ASX 200 kicks another 59 points higher to 6794. Dow futures pointing the way, up 100 points. The ASX kicked as Larry Kudlow said a trade deal was close. Banks and miners in the spotlight, as BHP rose 1.3% FMG rose 3.8% on higher iron ore prices and CBA kicked 1.1%. NAB the odd man out in the banks down 0.6% after losing its dividend yesterday. CSL continues to move ever higher up 1.9%, as does MQG up 0.8%. AGMs continue to be the focus and broker upgrades as a consequence. Tech stocks and growth is back in fashion APT doing well again up 4.2%, with LNK up 4.5% after guidance and XRO slowing the advance but only down 0.1 %. Consumer stocks ralled on rate cut hopes, COL up 1.4%, WES up 2.1% and WOW up 0.6%. In corporate news, BAL got FIRB approval to be ‘Pacmanned’ by a Chinese corporate. GNC also rallied 11.5% after no issues with the ANZ Grain terminals. ERA tapped shareholders for money for remediation and falls 16.3%. Nothing on the economic front locally, AUD under pressure as 10-year bonds fell to 1.15%. Asian markets mixed with China down 0.11% and Japan up 0.68%

 

Todays Highlights

• ASX 200 up 59 to 6794. Average volume.
• High 6799 Low 6737.
• Kudlow comments kick risk-on trade.
• Consumer stocks and miners in demand.
• Tech stocks shine and AGMs in focus.
• 10-year bond yields weaker at 1.15%.
• AUD lower at 67.91c.
• Aussie gold flat despite dollar falls at $2157.
• Bitcoin falls to US$8542.
• US futures up 100 points.
• Asian markets mixed on continued HK unrest with China down 0.11% and Japan up 0.68%.

STOCKS                                               

• ANZ +0.36% broker downgrade
• PNV +0.91% no guidance as its secret at AGM
• NEA +1.41% broker upgrades.
• APE -5.50% broker downgrades after the horsepower has bolted.
• LNK +4.49% affirms guidance.
• FNP +4.82% optimistic outlook.
• PAN +2.90GO reviewing t/o offer.
• MLX -12.20% Nifty production issues. Again.
• EHL +2.93% broker upgrades.
• GEM -6.57% broker downgrade.
• CVN -1.39% AGM presentation.
• Speculative stock of the day: Oncosil (OSL) +20.00% Bank of America issues substantial shareholder notice.
• Biggest Risers: GNC, IFM, CIA, PAR, SWM and LNK
• Biggest Falls: GEM, APE, PET, PPK, FNP and OPT

TODAY

• Bellamy’s (BAL) +1.93% suitor China Mengnui Dairy has been given the green light to its takeover by the Treasurer and the FIRB with certain conditions including a majority of directors being Australian residents and continued investment in the infant formula and dairy business in Australia.
• FlexiGroup (FXL) -0.93% repeats FY20 guidance at AGM. Management is expecting volumes to grow by at least 15% thanks to product launches, audience extension and new partnerships. A double-digit return on equity is also expected as the company balances margin with growth.
• GrainCorp (GNC) +11.51% The ACCC will not oppose the proposed acquisition of GrainCorp bulk liquid terminals by ANZ terminals.

ECONOMIC NEWS

• Nothing significant today

BOND MARKET

• 2 – year bond yields down 6bps to 0.77%
• 3 – year bond yields down 8bps to 0.80%
• 10 – year bond yields down 2bps to 1.15%

ASIAN NEWS

• Things are not getting any better in HK with another day of protests and death. Weekend fun and games beckon as President Xi Jinping has backed “severe” punishment for criminals in Hong Kong as violence escalates. There could well be some money leaving the former colony and heading towards this colony.
• China’s central bank added liquidity to the banking system to help lenders through the tax season, a move that analysts saw as a sign that larger-scale stimulus is unlikely in the near term. The People’s Bank of China offered 200 billion yuan ($29 billion) of one-year loans to banks.
• Malaysian GDP rose 4.4% in the three months through September from a year ago, according to figures from the central bank.
• Alibaba launches its HK listing. The company caps its shares for retail investors at HK$188. Stock code will be 9988. Very lucky. Good vote of confidence in HK. It aims to raise at least US$12bn in what would be one of the world’s largest sales of stock this year. The company will price the rest of its international offering by Nov. 20. “The listing in Hong Kong will allow more of the company’s users and stakeholders in the Alibaba digital economy across Asia to invest and participate in Alibaba’s growth,” the company said.

EUROPEAN AND US NEWS

• London to Sydney non-stop is three minutes quicker than flying non-stop to NY.
• The descent into farce continues, Brussels is suing the UK over Boris Johnson’s refusal to appoint a member of the next European Commission. Bet he is quaking in his boots. UK election continues to be too close, or is it too dumb to call.
• Amazon has accused the US administration of bias in awarding a US$10bn contract to Microsoft.
• Iran has raised the price of petrol by 50% plus. Not much different here really. 130c for a litre one day, 175c the next.
• Making an Apple a day fashionable again as Apple launches an app to monitor uses health.

And finally…have a great weekend

 

Clarence

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