ASX 200 up 24 points to 6690 as rally fades ahead of the Fed. US futures down 16. Banks were the early driver as S&P upgraded the outlook and all was forgiven from the previous sessions., CBA rose 0.3% and NAB up 0.7%. Miners though fell despite the iron ore price rallying. We seem to be responding less and less to the gyrations. BHP fell 0.2% and RIO down 0.6%. Bond proxies were in demand again, TCL up 1.3% ahead of the Westconnex opening this weekend. TLS slipped 0.3% as the minister rejected some speculation for NBN ownership. In corporate news, the regulator has pushed back on suggestions it is making it too hard for banks to make loans. Nothing much else today although consumer confidence fell to a 2-year low despite tax cuts and the election. Asian markets were cautious ahead of Powell with China up 0.07% and Japan down 0.08%. The AUD was steady at 69.25c and 10-year bonds at 1.35% rising 3bps.

Todays Highlights

• ASX 200 rises 24 to 6690. Cautious trade. Off highs.
• High 6718 Low 6669.
• Banks lead gain but off highs.
• Miners fail to launch.
• Bond proxies in demand.
• Consumer stocks doing well.
• AUD steady at 69.25c
• Aussie gold falls to 2012
• Bitcoin jumps to $13037
• US futures down 16.
• Asian markets fell with Japan down 1.07% and China in the dog house down 2.26%

STOCKS

• A2M 8.00% broker upgrade.
• PET +0.71% pet shop boys doing well, guidance update.
• CVN +6.74% quarterly report.
• BRG +3.53% bounces higher.
• WTC +4.03% hitting highs.
• PNV -6.56% had to happen. Profit taking.
• PLS -4.85% broker downgrade.
• SYR +9.57% short squeeze.
• EXL +7.52% hemp back in focus.
• EVN -2.26% production update.
• ADT -4.96% profit taking continues.
• DCN +21.90% FY20 guidance and update LOM plan.
• FLC +15.15% leading newsletter recommendation.
• M7T +19.57% going to Mach 2.
• Speculative stock of the Day: Invex Therapeutics (IXC) +41.90% only recently listed on 5^th July at 40c. Now a 7+-bagger. This new biotech is repurposing existing drug, Exenatide, to treat conditions in obese women primarily of child bearing age.
• Biggest Risers: A2M, CVN, PME, REH, PMV, PRU, PNI and AHG.
• Biggest Falls: PNV, PLS, CTK, CRN, CDA, AAC and APL

TODAY

• Bell Financial Group (BFG) +7.69% Expects a first-half profit (before tax) of $22.5m, up almost 60% on the previous corresponding period. Earnings per share are expected to be around 5c, up 35% compared to the same period in 2018.
• Evolution Mining (EVN) –2.26% Preliminary FY19 operating result and FY20 guidance; FY19 Group gold production of 753,001 ounces was above the midpoint of guidance. FY19 AISC achieved was above the top of the $850–$900 per ounce guidance range at $924 per ounce. Outlook unchanged for FY20, expects production of between 725-775Koz. AISC guidance has been revised higher now expected to be between $890-$940 per ounce.
• Retail Food Group (RFG) +2.33% Last night said it is looking at potential options for divestment of its non-core assets. RFG also confirmed it had received an indicative non-binding proposal from Soliton Capital Partners, an investment fund…to provide approximately $160m to recapitalise the Company. Discussions are at an advanced stage.

ECONOMIC NEWS

• The Westpac-Melbourne Institute Index of Consumer Sentiment fell 4.1% to 96.5 in July from 100.7 in June. WBC’s senior economist, Mathew Hassan, considered the fall in confidence troubling, given the supportive backdrop regarding rate cuts, tax concessions and housing market stability.

STOCKS

• A2M 8.00 broker upgrade.
• PET +0.71% pet shop boys doing well, guidance update.
• CVN +6.74% quarterly report.
• BRG +3.53% bounces higher.
• WTC +4.03% hitting highs.
• PNV -6.56% had to happen. Profit taking.
• PLS -4.85% broker downgrade.
• SYR +9.57% short squeeze.
• EXL +7.52% hemp back in focus.
• EVN -2.26% production update.
• ADT -4.96% profit taking continues.
• DCN +21.90% FY20 guidance and update LOM plan.
• FLC +15.15% leading newsletter recommendation.
• M7T +19.57% going to Mach 2.
• Speculative stock of the Day: Invex Therapeutics (IXC) +41.90% only recently listed on 5^th July at 40c. Now a 7+-bagger. This new biotech is repurposing existing drug, Exenatide, to treat conditions in obese women primarily of child bearing age.Must be teh best IPO of the year by a country mile.
• Biggest Risers: A2M, CVN, PME, REH, PMV, PRU, PNI and AHG.
• Biggest Falls: PNV, PLS, CTK, CRN, CDA, AAC and APL

TODAY

• Bell Financial Group (BFG) +7.69% Expects a first-half profit (before tax) of $22.5m, up almost 60% on the previous corresponding period. Earnings per share are expected to be around 5c, up 35% compared to the same period in 2018.
• Evolution Mining (EVN) –2.26% Preliminary FY19 operating result and FY20 guidance; FY19 Group gold production of 753,001 ounces was above the midpoint of guidance. FY19 AISC achieved was above the top of the $850–$900 per ounce guidance range at $924 per ounce. Outlook unchanged for FY20, expects production of between 725-775Koz. AISC guidance has been revised higher now expected to be between $890-$940 per ounce.
• Retail Food Group (RFG) +2.33% Last night said it is looking at potential options for divestment of its non-core assets. RFG also confirmed it had received an indicative non-binding proposal from Soliton Capital Partners, an investment fund, to provide approximately $160m to recapitalise the Company. Discussions are at an advanced stage.

ECONOMIC NEWS

• The Westpac-Melbourne Institute Index of Consumer Sentiment fell 4.1% to 96.5 in July from 100.7 in June. WBC’s senior economist, Mathew Hassan, considered the fall in confidence troubling, given the supportive backdrop regarding rate cuts, tax concessions and housing market stability.

BOND MARKETS

• 2-Year bond yields up 3bps at 0.97%
• 5-Year yields up 3bps at 1.02%
• 10-Year yields up 3bps at 1.35%

ASIAN NEWS

• China’s CPI number came in at 2.7% year-on-year in June, unchanged from the previous month’s 15-month high and in line with market expectations.

• China’s PPI number was flat in June, missing market estimates of a 0.2% lift.

EUROPEAN AND US NEWS

• Jay kicks off tonight. Only thing that matters. Until it doesn’t.
• Boeing reports third straight month with zero new orders. Airbus is now officially the world’s biggest airline maker. That will not please Trump and expect a tweet or two. Bring on the Euro trade war.
• Richard Branson has announced plans to launch Virgin Galactic later this year. Wil they be return flights, destinations or just once round and back.Top of the market stuff?
• The times are changing. The US has relaxed some restrictions on Huawei.
• Deutsche Bank is copping some deserved critiscism for paying out EUR52m in golden parachutes to senior executives in the last 14 months. Then sacks 18,000.
• The US/UK diplomatic stoush continues as Trump continues his tirade against the UK ambassador. Boris sits on the fence.

And finally………….

 

Attending a wedding for the first time, a little girl whispered to her mother, “Why is the bride dressed in white?”

“Because white is the color of happiness, and today is the happiest day of her life,” her mother tried to explain, keeping it simple.

The child thought about this for a moment, then said, “So why’s the groom wearing black?”

 

A secretary walked into her boss’s office and said, “I’m afraid I’ve got some bad news for you.”
“Why do you always have to give me bad news?” he complained. “Tell me some good news for once.”
“Alright, here’s some good news,” said the secretary. “You’re not sterile.”

 

 

A man goes into Dymocks and asked the young lady assistant:

“Do you have the new book out for men with short penises?”

“I’m not sure if it’s in yet.”

“That’s the one, I’ll take a copy.”

Thanks to  http://www.jokesoftheday.net/the-best-jokes/

Clarence

XXX