ASX 200 was hit and hit hard down 128 points to 6640 at the close, low for the day. Trading volumes picked up despite a NSW Bank Holiday. US futures down 300. We started the week in a bad mood and things escalated as Asia came online and the yuan slipped below 7 USD for the first time in a decade. China also halted crop imports from US. Broad based losses with acceleration around lunch time as stops and technical selling was triggered. Big miners under severe pressure with BHP down 3.6% and FMG down 7.2%. Energy stocks also under pressure with WPL down 1.8% and STO falling 2.4% although OSH +2.9% perked up on some good news on PNG LNG. Gold miners though were in demand. SBM up 1.1% and EVN up 1.9% as Diggers kicked off today. Banks were under the knife after some good solid sessions, with CBA down 0.8% and WBC down 1.2%. Insurers and other financials fell led by QBE down 2.4% and MQG down 2.1%. Healthcare fell led by CSL down 2.4% and staples collapsed with TWE down 1.7% and WOW down 0.5%. TLS hit the skids down 1.3% and tech stocks fared badly. WTC dropped 8.1% and APT joined the action to the downside falling 7.8%. In corporate news, Fox Corp made a takeover bid for CRD at 221c. WES got the nod from the ACCC to takeout Catch Group and rose 0.8%. CRN fell 2.7% after announcing a 60c interim distribution. Economic news was bleak with bad car sales and a woeful local PMI. Asian markets were dominated by the yuan and new trade war fears with China down 1.1% and Japan down 2.34%.
- ASX 200 down 128 to 6640
- High 6765 Low 6639.
- Chinese yuan weakens below 7 USD.
- Trade war spills into currency war.
- China halts crop imports.
- Miners smashed. Banks hurt but less so..
- Few bright spots except gold miners enjoying bullion rise.
- Tech darlings in dog house.
- Diggers and Dealers kick off.
- AUD lower at 67.74c
- Aussie gold eases to $2143.
- Bitcoin rises to $11555.
- US futures down 34
- Asian markets sold off as Carrie Lam holds on defiantly in HK. Japan down 2.3% and China down 1.1%
- AQG +4.67% PRU +7.48% all that glistens.
- AAC +3.47% cattle prices.
- OSH +2.88% positive rumblings from PNG government on LNG.
- DDR -13.74% the wipe out continues.
- PNV -6.53% too much skin in the game.
- APX -10.61% darlings slide.
- Z1P -9.91% NEA -7.10% PME -8.59%.
- APT -7.81% BNPL under pressure.
- ADT -11.17% under pressure too.
- PNR +10.53% investors presentation.
- BRU +11.54% drilling update.
- CRD +6.31% takeover by Fox and Friends.
- TEK unchanged owns CRD.
- Speculative stock of the day: Nothing significant. Golden Rim Resources (GMR) +58.33% on decent volume after reporting a 784g/t Bonanza intercept at Kouri in West Africa at its Diabalou graphic target.
- Biggest Risers: PRU, SLR, WGX, AQG, RSG and VGI
- Biggest Falls: DDR, APX, CIA, Z1P, PME. EML and WTC.
- Coronado Global Resources (CRN) –2.74% First half results; net profit up 92% to $214.3m, revenue beat expectations at $1.23bn vs consensus of $1.12bn. Adjusted EBITDA came in at $405.4m vs consensus of $393.9m. An interim dividend of 41c per CDI was declared. Full-year guidance reaffirmed, adjusted EBITDA is expected to be between $737m-807m and production is expected to be between 21.1-21.6mt. Costs are forecast to be between $51-52pt. CRN also announced a new Curragh mine plan targeting 15Mt of annual saleable production by 2023.
- Flight Centre (FLT) –0.85% Has acquired Canadian corporate travel business Les Voyages du Vallon (LDV). The terms are currently confidential and have not been disclosed.
- Wesfarmers (WES) +0.77% ACCC has said it won’t oppose the $230m merger with online retailer Catch Group.
- Rhipe (RHP) -9.75% To acquire Network2Share for $2m upfront. The deal also includes $3m in performance-based consideration plus further earn-out. RHP does not intend to change its previously stated operating profit guidance of A$16M for FY20.
- Credible Labs (CRD) +6.31% Has agreed to merge with a subsidiary of Fox Corporation for $585m. Shareholders will receive 221c per CDI listed on the ASX.
- Oil Search (OSH) +2.88% encouraging release from the PNG government regarding the Papua Gas Agreement.
- Australia AiG Performance of Services Index Jul 43.9 (prev 52.2). This is not a great number.
- Melbourne Institute Inflation Gauge July: 0.3%/mth to 1.8%/yr.
- The Federal Chamber of Automotive Industries (FCAI) reported that through July, 83,184 vehicles were sold around the country, down 2.8% on July last year despite an extra selling day in 2019. Sales in NSW were down 4.7% in July last year while in Victoria they were down by 2.8%. Sales of the nation’s best-selling make, the Toyota HiLux, were down 10.4% in July. Sign of the slowdown in construction activity. Toyota Corolla knocked off the Ford (lone) Ranger ute as the No.2 selling model nationally.
- 2-Year bond yields unchanged at 0.78%
- 5-Year yields unchanged at 0.77%
- 10-Year yields unchanged at 1.08%
- HSBC loses its CEO after just 18 months. Shock departure.
- Carrie Lam toughs it out in Hong Kong. Not a good look.
- South Korea will invest US$6.5bn to shore up its electronics industry.
- Private sector business activity in Hong Kong plunged to its lowest level since the financial crisis, a private survey showed on Monday
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