ASX 200 falls 79 points to 6672 as The Boomtown Rats hit comes to mind. US Futures down 90 points. The rot set in from the off. The stronger than expected US jobs numbers spooked the horses, plus iron ore weakness set the scene. The banks were the big fallers with CBA down 1.2% with insurers under pressure led by QBE down 1.4%. Dalian iron ore ticked higher saving the miners for more heavy losses. FMG rose 0.6% though BHP fell 1.8%. Gold miners were hit with NCM down % and NST down %. Bond proxy stocks were under pressure with TCL down 1.3% and GMG down 3.8%. In corporate news, SS &C Technologies looks like emerging as the winner for up 1.7%, as the board knocked back a higher bid. Villa World rose 1.7% after agreeing to be taken over by AVID. In the bond market, yields rose to 1.32% for 10-years. AUD weaker but stable at 69.91c. Asian markets took a hit with China down 2.26% and Japan down 1.07%.
TODAY’S HIGHLIGHTS
- ASX 200 drops 79 to 6672.
- High 6740 Low 6672. Below average volume.
- Banks led losses.
- Iron ore the catalyst but banks the fallers.
- Miners slipped but could have been worse.
- Dalian ore futures rally slightly.
- CSL and TLS slip.
- Bond proxies under pressure.
- AUD slipping to 69.89c
- Aussie gold falling to 2009.
- Bitcoin steady at $11479.
- US futures down 90.
- Asian markets fell with Japan down 1.07% and China in the dog house down 2.26%
INSIGHTS FROM MARCUSTODAY TEAM
- HENRY’S TAKE – CVN disappoints but looks overdone given it is still drilling. Took some profits in PET and GOR plus a look at the strange and crazy world of bond markets in Europe. German yields are negative until 2040. It’s a mad world.
- IDEA OF THE DAY – With the market up 25% in six months the ASX 200 is within a hundred points of its all time high and overbought on a weekly chart. There are obvious concerns about a correction. We look at the ‘average’ correction. We also look at a billionaire fund manager’s opinion of Trump.
STOCKS
- SPO +14.29% thin volume.
- MSB +7.27% finally some buyers appear.
- PNV +3.80% continues its meteoric run.
- JIN +2.33% few jackpots this week.
- GEM -9.77% broker downgrade. Not sure which one.
- CIA -5.26% iron ore price.
- PNR -23.26% production update.
- ISX +3.47% momentum continues.
- NWL -5.77% HUB -3.85% under pressure again.
- SDA +6.39% ceasing to be a substantial shareholder.
- NET +15.91% response to ASX query.
- SDA +6.39% ceasing to be a substantial shareholder.
- PNR -23.26% disappointing production report.
- ALL +0.48% CWN unchanged only gaming bucked the downdraft.
- MGX -3.23% iron ore price.
- GMG -3.80% REITs under pressure.
- Speculative stock of the Day: Retail Food Group (RFG) +29.41% after an ASX query. Exploring options to reduce debt. Media articles Friday prompted price rise and a speeding ticket.
- Biggest Risers: MSB, RMS, PNV, IMF, ISX CGC and VGI
- Biggest Falls: CVN, GEM, NWL, CIA, HUB, GMG and BGA.
TODAY
- Evans Dixon (ED1) – Appoints Peter Anderson as CEO effective immediately.
- Automotive Holding’s Group (AHG) –1.45% Newswires have reported that US-based Emergent Cold and Lindsay Australia could be interested in AHG’s refrigerated logistics business. While discussions are not thought to be advanced, it is estimated that a deal could be worth between $250m-$300m.
- GBST Holdings (GBT) +1.68% Confirms that it has received an updated proposal from FNZ group at 365c per share. This follows two earlier offers, the first at 315c on Friday the 28th of June and the second at 350c last Monday. FNZ has asked the Takeovers Panel to suspend GBT’s exclusive talks with rival bidder SS&C Technologies after it rejected FNZ’s 365c per share proposal and decided to stick with a 360c per share offer from SS&C Technologies.
- Dacian Gold (DCN) – In trading halt pending update regarding FY20 guidance.
- Villa World (VLW) +1.75% Has accepted a takeover offer from AVID Property Group for $2.345 per share cash.
- Carnarvon Petroleum (CVN) –21.55% drilling update from Roc 1 South. Disappointing but drilling down to lower levels.
ECONOMIC NEWS
- ANZ jobs ads rebounded in June, up 4.6% to 159,717 recovering from a 8.4% slump in May. ANZ’s head of Australian economics, David Plank, said that despite the solid reading, it doesn’t “necessarily represent a turn in the overall downward trend.”
BOND MARKETS
- 2-Year bond yields rise 3bps to 0.97%
- 5-Year yields rise 3bps to 1.02%
- 10-Year yields rise 3bps to 1.33%
ASIAN NEWS
- Media and entertainment company Camsing International plunged by as much as 90% today after it emerged that its chairman and founder has been arrested in China.
- Venture capital deals in China fell in the second quarter amid unpredictable trade talks and growing concerns about startup valuations. The value of investments in the country tumbled 77% to US$9.4bn in the second quarter from a year earlier.
EUROPEAN AND US NEWS
- Deutsche Bank restructure plans claims 18,000 jobs and a new ‘bad bank’ to be created with this plan called the final time. Closes Australian equities. Going to take a big hit. Will cost nearly EUR8bn to restructure. Suspend dividends.
- Turkish President Erdogan has sacked the head of the central bank.
- Julius Baer will appoint Philipp Rickenbacher as its new chief executive, the Swiss private bank announced.
- Greece has a new PM and government about to deliver change. Good luck to new kid Mitsotakis on this one.
- A survey of global fund managers sees the highest expectation of a global recession in four years.
- German trade balance . Exports gains 1.1% MoM Imports down 0.51%. Trump blasts UK ambassador for comments.
- Fed chair Powell will be the focus this week following that jobs number.
And finally…
Bob stood over his tee shot for what seemed an eternity. He waggled, looked up, looked down, waggled again, but didn’t start his back swing.
Finally his exasperated partner asked, “What the hell is taking so long?”
“My wife is up there watching me from the clubhouse,” Bob explained. “I want to make a perfect shot.”
“Good lord!” his companion exclaimed. “You don’t have a snowball’s chance in hell of hitting her from here.” Thanks Hans
There was a preacher who fell in the ocean and he couldn’t swim.
When a boat came by, the captain yelled, “Do you need help, sir?”
The preacher calmly said “No, God will save me.”
A little later, another boat came by and a fisherman asked, “Hey, do you need help?”
The preacher replied again, “No God will save me.”
Eventually the preacher drowned and went to heaven.
The preacher asked God, “Why didn’t you save me?”
God replied, “Fool, I sent you two boats!”
A soldier ran up to a nun. Out of breath he asked, “Please, may I hide under your skirt. I’ll explain later.”
The nun agreed… A moment later two Military Police ran up and asked, “Sister, have you seen a soldier?”
The nun replied, “He went that way.”
After the MPs ran off, the soldier crawled out from under her skirt and said, “I can’t thank you enough, sister. You see, I don’t want to go to Syria.”
The nun said, “I understand completely.”
The soldier added, “I hope I’m not rude, but you have a great pair of legs!”
The nun replied, “If you had looked a little higher, you would have seen a great pair of balls…. I don’t want to go to Syria either.”
Clarence
XXX
Beeks Downunder-Because not all financial news is boring! 