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One of these pictures is from the last big bull market in the 80s !!!!Years have not been kind!

The ASX 200 finished the week down 37 points to 6651, as profit taking crept in. Up 97 points for the week. US futures slipped a little in the rarified atmosphere. CSL led the market down falling 3.2% after an update on its China distribution arrangements. Banks too saw profit taking after such a good run, though miners pushed ahead as iron ore continued higher and oil stocks soared on crude price rises. WPL up 2.4% and BHP up 0.4% were overshadowed by FMG up 1.7% though RIO were relatively steady with a mere 0.1% rise. Gold sits at a 6-year high helping local miners higher, NCM up 0.7% and RRL up 2.6% though others surprisingly fell despite AUD hitting $2025 with EVN down 2% . In corporate news, ADH released an earnings downgrade and fell 31.3%. Aussie bonds again rallied sending yields lower again, 10-years at 1.27%. Asian markets slipped slightly, despite US rally with Japan down 1% and China down 0.1%. AUD creeping higher to 69.33c

Todays Highlights

  • ASX 200 drops 40 top 6647 as a new high is a bridge too far.
  • High 6691 Low 6641.Up 97 points for the week (1.52%).
  • Big Bank Basket now $165.85.
  • Banks and healthcare drag index lower.
  • Energy stocks in demand.
  • Gold stocks muted as AUD rises.
  • 3rd anniversary of Brexit vote this weekend. How time flies.
  • Quadruple witching in US index and equity, futures and options.
  • AUD rallying back to 69.29c
  • Aussie gold firmer at $2016.
  • Bitcoin higher to US$9741
  • US futures down 62.
  • Asian markets weaker with Japan down 1.02% and China down 0.12%

STOCKS

  • NHC +9.02% WHC +2.70% coal fires up.
  • WGX +12.08% gold shares rally.
  • GOR +8.25% good to see.
  • PNV +4.23% momentum continues
  • ADH -31.32% profit downgrade.
  • CSL -3.17% little troubles in big China.
  • CUV +0.26% moves office. Really.
  • SWM +2.13% bargain hunters step in.
  • CKF -5.93% MD and CEO succession planning.
  • Z1P -4.28% new company secretary.
  • NEA -2.60% tech profit taking.
  • DDR -8.97% profit taking.
  • JIN +3.08% $80m Jackpot next week.
  • MGX +5.05% iron ore price.
  • CIA -1.54% feasibility study released.
  • SYR -8.98% equity raising.
  • GPT +0.64% took three hours to raise $800m.
  • Speculative stock of the Day: VGI Partners (VGI) +86.18% New float kicked off today. Good volume and stunning debut. Hats off.
  • Biggest Risers: WGX, NHC, GOR, IRI, CVN, CGC and MGX.
  • Biggest Falls: DDR, ALG, TNE, CKF, JMS, PPC and HT1.

TODAY

  • CSL Limited (CSL) –3.17% Update on transition to own distributer model in China. Expects one-off financial effect in FY20, now guides lower Albumin sales between $340-$370m. Sales are expected to return to normal levels in FY21. A modest hit to cash flows is also anticipated.
  • Boral (BLD) +1.33% Enters onto a property development deal with Mirvac in relation to its Scoresby site. Mirvac will manage the urban development of the 171-hectare site over a multidecade period, including a proposed new housing community and substantial new parklands. Boral expects approximately $30m EBITDA from Property earnings in FY19, as previously guided.
  • Collins Foods Limited (CKF) –5.93% MD and CEO Graham Maxwell to retire on July 1, Drew O’Malley, current COO to take over the role.
  • Adairs (ADH) –31.32% Downgrades total sales guidance, now expected to be between $340m-$345m, vs prior $340m-$355m. From the start of June, Adairs has observed an adverse change in its trading momentum. Like for like (LFL) sales growth since the 27th of May has been flat, with significant volatility observed week to week.

ECONOMIC NEWS

  • Commonwealth Bank ‘flash’ purchasing managers index for services rose from 51.5 to 53.3 in June. Composite PMI rose from 51.5 to 53.1 in June.
  • The numbers signalled a further pick up in growth momentum across the Australian private sector.
  • Output and new business both expanded at the steepest rates for seven months amid reports of firmer underlying demand conditions.
  • Consequently, outstanding workloads rose solidly, leading firms to raise their staffing levels for the second month in a row.
  • On the prices front, input costs rose at the sharpest pace since last November, but the rate of selling price inflation remained modest.
  • ANZ is now forecasting two rate cuts by August.

BOND MARKETS

  • 2-Year bond yields fall 3bps to 0.90%
  • 5-Year yields fall 2bps to 0.94%
  • 10-Year yields fall 2bps to 1.27%

ASIAN NEWS

  • Hong Kong protests back on again.
  • Japanese manufacturing activity slipped again in June,a private survey showed. Consumer prices grew in line with forecasts in May.

EUROPEAN AND US HEADLINES

  • Quadruple witching day in US. Could bring some extra volatility. Futures and options on index and equity expire today. Good luck.
  • Trump had approved strikes on Iran then pulled back. Putin says war with Iran would be ‘catastrophic’. Trump says it is hard to believe that anyone would be so dumb to shoot down a drone. FAA bans US planes from flying over Iranian airspace. Drone was in international waters as it was documented scientifically not just words.
  • In the UK it is ‘mano v mano’ with a faceoff between Jeremy Hunt and Boris Johnson for leadership of the Conservative Party and PM.
  • The EU has failed to agree on its new presidency and its back to the drawing board. Early leaders scrapped.
  • Walmart has paid $285m to settle a corruption claims involving its operations in Mexico, Brazil, China and India.
  • Slack lists in NY, up 48% on debut.
  • The price of war risk insurance in the Gulf of Hormuz is now US$180k up from US$130k last month. Just adds to the oil costs as tensions rise.

And finally…

get up

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,omey

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Clarence

XXX

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Get a Global take on things at www.ntmarkets.com

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