZD falls in a heap.

BOND MARKETS

• 2-Year bond yields down 4bps to 1.47%
• 5-Year yields down 5bps to 1.43%
• 10-Year yields down 5bps to 1.77%

ASIAN NEWS

• Chinese Beige Book shows signs of first quarter recovery. “The recovery extends across both sectors and geographies, with every major sector and each one of our regions showing better revenue results than Q4.” Reports of company borrowing matched the highest level since mid-2013, while loan applications continued to rise and rejection rates plumbed all-time lows, the report said.
• Trade talks resume. Trump trumpets excellent deal ahead.
• Profits at large Chinese industrial companies fell at the fastest pace in almost a decade at the start of 2019.

EUROPEAN AND US NEWS

• Citigroup is being sued for age discrimination by a 56-year old.
• An OxyContin maker settles an opioid case for US$270m.
• A Boeing 737 Max has made an emergency landing in Florida.
• Another day. Another non-binding indicative UK vote on a cunning plan proposed by Baldrick.
• Geely is set to buy out 50% of Daimlers small car division, Smart.
• May has had her day as Tory MPs tell her to name day of departure to pass any deal.
• In another blow for tech platforms, the EU has ruled that they are responsible for content after copyright rules passed. As well as liability for infringement, tech giants could also face bills from copyright holders for carrying snippets in search results or social media feeds. No love lost between the EU and the Silicon Valley behemoths.

 

And finally……………

Jim called his friend in tears. “I can’t believe it,” he sobbed. “My wife left me for my golf partner.”

“Get a hold of yourself, man,” said his friend. “There are plenty of other women out there.”

“Who’s talking about her?” said Jim. “He was the only guy that I could ever beat!”

 

More fun and games from the House of Cards in Westminster

 

Clarence

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