ASX 200 grinds 24 points higher to 6517 in pre long weekend trade. US Futures down 13 points ahead of NFP jobs numbers tonight. 145k and 3.7% are the key numbers. After a tentative start the market gained some confidence as bargain hunters scoured the ASX ahead of the long weekend in NSW. Banks were the weakest link as CBA got hit with criminal prosecutions for Comminsure. The stock ironically rallied 0.3% whilst the other three slipped slightly following news of yet another inquiry this time by the ACCC. Miners and bond proxy stocks were in demand in quiet trade. BHP up 0.4%, RIO up 0.5% and SYD up 1%. Healthcare looked rosy after a broker upgrade for CSL saw the stock move 3.2% higher. Consumer stocks too were bid with WOW up 0.1% and TWE up 0.6% despite tepid retails sales numbers coming in at 0.4%. In corporate news, MFG revealed a slight drop in FUM and rose 0.5%. PTM also announced some changes to remuneration issues around Andrew Clifford and rose 1%. ABS numbers revealed that retail sales had risen 0.4% slightly below forecasts of 0.5%. More reasons for the RBA to cut again in ‘Movember’. 10-year bond yields fell to 0.89% and Asian markets were muted given China remains closed. Japan up 0.2% AUD rallies to 67.55c.

Todays Highlights

• ASX 200 up 24 to 6517
• High 6533 Low 6490. Quiet day for volumes.
• Miners and bind proxies lead market higher.
• Banks under pressure as ACCC launches yet another inquiry.
• Energy stocks do well. CSL gets an upgrade. Consumer stocks do better.
• AUD higher at 67.56c
• 10-year yields 0.89%
• Aussie gold higher at $2233
• Bitcoin rallies hard to US$8087
• US futures down 13.
• China closed and Japan slightly higher up 0.2%.

STOCKS

• KMD +6.80% completes Institutional book build.
• JIN +6.07% cherries keep coming up.
• BIN +5.31% initial director’s interest.
• EOS +2.83% bargain hunting.
• MYX -3.33% profit taking.
• SBM -3.17% production report, still having issues.
• 360 -4.38% miniscule volume.
• RAP +14.81% joins a startup digital health program
• LLC -0.88% broker cuts to neutral.
• CBA +0.32% gets hit with criminal charges.
• CCX +11.20% acquisition of US plus size e-commerce business.
• Speculative stock of the day: Betmakers Tech Group (BET) +54.64% after announcing an international betting giant has signed BET as a global partner.
• Biggest Risers: PAR, IFM, HT1, KMD, JIN, EQT and CUV.
• Biggest Falls: 360, MOE, AVH, MYX, SBM, SGF and BWX.

TODAY

• Magellan (MFG) +0.53% report total FUM of $92.07bn as at September 30, slightly down from the $92.09bn reported in August. The month saw net inflows of $462m, which was made up of $175m of retail inflows and $287m of institutional inflows.
• St Barbara (SBM) -3.17% report Q1 gold production of 87,569oz, down 19.8% from production in the quarter prior. Output fell at each of its gold projects with Gwalia -23.6%, Simberi -25.3% and Atlantic Gold -2.6%.
• Commonwealth Bank (CBA) +0.32% life insurance division ‘CommInsure’ has been charged by ASIC with 87 counts of offering to sell insurance products in non-compliant, unsolicited phone calls between October and December 2014.

ECONOMIC NEWS

• Australian retail turnover rose 0.4% in August 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) Retail Trade figures.
• This follows a relatively unchanged result (0.0% in July 2019. Food retailing (0.1%), Other retailing (0.3%), Clothing, footwear and personal accessory retailing (0.3%), and Household goods retailing (0.1%). Cafes, restaurants and takeaway services (-0.1%), and Department stores (-0.1%) fell in trend terms in August 2019.

RBA Financial Stability Review – Click here for the full picture

AMP Capital is expecting another rate cut on Melbourne Cup day.

BOND MARKET

• 2 – year bond yields fall 1bps to 0.61%
• 3 – year bond yields fall 1bps to 0.61%
• 10 – year bond yields fall 2bps to 0.89%

ASIAN NEWS

• Capital Economics expects the Nikkei 225 to drop 12% by the end of the year on global turbulence.
• HK Authorities set to ban the Mask. Business confidence in Hong Kong sank to a seven-and-a-half year low in September

EUROPEAN AND US NEWS

• All eyes on US Non-Farm payrolls. Expected 145k jobs to have been added following previous month of 130k.
• October 15th is D-Day for the next round of US$250bn of new tariffs. Talks begin next week. Maybe a delay?
• EU will not hit back on tariffs immediately. Hoping for a negotiated settlement of the WTO issue. Nice thought.
• BP CEO Bod Dudley to retire in March 2020. Looney will take over the asylum.
• HP is cutting another 9000 jobs.
• Not sure the new Boris cunning plan is going down too well with the Irish and the EU.
• MGM Resorts is going to pay up to US$800m to settle the Las Vegas roof top mass shooting claim.
• US shopping mall vacancies hit an 8-year high.

And finally…have a great long weekend…money never sleeps.

A guy goes to the supermarket and notices an attractive woman waving at him. She says hello. He’s rather taken aback because he can’t place where he knows her from. So he says, “Do you know me?”

To which she replies, “I think you’re the father of one of my kids.”

Now his mind travels back to the only time he has ever been unfaithful to his wife and says, “My God, are you the stripper from my bachelor party that I made love to on the pool table with all my buddies watching while your partner whipped my butt with wet celery?”

She looks into his eyes and says calmly, “No, I’m your son’s teacher.”

 

Two Jewish guys are walking when one notices a sign on a Catholic church that says “Convert to Christianity, and we’ll give you $100.”

The one says to the other, “should we do it?” The other says “NO!! Are you crazy?” The first guy replies “Hey, a hundred dollars is a hundred dollars… I’m gonna do it.”

So he walks in to the church, and little while later, he walks back out.

The friend says “well, did you get the money?” He replies “Oh that’s all you people think about, isn’t it?”

 

A guy goes into confession and says to the priest, “Father, I’m 80 years old, widower, with 11 grandchildren. Last night I met two beautiful flight attendants. They took me home and I made love to both of them. Twice.” The priest says, “Well, my son, when was the last time you were in confession?” “Never Father, I’m Jewish.” “So then, why are you telling me?” “I’m telling everybody!”

Clarence

XXX