ASX 200 falls 25 points to 6579 in a quiet day. Dow futures drop 92 points. A soggy start to an important month with ‘make or break’ for the markets. Tariffs arrived today and with no sign of resolution, investors were happy to take some money off the table. Across the board losses in thin trade due to the US Labor Day holiday. Miners bucked the trend with BHP up 0.8% and RIO up 1.4%. Nickel miners had a fabulous day as nickel hit a 5-year high on Indonesian and PNG supply constraints. The usual suspects rallied hard WSA up 14% IGO up 10.3% and POS up 15.8%, in fact, anything that had nickel in its name did well. TLS killed positive sentiment early dropping 2.1% on an update following NBN roll out issues. IPL dropped 4.4% on a huge downgrade to guidance due to the drought and some production issues. In economic news, ABS numbers pointed to a weakening economy and GDP forecast are being wound back. 10 – year bond yields rose 4 bps to 0.92%. The AUD was steady at 67.27c and in Asia markets were mixed as the tariffs came in with Japan down 0.44% and China up 1.31%.

Todays Highlights

  • ASX 200 down 25 to 6579
  • High 6605 Low 6558. Pressure on market.
  • Broad losses.
  • Miners slightly better and nickel miners in focus.
  • Good miners holding up well.
  • AUD steady at 67.27c
  • 10-year yields 0.92%
  • Aussie gold slips to $2267
  • Bitcoin slightly lower to $9786
  • Dow futures down 92
  • Asian markets modestly lower with Japan down 0.44% and China up 1.31%.


  • WSA +14.11% good drill results and nickel price rise.
  • IGO +10.29% nickel tailwind.
  • FNP +4.95% broker upgrades
  • AHG +4.72% change in substantial holding.
  • PNV +4.43% uptrend continues.
  • CGC +6.67% bargain hunters.
  • IPL -4.36% guidance downgraded. Well off lows.
  • NEA -6.59% broker research.
  • APX -3.32% disclosure notice.
  • AMP -2.36% and down she goes again
  • GEM -2.75% selling resumes.
  • BUB -4.45% research report.
  • SDA +23.87% change of director’s interest.
  • POS +15.79% nickel rise.
  • MLX -12.50% Macquarie downgrades PT 16c.
  • STX +5.45% drilling update.
  • EXP +10.42% private equity interest.
  • Speculative stock of the day: St George Mining (SGQ) +21.43% – new nickel-copper sulphide discovery at Mt Alexander. 7.5m thick mineralised interval from 44.2m downhole in drill hole MAD152 at the Radar project.
  • Biggest Risers: OPT, NIC, WSA, IGO, CGC, FNP and AHG
  • Biggest Falls: NEA, BUB, IPL, SSM, BEN and YAL


  • Telstra (TLS) –2.15% Lowers its outlook following the release of NBN Co’s corporate plan 2020 last Friday. The forecast for the total number of premises to be connected in 2020 is down to 1.5m from 2m. TLS no longer anticipates FY20 being the year of peak nbn headwind and now estimates this will occur in FY21. Guidance for total income in FY20 is cut by $400m to between $25.3bn – $27.3bn. Its target for underlying EBITDA is reduced $200m, now expected to be between $600m – $800m. Excluding the headwind from the nbn, guidance for underlying EBITDA rises by $100m to between $7.4bn – $ 7.9bn.

  • Incitec Pivot (IPL) -4.36% revises FY19 EBIT guidance to $285m-295m vs prior $370m-415m. The company will commence a strategic review of Fertilisers Asia Pacific business segment which is expected to take the rest of FY20.
  • LiveHire (LVH) -1.59% Chairman Geoff Morgan to retire, Michael Rennie appointed as his replacement effective August 30.
  • Blackham Resources (BLK) – Reaffirms production guidance for the September quarter of 17,500 – 19,500oz at an AISC of $1,550 – $1750 per ounce.
  • CIMIC (CIM) +1.32% CIM’s Construction arm, CPB Contractors, has won a $323m contract to provide earthworks construction for the Western Sydney International Airport. CBP Contractors was also selected by the Victorian government to deliver the $195m Early Works package for Melbourne’s North-East link.
  • Bank of Queensland (BOQ) -1.31% CEO Anthony Rose to leave the business at the end of the year with CEO-elect George Frazis to commence the role on September 5.


  • CBA Manufacturing PMI for August, Final: 50.9 points, down from 51.6 points in July.
  • CoreLogic Home Price index for August: national +0.8%; capital cities +1%; regional -0.1%.

  • The AIG’s performance of manufacturing index rose 1.8 points to 53.1 in August, supported by a firm rise in sales and production during the month. The production sub-component rose 4.9 points to 53.2 while the sales component added 11.6 points to 54.3. All seven activity indices in the Australian PMI indicated expanding conditions in August, with six of the seven indices indicating a faster rate of expansion,” Ai Group noted.
  • Melbourne Institute monthly inflation gauge was flat in August and up 1.7% over the year.
  • Job ads fell 2.8% in August after rising 5.7% in the previous two months.
  • The seasonally adjusted estimate for company gross operating profits rose 4.5% in the June quarter 2019. The seasonally adjusted estimate for wages and salaries rose 1.4% in the June quarter 2019.


  • 2 – year bond yields rose 1bps to 0.72%
  • 3 – year bond yields rose 2bps to 0.68%
  • 10 – year bond yields up 4bps to 0.92%


  • Caixin China Manufacturing PMI for August: 50.4 points (consensus 49.8 points), up from 49.9 points in July. The market was looking for a result of 49.8; It was 49.9 in July.
  • Over the weekend, official PMIs showed that China’s manufacturing sector dipped to 49.5 in August from 49.7 in July. The services sector PMI rose to 53.8 up from 53.7.
  • One HK top official has not ruled out emergency rule.


  • The UK Government has spent GBP110m on a new website to prepare people for Brexit. Haven’t they had 3 years to prepare and now down to 59 days. Actually 43 business days.
  • Boris has warned Conservative MPs to back him or risk losing pre selection and party suspension. Westminster will be fun this week.
  • Hurricane Dorian batters Bahamas with Cat 5 storm. Heading for Florida. South Caroline has been evacuated.
  • UK Retirees to EU countries stand to lose annual increases after three years if no deal is reached according to media.
  • The August winners

And finally……….

My dad suggested I register for a donor card, he’s a man after my own heart

I heard a rumour that Cadbury is bringing out an oriental chocolate bar. Could be a Chinese Wispa.

Hedgehogs – why can’t they just share the hedge?

Working at the jobcentre has to be a tense job, knowing that if you get fired you still have to come in the next day




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