ASX 200 fell 1 point to 6542 as once again initial buying pressure waned. US Futures down 44. Banks were the stalwarts today after falls yesterday with CBA up 0.8% after selling its troubled financial planning business for $2.5m, and ANZ up 0.6%. Miners were under a little pressure despite overnight iron ore price rises with BHP down 0.5% and FMG falling 2.9% after a strong day yesterday. TLS continue to gain ground up another 1.6% and CSL rebounded by 2.5%. Energy stock were on the nose following a fall in crude prices with WPL down 2.0% and STO down 1.2%. In corporate news, APT fell hard by 12.1% after AUSTRAC moves for an independent auditor and dragged tech sector with it. Retailers were under pressure with HVN down 7.2% and JBH down 4.5%. WES fell 5.4% after updating the market on the outlook for Kmart. CGF were 8.9% weaker following another disappointing earnings update. On the economic front, unemployment came in unchanged at 5.2%, with a record high participation rate of 65.9%. AUD slipped slightly on the news trading around 69.20c. Asian markets were mixed with hot spot HK down 0.86% as the crucial vote was delayed another day. China gained slightly by 0.06% and Japan fell 0.55%.

Todays Highlights

  • ASX 200 fell 1 to 6542. Enthusiasm wanes again.
  • High 6563 Low 6534. Closes on lows
  • Unemployment rate fails to stir spirits.
  • RBA may have its excuse to cut again.
  • 3-year yield drops below 1% for first time ever.
  • QLD approves Adani coal mine.
  • CBA sells Count Financial for $2.5m.
  • Banks firm and miners ease. Energy under pressure.
  • WES updates Kmart outlook.
  • APT whacked on AUSTRA issues.
  • AUD drifts lower to 69.11c on jobs number.
  • Aussie Gold slightly better at $1933 on lower dollar.
  • Bitcoin slightly better to US$8124
  • US futures down 44
  • Asian markets weaker with Japan down 0.55% and China up 0.06%

STOCKS

  • APT -12.05% AUSTRAC move sees falls to below recent issue price.
  • FXL -5.75% ISX -6.06% and Z1P -5.28% BNPL sector under pressure.
  • WHC -5.68% coal price woes as Adani approved.
  • PGL -7.32% not prospering today.
  • CGF -9.03% earnings update.
  • HVN -7.2% JBH -4.50% slammed on retail outlook.
  • DDR +5.90% momentum continues
  • M7T +16.25% buyers back in.
  • HLO +1.32% NZ network increases.
  • COL -0.30% strategic review. Cuts 450 jobs at head office.
  • RHL -3.04% ACCC raises a flag to takeover.
  • CBA +0.69% has its own Alan Bond moment. In reverse.
  • NTU +12.68% on rare earths buzz.
  • VRL -0.35% from father to son.
  • PMV -4.58% Smiggle issues.
  • IFT -shortfall auction.
  • CCL +2.61% goodness me good to be rid of SPC.
  • PPS +7.14% finally buying by directors.
  • Speculative stock of the Day: Arafura Resources (ARU) +45.00% on big volume as media talks of NAIF support for rare earths and US moves to secure supply.
  • Biggest Risers: DDR, BIN, SLR, GOR, CIA, PRU and AMA
  • Biggest Falls: APT, CGF, HVN, PGL, HVN, APX and ISX

TODAY

  • Stockland (SGP) -2.24% provide a Q3 update. Residential profit is in line with expectations, benefiting from higher margin settlements. The company is on track to achieve 5% FFO growth per security for FY19, which is at the lower end of prior guidance. Residential sales have declined and are not expected to improve over CY19, likely hurting settlement volumes in FY20. The company expects 5,900 residential settlements in FY19.
  • Wesfarmers (WES) –5.15% provide a trading update. Kmart total sales (excluding Kmart Tyre and Auto Service) up 1.0% on last year, however comparable sales fell 0.6%. Target total sales up 0.2% on last year, with comparable sales up 0.5%. The slow down in Kmart sales growth is expected to lead to EBIT of between $385m and $400m for department stores, excluding the KTAS sale. H1 trading outside of department stores is in line with management expectations.
  • Commonwealth Bank (CBA) +0.69% is set to divest Count Financial to CountPlus for $2.5m, subject to a CountPlus shareholder vote held in August. CBA also intends to sell its 35.9% stake in CountPlus “in an orderly manner over time” following the completion of the transaction.
  • Afterpay Touch Group (APT) –12.05% have received notice from AUSTRAC requiring the appointment of an external auditor to carry out an Anti-Money Laundering/Counter Terrorism financing compliance audit. The company responded saying that they have already undertaken various measures to strengthen their framework and they do not expect any impact on the way customers and merchants currently use Afterpay.

ECONOMIC NEWS

  • Unemployment rate unchanged at 5.2% as participation rose to an all-time high of 65.9.
  • The trend unemployment rate remained steady at 5.1 per cent, for the third consecutive month. In May 2019, trend monthly employment increased by around 28,000 persons. Both full-time and part-time employment increased by 14,000 persons. The seasonally adjusted unemployment rate remained steady at 5.2% in May 2019, while the underemployment rate increased by less than 0.1 percentage points to 8.6%.

Trend estimates

  • Full-time employment increased 13,900 to 8,799,800 persons and part-time employment increased 14,500 to 4,056,800 persons.
  • Unemployment increased 5,800 to 695,200 persons.
  • Unemployment rate remained steady at 5.1%.
  • Participation rate increased 0.1 pts to 65.9%.
  • Monthly hours worked in all jobs increased 3.3 million hours to 1,782.1 million hours.
  • Three-year bond yield has fallen below 1% for the first time ever.

BOND MARKETS

  • 2-Year bond yields down 3bps to 1.01%
  • 5-Year yields down 3bps to 1.06%
  • 10-Year yields down 2bps to 1.41%

ASIAN NEWS

  • Taiwan president Tsai Ing-wen won her party’s primary for the upcoming presidential election.
  • China, long the champion of Electric Vehicles (EVs), is cutting subsidies to the car makers.

EUROPEAN AND US HEADLINES

  • Amazon sued in US for recording children without their consent.
  • Turkey has “already bought” a Russian S-400 air defence system, Recep Tayyip Erdogan declared today.
  • Boris promises ‘guts and courage’ to woo the Conservative party as he looks a shoe in for the leadership. Cometh the hour, cometh the Boris. Daylight second for bookies.

  • Trumps points to his head when asked when the Chinese talks deadline is. European/Russian pipeline now in his sights.
  • German CPI up 1.3% YoY.
  • Oil tanker is on fire in Gulf of Oman. Oil spikes?

And finally……..

    1. Today at the bank, an old lady asked me to help check her balance. So I pushed her over.
    2. I bought some shoes from a drug dealer. I don’t know what he laced them with, but I’ve been tripping all day.
    3. I told my girlfriend she drew her eyebrows too high. She seemed surprised.
    4. My dog used to chase people on a bike a lot. It got so bad, finally I had to take his bike away.
    5. I’m so good at sleeping. I can do it with my eyes closed.

Joke about going home from work

    1. My boss told me to have a good day.. so I went home.
    2. Why is Peter Pan always flying? He neverlands.
    3. A woman walks into a library and asked if they had any books about paranoia. The librarian says “They’re right behind you!”
    4. The other day, my wife asked me to pass her lipstick but I accidentally passed her a glue stick. She still isn’t talking to me.
    5. Why do blind people hate skydiving? It scares the hell out of their dogs.
    6. When you look really closely, all mirrors look like eyeballs.
    7. My friend says to me: “What rhymes with orange” I said: “No it doesn’t”
    8. What do you call a guy with a rubber toe? Roberto.
    9. What did the pirate say when he turned 80 years old? Aye matey.

Fun flamingo joke

    1. My wife told me I had to stop acting like a flamingo. So I had to put my foot down.
    2. I couldn’t figure out why the baseball kept getting larger. Then it hit me.
    3. Why did the old man fall in the well? Because he couldn’t see that well.
    4. I ate a clock yesterday, it was very time consuming.
    5. Whatdya call a frenchman wearing sandals? Phillipe Phillope.
    6. A blind man walks into a bar. And a table. And a chair.

Clarence

XXX

mt_tryforfree

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