ASX 200 jumps 41 points as all time high beckons. Closes at 6818. Late charge for the line. Tomorrow will be the day. US futures up 47. Banks and a broad based consumer sector rally helped propoel the market within striking distance of the November 2007 high. CBA up 0.8% and MQG up 0.9% after a tepid start following its AGM. Consumer stocks were firm with WOW up 1.3%, COL up 1.5% and WES up 1.4%. Interest rate sensitive stocks firmed with boring TCL up 1.4%. AUD exposed stocks also rallied after the RBA chief suggested that rates will head lower. A2M up 2.3% and TWE up 2.7%. In corporate news, GBT had yet another bid, and remains in a trading halt. Miners though suffered as iron ore fell dragging FMG lower by 5.5% after a production report and BHP down 1.8% and RIO down 4.2%. Gold miners too had a day of mixed fortunes with EVN down 2.22% on a downgrade following its quarterly. In bond markets rates again under pressure with 10-year yields down to 1.23%. AUD is 69.70c and Asian markets

Todays Highlights

  • ASX 200 up 41 to 68018.
  • High 6818 Low 6771. High beckons.
  • Banks blast off as yield attracts. MQG AGM reveals nothing new.
  • Iron ore miners in the doghouse. FMG the biggest casualty.
  • Across the board gains.
  • Interest rate sensitive stocks pushing ahead.
  • RBA head says lower rates are coming.
  • AUD slips to 69.70c
  • Aussie gold rallies to $2041.
  • Bitcoin falls to $10083.
  • US futures up 47.
  • Asian markets were better with Japan up 0.34% and China strong up 0.75%

STOCKS

  • IFL +6.92% FUMA better than expected.
  • PGL +6.17% broker upgrades help.
  • PRU +5.84% positive drill results.
  • PSI +2.22% acquisition and placement.
  • BVS +3.96% GBT gets yet another bid.
  • XRO +3.00% keeps heading higher.
  • APE +1.18% /AHG +1.38% gets green light to merge with conditions.
  • FMG -5.50% production report disappoints on costs.
  • CVN -4.71 % placement completed.
  • ECX -4.08% broker downgrade.
  • NST -5.47% gold miners under pressure.
  • KAR +12.40% Bauna acquisition in Brazil.
  • WZR +6.06% signs SIQ.
  • OVH +17.11% quarterly business update.
  • SWM +9.41% enjoying Masterchef changes.
  • ARV +11.11% newsletter recommendation.
  • Speculative stock of the Day: Imhealth (IHL) +24.59% Dr Sud Agarwal appointed CMP and director. Market likes this guy clearly.
  • Biggest Risers: SWM, IFL, PGL, NUF, PRU, NWH and ISX
  • Biggest Falls: GTK, ILU, FMG,NSR, CVN , Z1P and MGX.

TODAY

  • Newcrest Mining (NCM) –0.68% FY gold production of 2,488koz fell within the guided range of 2350koz-2600koz. Copper production of 106kt also met guidance of 100-110kt. Group AISC was $738/oz, up 12% on last year. In the June quarter gold production rose 6% and Copper production rose 14%, while the Group AISC fell $18 to $720/oz. The Group AISC margin rose $26 to $589/oz.
  • Carnarvon Petroleum (CVN) -4.71% has raised $84m in a placement at 39c to fund its share of the highly lucrative Dorado project off the NW shelf. There are some suggestions too that BPT is looking at the company as a growth play. RBC has its net asset value at 80c, but the raising is expected to modestly dilute that value estimate. Dorado is the third-largest oil discovery made in the North West Shelf area.
  • Macquarie Group (MQG) +0.90% AGM today. Operating groups are performing in line with expectations. 1Q20 net profit in line with 1Q19 but down on the positive 4Q19 result. The Outlook statement is still pointing to a result slightly down on last year. Macquarie Asset Management (MAM) was down mainly due to the timing of performance fees and higher operating expenses following recent platform acquisitions.
  • Fortescue Metals (FMG) –5.50% FY19 shipments were within guidance, totalling 167.7Mt, while FY C1 costs were up 6% to $13.11wmt. Average revenue received in Q4 rose 30% from the prior quarter up to $92/dmt. FY20 guidance is for 170-175Mt of shipments, with C1 costs of $13.25-$13.75/wmt. A total dividend pay-out ratio of 50-80% of FY NPAT is expected.
  • IOOF Holdings (IFL) +6.92% report total FUMA of $149.52bn at June 30, up 3.4% from March 31. Net flows for the June quarter totalled $473m.

ECONOMIC NEWS

  • In a speech today, RBA head Phillip Lowe has restated that he will cut rates if economic growth ‘is not sufficient ‘ to lift inflation in a ‘reasonable timeframe.’ Doesn’t look as if we will see higher rates anytime soon.

BOND MARKETS

  • 2-Year bond yields fell 3bps to 0.87%
  • 5-Year yields fell 3bps to 0.90%
  • 10-Year yields fell 3bps to 1.23%

ASIAN NEWS

  • North Korea has restarted its missile launches as US talks go nowhere.
  • US sailed a warship through the Straits of Taiwan just to keep the pressure up on China.
  • SK Hynix reported its net profit fell in the second quarter on weak chip prices as trade disputes between South Korea and Japan added to uncertainty about the industry outlook.

EUROPEAN AND US NEWS

  • 98. Boris says no ifs or buts. It out by then. Deal or no deal.
  • Salesforce has partnered with Chinese ecommerce company Alibaba as it seeks to expand its footprint in China’s software market.
  • Total Q2 adj net profit down 19%. Plenty of other eurostars reporting tonight too. Diageo sales GBP 12.9bn Profit up 9.5%
  • ECB tonight. Big night.

And finally

I proposed to my ex-wife. But she said no. She believes I’m just after my money.

 

Boy complains to his father: You told me to put a potato in my swimming trunks! You said it would impress the girls at the pool! But you forgot to mention one thing!

Father: Really, what?

Boy: That the potato should go in the front.

 

I just got a photo from a speed camera through the mail. I sent it right back – way too expensive and really bad quality.

Clarence

XXX

mt_tryforfree

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