The ASX 200 rocketed ahead by 47 points (+0.67%) breaking through the 7000 barrier to close at 7042 on trade deal optimism. Volumes and bullishness boosted by SPI expiry from the open. Dow Futures up 38 points. Banks leading the charge as CBA leads the pack out of the wilderness, up 1%. WBC up 0.8% and ANZ up 0.7% playing some catch up. CSL bust through the $300 level to close up 1.1% and the usual industrial suspects were once again strong with WES up 0.7% and WOW up 1%. In financials, insurers found friends with QBE up 3.4% on a broker upgrade and SUN enjoying a day out up 1.4%. FXL rose 4.3% after a UBS upgrade. APT copped a downgrade from RBC and rose only 1.3%. Even TLS found reasons to be cheerful today after some lacklustre days up 1% and tech stocks pushed ahead led by out of favour WTC up 4.1%. In the miners, we had a number of production reports, S32 flatlined, BHP slipped on iron ore falls, down 0.1% and WPL in the oil and gas space was firm on production numbers, rising 0.6%. REITs continue to bubble away as bond yields remain under some pressure. In corporate news, LVT up 3.8% on strong revenue growth, S32 warned its SA energy coal business faced increasing costs. WPL is targeting 25.7m barrels of production and sales up 12% on previous quarter. CRN down 0.4% after resuming operations after fatality and CTX has opened its books to ACT as it looks to firm up the Canadian bid. In economic news, Home loan value rose 1.8% in November. The 10-year yield remains steady at around 1.18% and the AUD is becalmed. FX traders must be bored to death. Asian markets celebrated the ‘monster trade’ deal with a muted reaction and some caution, China down 0.31% and Japan down 0.21%.

 

Today’s Highlights

• ASX 200 up 47 to 7042. Closes on an all-time high.
• High 7042 Low 6995. SPI expiry boosts volumes.Not great though.
• Banks boost bourse.
• Miners flat line.
• Industrials and tech do well.
• CSL bursts through $300. Targets raised.
• 10-year bond yields 1.18%
• AUD fades to 69.06c
• Dow futures up 38 points.
• Aussie gold stready $2252
• Bitcoin back up to US$8624.
• Asian markets: China down 0.32%. Japan down 0.21%.

STOCKS                                               

• CSL +1.06% cracks $300.
• WPL +0.56% quarterly.
• TWE +1.33% change in substantial holding
• PNV +5.26% heating up again.
• AEF +5.42% ain’t no stopping this one.
• Z1P +4.48% quarterly update brings buyers.
• WTC +4.07% catch up time
• ALU +4.26% tech is back baby.
• SUL -5.97% broker downgrade.
• JMS -3.17% profit-taking.
• PLS -2.78% lithium back under pressure.
• EHL -1.79% ceasing to be a substantial shareholder
• GTK -8.93% broker downgrades
• SYR -6.82% the bears are back in town.
• RAP +12.00% tech rally helps
• CAT +11.48% signs US league.
• EOF +10.36% quarterly.
• QBE +3.37% broker upgrade
• LVT +3.77% ARR update.
• Speculative stock of the day: Medadviser (MDR) +22.97% announced today new US digital health programs. It’s second agreement with a top 10 pharma. Total revenue derived should be around $825k.
• Biggest Risers: MVP, OPT, CGF, MAH, AEF, PNV and Z1P.
• Biggest Falls: SUL, CDA, JMS, LOV, PWH, PLS and DHG

TODAY

• Catapult (CAT) +11.48% has announced the signing of new strategic partnerships in the US. The company has signed a league-wide Catapult Vector (one of their products) deal with Major League Rugby, as well as new elite subscription customers across MLB, NCAA, and MLS teams.
• Westpac (WBC) +0.85% There have been reports WBC may seek an additional capital raise depending on the size of AUSTRAC fine which could be as high as $2bn. The Australian speculated WBC could pursue an additional equity raise, in addition, its most recent $3.5bn raise.
• LiveTiles (LVT) +3.77% Reports annualised recurring revenue (ARR) of $52.7m at 31-Dec vs quarter-ago $42.9m. The company said it expects another year of strong customer and revenue growth in FY20.
• Michael Hill International (MHJ) -0.70% Q2 trading update; same stores sales +4.0% year on year. Gross margin remains below historical levels but in line with recent quarters.
• Perseus Mining (PRU) -2.31% Has reiterated guidance for FY20 after a “strong” December quarter which saw its production at the top end of its forecast. Gold production of 134,980 ounces was achieved for the December Half Year vs guidance of 120-140,000 ounces. AISC of US$942 per ounce was also within the guided cost range of US$850-1,000.
• South32 (S32) – reports Q2 alumina production of 1,327k vs year-ago 1,383kt. The company maintains its FY production guidance outside of South Africa Energy Coal which is now at the lower end of the range.
• Woodside Petroleum (WPL) +0.56% Is targeting increased production in 2020 following the successful execution of its near-term growth projects. Q4 production came in at 25.7MMboe vs consensus of 26.4MMboe.

ECONOMIC NEWS

• New home loans rose 1.8% in November marking a 5.9% lift on the year. Owner-occupier loans lifted 1.6% in November. Investor loan value rose 2.2% ahead of expectations of 1%. Owner-occupier loans rose in value and by number loans for purchase of existing dwellings was little changed at 19,866 in November from 19,840 in October.

BOND MARKET

ASIAN NEWS

• China pledged to buy a total of US$32bn in additional agricultural products over the next two years, while it said it will also “strive” for another US$10bn of purchases. That includes oilseeds, meat, cereals, ethanol and cotton. It also promised US$52.4bn in further purchases of American energy such as LNG, crude oil and coal over 2020 and 2021.
• China home-price growth accelerated for the first time in seven months. New-home prices, excluding state-subsidized housing, rose 0.35% last month from November in 70 major cities. Fifty cities reported a gain in values, up from 44 in November.

• The new outbreak of a SARS like virus has spread from China to Japan with a man in his 30s developing the fever in Tokyo after travelling back from China.
• Toyota has invested US400m in a flying taxi company. Yes really. Not April 1st yet.

EUROPEAN AND US NEWS

• Following the trade truce, here is the usual exports numbers:

• Soyabean prices get hit despite trade deal.

• Tesla is in talks to buy supplies of the battery metal cobalt from Glencore for its Shanghai factory.
• Total terrorism deaths down 15.2% in 2018. Down 52% since 2014.
• Iran is threatening EU troops. Rouhani says EU troops could be ‘in danger tomorrow’.
• NASA and UK Met office blame humans for the hottest decade on record.
• Putin sets blueprint for Trump to follow. Maybe. Longest Russian leader since Stalin,
• Italy gets a record demand of EUR 44bn of bids for a new 30-year bond.

And finally…

What can I say a record close…no joke today.

Clarence

XXX