ASX 200 hits an11-year high at 6382 up 63 points as CPI data opens door for a rate cut. US Futures down 11. After a strong start the enthusiasm waned before a turbo boost from a falling currency on the back of underwhelming CPI numbers. Banks remain the glory boys ahead of the results kicking off next week. Resources under pressure for no other reason than its time. BHP down 0.3% and FMG falling 1.8% on lower commodity prices. Healthcare was looking rosy today led by CSL up 2.4% and SHL up 3.6%. Even the boring REITs caught the bullrush today with SCG up 1.6%. Consumer stocks were in demand with WOW up 0.9% and WES up 1.1%. Infrastructure stocks benefitted from falling bond yields with TCL up 2.2% and SYD up 2.7%. Good news too for BAL up 15.6% following some licencing approvals in China. AUD slipped to 70.42c on the weaker CPI numbers and rate cut hopes.

Todays Highlights

• ASX 200 rises 63 points to 6382.
• High 6390 Low 6326.
• Banks lead the charge higher with healthcare close behind.
• Consumer stocks rally on rate hopes.
• REITs back in favour. Tech shines.
• Energy stands still.
• AUD falls to 70.42c on CPI figure.
• Aussie Gold rallies to $1804 on lower dollar.
• Bitcoin rallies to $5539
• US futures down 11
• Asian markets slid slightly with Japan falling 0.27% and China down 0.38% as the government looks to take some froth off the top. Japan is preparing for a ten-day close as holidays and the Emperor take centre stage.

STOCKS

• BAL +15.59% gets Chinese approvals.
• Z1P +8.73% good bounce from sell off.
• PME +4.82% new contract with Duke.
• APT +3.58% BNPL back after US announcement.
• NHC -4.51% coal on the nose.
• CUV -1.48% chairs letter to shareholders.
• KGN -3.58% ran too fast yesterday.
• AWC -2.54% CFO appointment.
• PLL -13.89% total production resource.
• RAP -8.82% Australian test results.
• PDN +16.00% denies capital raising rumours.
• TME +0.50% block trade of 2.25m traded on new CEO.
• ALX +1.27% snow, yellow vests and roadworks hurt traffic numbers.
• CCV +3.45% Perpetual reveals substantial stake at 11%.
• EXL -5.53% acquisition in the US and independent valuation.
• AJX +18.52% granted FDA approval.
• Speculative Stock of the Day: FinTech Chain (FTC) +20.59% the momentum of its T-Linx rollout has continued with Tianshan Rural Credit Bank now using the technology. More good news piling on recent announcements.
• Biggest Rises: BAL, Z1P, CKF, PME, WTC and MGX
• Biggest Falls: OMH, NHC, ILU, SPO, KGN and IGO

TODAY

• Vicinity Centres (VCX) +2.39% Chairman Peter Hay to retire effective August 14. Peter Kahan has been appointed as his replacement. Kahan has been a Non-executive director since June 2015.
• Northern Star (NST) –2.48% Gold sold and cash at bank missed expectations. Gold sold in the March quarter totalled 185,296oz at an AISC of $1,369 per ounce. Group FY19 production guidance maintained, anticipated to be between 850k and 900k ounces. AISC guidance lifted 4-8%, now expected to be between $1,225 and $1275 per ounce. Australian operations on track to meet the top end of FY19 production guidance, between 600k and 640k ounces.
• Atlas Arteria (ALX) +1.27% March quarter traffic figures. Weighted average traffic was unchanged on the previous corresponding period (pcp). Weighted average revenue up 2.3% on pcp, driven by toll increases and favourable traffic mix.
• Pro Medicus (PME) +4.82% Signs 7-year, $14m deal with Duke health. The agreement will see PME Visage 7 technology implemented across Duke’s radiology departments and integrated to Duke’s electronic health record. Planning for the rollout will start in Q4 FY19 with the first sites scheduled to be implemented in Q1 FY20.
• AV Jennings (AVJ) – 0.98%To buy the remaining 50% of the Jimboomba residential greenfields site at Riverton, located around 40km south-west of Brisbane. The project will deliver around 1,200 lots and is expected to settle in June. Terms undisclosed.
• Bellamy’s Australia (BAL) +15.59% Last night received key approvals from China’s State Administration for Market Regulation (SAMR). The approvals relate to formula made at its ViPlus facility in Toora, south east Victoria.

ECONOMIC NEWS

• ANZ-Roy Morgan Weekly Australia Consumer Sentiment Index was up 3.6% to 119.5 points. The move marks the largest weekly percentage increase in 10-months.
• CPI 1Q CPI 0.0% against 0.2% increase expected. Low inflation numbers. Downsize surprise and leaves the RBA room to cut.

• The most significant price rises this quarter are vegetables (+7.7%), secondary education (+4.2%), motor vehicles (+2.4%) and medical and hospital services (+1.3%).
• The most significant price falls this quarter are automotive fuel (-8.7%), domestic holiday, travel and accommodation (-3.8%) and international holiday, travel and accommodation (-2.1%).

• Price war what price war? ING has cut its fixed rate mortgage rates as wholesale funding rates fall. ING’s new two-year rate of 3.59% is 10bps lower then the second lowest, NAB, and 16bps lower than ANZ.

BOND MARKETS

Big day. Big moves.

• 2-Year bond yields down 15bps to 1.31%
• 5-Year yields down 14bps to 1.37%
• 10-Year yields down 10bps to 1.79%

ASIAN NEWS

• US and China are planning talks next week ahead of a potential May agreement.
• Nissan shares fell ahead of a rumoured earnings downgrade.

EUROPEAN AND US NEWS

• Trump calls in the chief twitter head to complain about the bias it shows.
• Treasury has missed deadline for Trump’s tax return and now Mnuchin has to decide whether to release his returns by May 6^th.
• Theresa May is heading for another Brexit vote. Maybe more luck this time around.
• UK PM also has defied security warnings and will allow Huawei to help build its 5G network. And has invited Trump to meet the Queen.
• Anti-virus pioneer John McAfee has threatened to reveal the man behind Bitcoin. Apparently alive and well and living in the US. Probably Florida. Watching ‘Days of Our Lives’. He is rumoured to own 1m Bitcoins personally. Now worth around US$5.6bn. Not bad.Long as he remembers the password.
• Trump’s top economist has compared the current US trade disputes as a case of scurvy.
• Credit Suisse reported an 8% rise in first quarter net income, beating estimates
• Fastest goal in EPL history scored. 6 seconds from kick off to back of the net.

And finally………….

There was once a young man who, in his youth, professed his desire to become a great writer. When asked to define “Great” he said, “I want to write stuff that the whole world will read, stuff that people will react to on a truly emotional level, stuff that will make them scream, cry, howl in pain and anger!” He now works for Microsoft, writing error messages.

 

A famous Admiral and an equally famous General were fishing together when a sudden storm hit. When it died down both renowned warriors were struggling helplessly in the water.

The Admiral floundered his way back to the boat and pulled himself painfully in. Then he fished out the General, using an oar.

Catching his breath, he puffed: “Please don’t say a word about this to anyone. If the Navy found out I can’t swim I’d be disgraced.”

“Don’t worry,” the general said. “Your secret is safe. I’d hate to have my men find out I can’t walk on water.”

Lest we forget

Clarence

XXX