ASX 200 drops another 48 points to 6392 on trade woes. US Futures up 22. Asia steadies. Broad based losses, banks outperform though WBC falls 0.4%. CBA up 0.4% the best of the bunch. Miners slide on commodity falls with BHP down 1.7% and RIO down 3.3%. FMG slipped 3.7% as DRP allocations announced. In healthcare CSL suffered a 0.5% fall as flu vaccine runs short in Australia and trade wars could bite in China. Energy stocks splutter lower on growth fears with WPL down 0.8% and STO down 1.6%. Defensive REITs and bond proxies also came under pressure as buyers stepped aside GMG fell 1.6% and SYD dropped 1%. LYC ran into some profit taking down 0.7% after early gains. In corporate news, CGC was smashed 27.6% to a two-year low as yet another profit warning was delivered with tea and biscuits at the AGM. Asian markets saw some stability return though China fell 1.02% and Japan down 0.44%. AUD steady to slightly higher at 69.33c.

Todays Highlights

• ASX 200 drops 50 to 6390 in nervous trade.
• High 6432 Low 6380. Average volume. Month end tomorrow.
• Fitch drops GDP forecast to 2%.
• Banks outperform. Miners suck.
• Defensives and bond proxies slip.
• CGC berry smashed on profit downgrade on weather and crop forecasts.
• Miners under somenpressure on commodity falls.
• AUD rises slightly to 69.32c
• Aussie Gold steady at $1843
• Bitcoin pushing ahead still US$8730. Back in the black.
• US futures up 22.
• Asian markets better with Japan up 0.4% and China up 0.7%

STOCKS

• SGF +5.00% decent bounce.
• CIA +4.58% refinancing and 100% of Bloom Lake.
• BKL +6.14% Morgan Stanley upgrades.
• DDR -0.19% bargain hunters.
• CGC -27.61% another profit downgrade. Weather and crop yields to blame.
• WOR -5.06% wins contract.
• APT -4.03% Z1P -4.45% some hot aire escaping.
• NEA -4.83% tech sell off.
• EOS +22.70% profit update.
• SYR +13.45% strategic?
• PET +16.18% rally continues.
• CVN +3.85% rise on drilling results continues.
• ALL -1.17% continues down post dividend.
• TLS +1.68% making connections.
• CSL -0.45% flu vaccine in short supply.
• Speculative stock of the Day: Keytone Dairy (KTD) +25.00% after an ASX query on the Walmart Chinese agreement. In a definite agreement with quantities to be confirmed on purchase order basis.
• Biggest Risers: BKL, SGF, WGX, CIA, SLR, CVN and EHE.
• Biggest Falls: CGC, CEN, ELD, NWH, IFT, WOR and NEA.

TODAY

• Bendigo & Adelaide Bank (BEN) +0.91% Chair Robert Johanson will retire effective October 29. Jacqueline Hay, who has been with the company since 2011, has been appointed as his replacement.
• Mirvac (MGR) -2.90% complete a $750m placement at 297c.
• Costa Group (CGC) –27.61% earnings downgrade at the AGM this morning. The company is now expecting EBITDA-SL in the range of $140-153m and NPAT-SL in the range of $57-66m for CY19. The expected numbers are above those of CY18 but below previous expectations. A deteriorating operating environment through May is being blamed for the downgrade.

ECONOMIC NEWS

• The number of dwellings approved in Australia fell by 0.6% in April, in trend terms. The number of dwellings approved in Australia fell by 0.6 % in April, in trend terms. The seasonally adjusted estimate for total dwellings approved fell 4.7% in April.

• The Fair Work Commission has recommended minimum wage growth of 3% to $19.49c an hour. It considered the economy is ‘performing well’ and the ‘labour market is strong’. Yet still we need rate cuts?
• Fitch has downgraded local GDP to 2% this year. A decade low.
• NZ unveils a budget aimed at ‘wellbeing’. Admits budget was leaked due to website issues rather than hacking.

ASIAN NEWS

• 20-year Japanese government bonds now yield 0.3%.
• Malaysia has backed Huawei on direct conflict to the US.

EUROPEAN AND US HEADLINES

• The US Energy department has renamed gas ‘molecules of freedom. No longer just gas. Freedom.
• Israel heading to the polls again. First time this has happened.
• Boris Johnson could face criminal trial over Brexit lies.
• Italy may bring in a parallel currency as it opposes Brussels. Economic revolt in the offing following EU elections.
• UK 10-year bonds around 1%.
• Ferrari has unveiled a supercar hybrid. Ships next year. Price? Not disclosed yet.
• Chelsea beat Arsenal 4-1.

And finally……….

A wife arrived home after a long shopping trip, and was horrified to find her husband in bed with a young, lovely thing.

Just as she was about to storm out of the house, her husband stopped her with these words:

“Before you leave, I want you to hear how this all came about. Driving home, I saw this young girl, looking poor and tired, I offered her a ride. She was hungry, so I brought her home and fed her some of the roast you had forgotten about in the refrigerator.”

Her shoes were worn out so I gave her a pair of your shoes you didn’t wear because they were out of style.

She was cold so I gave her that new birthday sweater you never wore even once because the colour didn’t suit you.

Her slacks were worn out so I gave her a pair of yours that you don’t fit into anymore.

Then as she was about to leave the house, she paused and asked, “Is there anything else that your wife doesn’t use anymore?”

“And so, here we are!”

 

A blonde walks into the police department looking for a job.

The officer wants to ask her a few questions…

Officer: What’s 2+2? Blonde: Ummmmm… 4!

Officer: What’s the square root of 100?

Blonde: Ummmm… 10!

Officer: Good! Now, who killed Abraham Lincoln? Blonde: Ummmm… I dunno.

Officer: Well, you can go home and think about it. Come back tomorrow.

The blonde goes home and calls up one of her friends, who asks her if she got the job. The blonde says, excitedly, “Not only did I get the job, I’m already working on a murder case!”

 

Thanks unijokes…anyone got any good jokes..please send them to henry@marcustoday.com.au

Clarence

XXXX