ASX 200 rallied today as banks came back. ASX 200 up 32 points to 6673. US futures up 13 points. Banks too heart form US results and optimism in housing markets to register gains, CBA up 0.6% and NAB up 0.4%. Big miners were steady although BHP +1.4% after a quarterly production report. FMG remain on the nose down 2.1%. RIO becalmed. TLS had a better day up 1.3% and CSL did well up 0.7% as it appointed a new flu vaccine head. Consumer stocks were in demand, WOW up 0.7% and COL up 1.1%. ELD had a very strong day after completing its institutional placement and rose 16.4%. ALL had a broker upgrade up 1.3% and GMG fell 1.1% on some selling pressure. In corporate news, EHE was hit with class action from shareholders involved in an equity swap and allege a breach of market disclosures, falling 5.8%. Volume was again lighter than normal as school holidays continue. In Asian market we saw mixed reactions as Japan fell % and China up %. The AUD was slightly weaker as the USD rallied on hopes of only a 25bps rate cut. Locally bonds were stable with 10-years yielding 1.40%.

Todays Highlights

• ASX 200 rose 32 to 6665.
• High 6675 Low 6627. Quietish trade again.
• Broad gains. Banks lead.
• BHP in demand but FMG misses out.
• Bond proxies ahead again.
• 10-year bond yields rally 8bps
• AUD slips to 70.10c as US rate cuts may be muted.
• Aussie gold steady at 2004.
• Bitcoin falls to $9477 as Libra comes under attack.
• US futures down 9.
• Asian markets mixed with China up 0.16% and Japan down 0.31%

STOCKS

• PET +9.26% back.
• PNV +2.85% turning back up.
• PO3 -5.65% profit taking after 17% rise yesterday.
• ELD +16.44% completion of insto placement.
• GXY -6.59% broker downgrade.
• MIN -5.02% clarification of media article on permitting.
• ANO +12.92% distribution agreement in Europe.
• DMP -5.13% US numbers weigh.
• EHE -5.78% class action.
• BUB +5.98% no kidding on a roll.
• HUB -3.41% some profit taking.
• WSA +8.70%% nickel price rise, shorts squeezed.
• SDA -6.74% chairman’s letter points to trouble at mill.
• IGO +3.80% Copper intersections.
• ISX -1.49% air escaping.
• A40 -11.54% change of company name.
• Speculative stock of the Day: Southern Gold (SAU) +36.36% thin volume but positive announcement on Golden Surprise high grade Au-Ag discovery at Deokon Project, South Korea with assays of 32.4g/t Au and 1,095g/t Ag.
• Biggest Risers: ELD, ASB, PET, WSA, DDR and BUB
• Biggest Falls: GXY, EHE, OMH, DMP, MIN and NCK.

TODAY

• BHP Group (BHP) +1.41% Exceeded full-year production guidance for petroleum and met revised guidance for copper and iron ore. Metallurgical coal and energy coal production was slightly below guidance on the back of lower than expected wash plant yields and adverse weather conditions. BHP expects to meet FY unit cost guidance at Petroleum, Escondida and Western Australia Iron Ore. Queensland Coal and New South Wales Energy Coal unit costs are expected to be marginally above guidance.
• Elders (ELD) +16.44% Completes institutional entitlement offer and placement, raising $100m at 555c per share. 92% of entitlements available to eligible institutional investors were taken up.
• AirXpanders (AXP) – To reduce its workforce and cease operations.
• InvoCare (IVC) –0.67% To acquire Australian Heritage Funerals in Toowoomba, Queensland. Terms undisclosed. The proposed acquisition is expected to be completed by the end of the month.
• Cooper Energy (COE) +1.94% Quarterly production down 2% to 0.32Mboe, full-year production inline with revised guidance at 1.31Mboe. Revenue down 9% to $18.7m. FY20 production expected to be 1.2Mboe before the Sole contribution.
• New Century Resources (NCZ) -5.33% Appoints Robert McDonald as Chairman.
• Estia Health (EHE) -5.78% Has been served with a class action alleging breaches of market disclosure obligations in 2015 & 2016. EHE said it is not in a position to state whether the proceeding is likely to have a material impact on its financial position or performance.
• Austal (ASB) +11.24% Has updated earnings guidance, expects FY19 EBIT of $92m with group revenue expected to be $1.8bn –$1.9bn. EBIT of no less than $105m is anticipated in FY20 driven by improvement in its Australasia shipyards and strong demand from the US Navy.

ECONOMIC NEWS

• The WBC-MI Leading Economic Index fell 0.1% in June, the same pace as in the previous month. The six-month annualized growth rate, which indicates the likely pace of economic activity relative to trend three to nine months into the future, rose to -0.02% in June from -0.47% in May.
• The NAB Residential Property Survey for the second quarter of 2019 showed a seven-point rise in the NAB Residential Property Index to its highest level in 12 months. While sentiment is still at negative 8 points on the index, it has recovered from a survey low of negative 20 in the final quarter of 2018.
• APRA now copping it. Seems that managers are offloading on senior staff because the banks keep lobbying higher up for regulation changes.

BOND MARKETS

• 2-Year bond yields down 1bps to 0.95%
• 5-Year yields down 1bps to 1.01%
• 10-Year yields down 1bps to 1.40%

ASIAN NEWS

• DouYu International, the Chinese video streaming company backed by Tencent, has priced its NASDAQ initial public offering at the lower end of its indicated range.
• Singapore’s non-oil exports slumped by their most in more than six years in June.

EUROPEAN AND US NEWS

• Elon Musk has revealed a ‘breakthrough” for brain implants in paralysed patients.
• The EU has declared war on technology companies it seems. Looks like it will probe how Amazon uses merchant’s data.
• Facebook is facing increasing heat from the US authorities as they line up against the introduction of Libr. Looks like the stalking horse they need.
• Domino’s Pizza in the US is feeling the heat from all the competition from other online food delivery services. Expect a similar thing here.
• The new EU commissioner is Ursula Von der Leyen. That means Lagarde will get the ECB gig. A German and a French woman. Balance is restored. If Von der Leyen hadn’t got the nod, then Lagarde would be in doubt. EU politics at its best.
• Looks like Trump will be censured by the house although only 4 Republicans speaking out against his alleged ‘racism’.
• G7 finance ministers meeting to discuss global tax deals and crypto. Attacked on all fronts.
• Peter Thiel believes that Google should be investigated for ‘treason’. Trump has tweeted maybe.
• US government could run out of money as early as the end of this week again as yet another budget crisis looms.

And finally….with grateful thanks to my friend Stephen Holland , the undisputed King of the Dad joke.

My agent called with some great news. I’ve landed a part in the sequel to ‘The Da Vinci Code”. It’s called ‘I Know What You Did Last Supper’.

You wouldn’t believe it, would you? Last night some individual climbed over our back fence and pinched a pair of my wife’s knickers off the washing line. She’s not bothered about the pants, but she wants the 6 clothes pegs back.

Dropped my boy off at the buffalo farm this morning. I said “Bison.” (Stop me if you’ve herd that one before).

Neighbours got a new dog called Curiosity. They no longer have a cat

Crime update : A gang of thieves is going around shoplifting clothes in order of size. Police say they’re still at large.

Police are hunting a diminutive clairvoyant accused of fraud. Newspaper headline: Small Medium at Large.

Clarence

XXX