ASX 200 slipped another 24 points to 6789 after the Fed rate cut decision. US futures down 12 points. Banks held the line with only CBA slipping slightly by %. Miners were less fortunate with BHP falling by 1.2% and RIO down 1.1% ahead of after hour results. Gold miners and FMG suffered as NCM fell 3.9% and FMG down 2.3%. CSL fell 0.3% leading the healthcare sector lower and consumer stocks also fell with COL down 1.1%. ABC backed up the roughing up yesterday with another 5.9% fall. In corporate news, JHG dropped like a rock down 12.2% on fund outflows and PNV rose 9.4% on a trading update. NUF rose 3.1% after its Japanese shareholder backed it with more funds. In economic news, house prices look to be stabilising and China PMI data came in a little above consensus. AUD was stable at levels not seens since the GFC around 68.45c. Local 10-year bonds held steady at 1.19%. Asian markets saw losses as China fell 0.7% and Japan dropped around 0.05%
- ASX 200 down 24 to 6789.
- High 6806 Low 6781. Average volume.
- Gold miners get sold down heavily.
- BHP and RIO nervous ahead of results.
- Banks firm just not CBA.
- Consumer staples ease.
- Infrastructure stocks still firm.
- AUD lower at 68.49c
- Aussie gold eases to $2058.
- Bitcoin rises to $9984.
- US futures down 1
- Asian markets Asian markets were weaker too, with China down 0.7% and Japan down 0.8%.
- BIN -0.83% broker downgrade.
- PNV +9.38% good trading update.
- JHG -12.20% outflows continue.
- RIO -1.10% results after hours but Turquoise Hill (50.7% RIO) wrote down US$600m in Mongolia.
- CIA -10.97% Q1 financials.
- NUF +3.07% gets help from Japanese backers.
- DDR -3.13% answers ASX query, doesn’t help falls
- NST -7.23% SBM -4.59% and EVN -3.78% gold off.
- ABC -5.93% brokers throw in the towel.
- PME +8.13% replaces DLX in ASX 200.
- JMS +3.70% unusually strong.
- MIN +2.05% sells an extra 10% of project to Albemarle.
- ALX +1.59% foreign ownership restrictions.
- DOW +3.46% wind farm update.
- SAR -3.34% reserve update
- CYB -5.16% broker downgrades.
- PBH +16.90% partners with Penn National Gaming.
- SZL -8.42% sizzle over.
- MQG -0.67% settles with US trader.
- SLC +7.65% competes network and guidance.
- Z1P +0.92% snags Big W.
- Speculative stock of the day: Wellcomm Group (WLL) +29.33% scheme of arrangement with Innocean valuing WLL at $265.8m. 670c bid. Cash.
- Biggest Risers:PNV, PME, IDX, CEN, JMS, DOW and PLS
- Biggest Falls: JHG, CIA, IFM, NST, SLR and ABC
- Janus Henderson Group (JHG) –12.20% report Q2 revenue of 535.9m, missing expectations of $543.2m. Earnings per share came in at 61c, below the expected 66c, and operating income of $152.0m was also below expectations of $164.2m.
- Origin Energy (ORG) –1.13% a bumper pay-out from its Australia Pacific LNG project in QLD, is fuelling hopes for a jump in dividends for ORG. Higher gas prices and lower capital costs have given a $943m pay-out to ORG up around 160% on 2017/18 and is above guidance of $850m. Good news for shareholders. Having suspended its dividend payments to pay down debt, now should be the start of a more generous pay-out policy.
- Northern Star Resources (NST) -7.23% Reserve and resource update. Measured and indicated resources rose by 15% to 11Moz, with the grade lifting 31% to 4.1gpt. The company also provided FY20 guidance of 800k-900koz of gold at AISC $1,200-1,300/oz, as well as an additional 60koz expected to be stockpiled at the Jundee project.
- PolyNovo (PNV) +9.38% trading update. The company has said that current trading is significantly above FY19 and sales for the last quarter were $3.9m which equates to an annual run rate of $15.6m. This does not include sales from South Africa, Israel or the EU.
- Resolute Mining (RSG) -5.35% trade resumed after announcing its US$274m acquisition of African based miner Toro Gold. The company has also revised its FY19 production guidance to 400koz and cost guidance to US$960/oz.
- Home values rose 0.1% in the combined state and territory capitals in July, CoreLogic Inc. data showed. Sydney and Melbourne led the gains, with prices rising 0.2% in each.
- AIG manufacturing index rose 1.9 points in July up to 51.3 points, showing an increase in factory activity through the month.
- CBA Australia manufacturing PMI fell 0.4 points in July down to 51.6 points.
- Five out of eight capital cities saw a small increase in property values in July, with a rise of 0.2% in Sydney, Melbourne and Brisbane, 0.3% in Hobart and 0.4% in Darwin, according to CoreLogic’s latest hedonic home value index.
Here is the Core Logic data
- 2-Year bond yields up 2bps to 0.85%
- 5-Year yields up 2bps to 0.86%
- 10-Year yields up 1bps to 1.19%
- China Caixin July MFG PMI 49.9 against expectations of 49.6 and June of 49.4. Things picking up.
- Exports orders still weak and factories still cutting jobs.
- Hong Kong follows US and cuts rates for first time since 2008. Base rate is now 2.5% to 2.75%.
- South Korean exports declined for the eighth consecutive month in July.
- East Asia’s manufacturing downturn continued in July
EUROPEAN AND US NEWS
- President Donald Trump said Federal Reserve Chairman Jerome Powell “let us down” by delivering an interest-rate cut that’s not aggressive enough. Mid -cycle adjustment now set to enter financial lexicon. USD strengthens on the rate cut.
- Bank of England (BoE) rate decision tonight as the economy weakens and Brexit looms. Nothing expected today.
- AXA 1H net profits fall 17%.
- Vale posts another quarterly loss. Two in a row.
- UBS is planning on implementing ‘negative rates‘ to its rich clients. They will be thrilled.
- Siemens CEO warns of conditions worsening.
- Most important thing is Ashes kick off (?) tonight in Edgbaston.
And finally…………Thanks Al…
The Lone Ranger and Tonto were camping in the wilderness. After they got their tent set up, both men fell sound asleep.
Some hours later, Tonto wakes the Lone Ranger and says,”‘Kemo Sabe, look towards sky, what you see?”
The Lone Ranger replies, “I see millions of stars.”
“What that tell you?” asked Tonto.
The Lone Ranger ponders for a minute then says,
“Astronomically-speaking, it tells me there are millions of galaxies and potentially billions of planets.
Astrologically, it tells me that Saturn is in Leo.
Time-wise, it appears to be approximately a quarter past three in the morning.
Theologically, the Lord is all-powerful and we are small and insignificant.
Meteorologically, it seems we will have a beautiful day tomorrow.
What does it tell you,Tonto?”
“You dumb bugger Kemo Sabe… It mean someone stole tent.”