The ASX 200 hit an 11½ year high up 32 to 6685. Everything coming up roses. US Futures down 11. Independence Day beckons. After a tepid start, confidence grew on trade numbers and continued strength in the iron ore price in Asia. Miners led the market higher with BHP up 0.1% and FMG up 2.4%. Gold miners raced ahead too as AUD bullion prices hit $2037 again. NCM up 1.7% and EVN up 3%. The energy stocks were soggy though, on the lower oil price with STO down 4.2% and WPL down 2.4%. Banks shrugged off early losses to finish mixed with NAB doing the best up 0.5%. Bond proxies were in demand again. Lower rates are good for the likes of TCL up 2.7% and GMG up 3.1%. Healthcare slipped with CSL down 0.35% and RHC -1.4%. TLS in the green again up 1.3%. In corporate news, WOW announced it would shed its booze and pokies business in Dry July and would demerge this $10bn behemoth next year. WOW rose 2.7% on the news. WES followed suit up 0.75%. Tech was feeling a little left out today with no significant moves, even APT was calm up only 1.15%. Economic news on a record trade balance, failed to move the currency with the AUD hovering just under 70c at 69.96c. Asian markets weakened with Japan down 0.73% and China down 0.92%. Bond yields fell yet again.

Today’s Highlights

• ASX 200 up 32 to 6685 as miners drive markets higher.
• High 6692  Low 6642
• Iron ore miners lead the charge to 6700.
• Banks turn around early losses.
• Bond proxies in demand.
• Energy stocks under pressure. Goild miners do well.
• AUD stirs slightly up to 69.96c
• Aussie gold back up to $2038.
• Bitcoin bounces to $11443
• US futures down 11
• Asian markets weaker with Japan down 0.73% and China down 0.92%.

STOCKS

• GBT +15.16% after SS&C Tech bid 360c ahead of rival FNZ.
• WBC -0.11% CBA -0.12 % cut more than RBA on IO loans.
• SUN +1.71% cuts rates by 19bps.
• WOW +2.70% to shed pokies and booze.Dry July.
• PNV +7.74% rally continues.
• GOR +5.16% gold back.
• A2M +3.53% dairy stocks stirring.
• TPM +1.83% VOC woes perhaps.
• SDA -16.50% broker downgrades.
• FAR -10.00% risks build for Senegal.
• NWL -5.37% AFR report on negative rates on Macbank research
• HUB -4.14% responds to AFR report.
• BPT -6.37% Perth Basin update.
• VOC -2.74% Strategy day.
• PET -1.33% profit taking.
• ADT -6.55% profit taking.
• CGL +5.33% thin trade. Broker update.
• Speculative stock of the Day: Silver Chef (SIV) +129.03% how the mighty have fallen. This has been a horror story and has been finally put out of its misery with a scheme of implementation agreement to be implemented to take over the company at 70c. Complicated deal, with a method of sharing in upside possible too.
• Biggest Risers: PNV, NUF, GOR, SLR, SBM, SAR and A2M
• Biggest Falls: AFR, BPT, PLS, NWL, STO, HUB and DHG.

TODAY

• Vocus Group (VOC) –2.74% Reaffirms FY19 underlying EBITDA guidance of $350m to $370m, FY20 underlying EBITDA is anticipated to be similar, as growth in its network services business is expected to be offset by a fall in its retail business.
• Woolworths Group (WOW) +2.70% Is looking to exit its pokies business next year. WOW this morning said it planned to join its bottle shop and pubs divisions with the intention to demerge or sell in 2020. The merger of Endeavour Drinks and ALH would create Australia’s largest integrated drinks and hospitality business with sales of approximately $10bn and EBITDA of $1bn. Management changes were also announced, Group CFO David Marr will move to the new role of COO.
• CIMIC Group (CIM) +1.46% Subsidiary UGL has secured a 5-year contract extension with Sydney Trains to provide maintenance and logistics services.
• GBST Holdings (GBT) +15.16% Has received two further non-binding takeover offers. SS&C Technologies has revised its bid 10% higher to 360c per share after a counteroffer was made by the parent company of Wellington-based FNZ Custodians to acquire the business for 350c per share cash.
• HUB24 (HUB) -4.14% responded to an article in the AFR this morning citing Macquarie’s work on negative yields for wealth platforms. Netwealth (NWL) -5.37%. Did not respond.

ECONOMIC NEWS

• The AIG Performance of Services Index in Australia edged down to 52.2 in June 2019 from an eight-month high of 52.5 in May.
• Trade surplus to a record $5.7bn against forecasts of $5.2bn. Iron ore the star.
• Exports to China during May surged 18%, quantities were up 14% and unit values up 4%.

• According to the Federal Chamber of Automative Industries, there were 117,817 vehicles sold in June, a 9.6 % drop on the same month last year.
• They were down by 10.7% in NSW and 11.2% in Queensland, while in Victoria they were off by 7.6%. In perhaps the sickest economy in the country, the Northern Territory, sales were down by 31.4%.
• Australians pour more than $3.9bn down the drain on paid apps, services and memberships we don’t use. Three in five Australians pay for services or subscriptions they have forgotten about, while almost half (44%) have never cancelled subscriptions they weren’t using.
• Building Approvals – The number of dwellings approved in Australia fell by 0.5% in May, in trend terms. Among the states and territories, total dwelling approvals fell in the Northern Territory (6.1%), Tasmania (3.9%), Victoria (1.5%), Western Australia (0.7%) and New South Wales (0.7%), in trend terms. Increases were recorded in the Australian Capital Territory (7.2%), South Australia (0.4%) and Queensland (0.4%).

BOND MARKETS

• 2-Year bond yields fall 3bps to 0.93%
• 5-Year yields fall 4bps to 0.98%
• 10-Year yields fall 4bps to 1.29%

ASIAN NEWS

• Trump not playing nice with an old foe as US slaps 400% duties on Vietnamese steel.
• Chinese Caixin services  PMIdrop to month month low.
• South Korea is cutting its growth forecast as trade war bites.
• China is firing anti-ship missiles in the South China Sea as part of a test window which the US has called ‘truly disturbing’.

EUROPEAN AND US HEADLINES

• Flat start to Euro markets with a slight positive bias.
• Tesla has delivered a record number of cars in second quarter.
• Broadcom on the verge of agreeing to a deal to buy Symantec for $15bn.
• Trump announces two new nominations for Fed board. Christopher Waller and Judy Shelton, both doves and would support Trump’s push for easier monetary policy.
• Andy Murray has teamed up with Serena Williams in the mixed doubles at Wimbledon.

And finally…………..

 

What is black and is stuck to a ceiling?

A not very good electrician.

 

I was hiking once with my girlfriend. Suddenly a huge brown bear was charging at us, really mad. We must have come close to her cubs. Luckily I had my 9mm pistol with me. One shot to my girlfriend’s kneecap was all it took. I could walk away at a comfortable pace.

 

A priests asks the convicted murderer at the electric chair, “Do you have any last requests?”
–
“Yes,” replies the murderer. “Can you please hold my hand?”

 

Sorry about this one

 

A packet of condoms, please.

That’ll be $3,99. Do you want a bag with it?

Nah I’m OK. She’s actually quite pretty

Clarence

XXX