ASX 200 drops another 110 points to 6325 after US falls as rate drops fail to fire markets. Dow futures up 326 points. GDP comes in better than expected although in rear view mirror, it takes the case of another cut off the table. Plenty of ex-dividends around too. Once again broad-based losses, with the banks under extreme duress after passing on the full cut. CBA dropped 2.5% and WBC down 3.1% still pregnant with AUSTRAC fine. Other financials dropped with MQG down 2.2% and QBE falling 2.8%. Miners tried hard to buck the trend with FMG up 0.8% and RIO up 1.3% but the real stars of the show were gold miners on the bullion bounce. NST up 6.8% and NCM up 3.6%. Elsewhere, it was spot the gains again today, but some defensives held firm, TCL up 1.4% and COL up 1.3%. Losers again in the tech sector with CPU dropping like a rock after querying the ASX on its blockchain move and finished down 8.3%. All tech index down 3.7%. XRO down 3.5% and APT falling 4.2%. Energy stocks failed to fire too, WPL down 3.3% and STO off 1.9%. In corporate news, not much around of note. On the economic front GDP came in better than expected and Frydenberg called our economy resilient. May give the RBA second thoughts on another cut. Not that any are working any way. 10-year yields dropping again to 0.71% and the AUD rallying back towards 66c on the better GDP number. Asian markets outperformed with Japan up 0.46% and China up 0.03%
- ASX 200 drops 110 points to 6325. Closes on lows.
- High 6418 Low 6310. Volume easing.
- GDP better than expected.AUD rallies.
- Banks smashed on margin contraction.
- Big Bank Basket drops below recent support to $145.79. Recent hiogh around $172. Down around 16%.
- Energy down, healthcare sick.
- Iron ore miners hold firmish.
- Tech sold off led by CPU.
- Miners solid. Energy mixed. Industrials mixed.
- 10-year bond yields ease to 0.71%.
- AUD rises to 65.99c.
- Dow futures up 325.
- Aussie gold bounces to $2489
- Bitcoin steady at US$8795
- Asian markets mixed with Japan down 1% and China up 1.3%.
- RMS +14.29% WGX +7.73% and SAR +5.93% lead the gold gains.
- NXT +2.61% broker upgrades
- AVH +4.20% first patient enrolled and director’s interest.
- ELD +1.80% rain again.
- WEB -8.76% FLT -5.72% CTD -9.25% CV19 effects.
- ECX -5.52% new CFO.
- IEL -5.95% student fall out.
- CPU -8.32% questions blockchain.
- ALG -13.48% Dreamworld turns into nightmare.
- AEI +11.30% CV19 winner.
- ZNO +1.35% rise slows.
- WTC -5.25% exit stage left for substantial shareholder.
- RIO +1.35% director’s interest.
- GMG -2.07% broker downgrade.
- Speculative stock of the day: Volumes dry up. No stand outs.
- Biggest Rises: RMS, WGX, NST, RRL, SAR, BGA and AVH
- Biggest Falls: PSI, OPT, CTD, WEB, AX1, MAH, CPU and REG
- NextDC (NXT) +2.61% To bring forward the fourth stage of construction of its Victorian facility, M2 to provide up to 12MW of incremental capacity. Upgrades capex guidance for FY20 to $320m to $340m (previously $280 million to $300 million). Reports contracted commitments at Victorian data centre have increased to 21MW from 15MW.
- Caltex (CTX) -0.58% announced it had rejected a rival $3.9bn bid for part of the business from EG Group, but would allow the company due diligence. ACT is offering $35.25c. Plenty of hurdles remain including FIRB.
- TPG Capital is selling a 5% stake in Inghams (ING) -1.11% at 360c a share. Good timing. It floated the group back in late 2016 and last sold stock at 340c in December. It was a 14.86% owner before this latest sell down.
- Phoslock Environmental Technologies (PET) -6.56% CFO and Managing Director Robert Schuitema to retire May 13. Schuitema will be replaced by CEO Lachlan McKinnon.
- Josh Frydenberg has said the economy remains ‘resilient’ after GDP numbers showed growth at 2.2% It may be resilient, but it is hardly in great shape. Josh is set for a conference call tonight with the IMF Leaders to discuss the impact of CV19. He said the government could reveal its cunning targeted stimulus plan as early as next week.
- CBA services purchasing managers index fell from 50.6 to 49.0 in February.
- The Australian economy grew 0.5% in seasonally adjusted chain volume terms in the December quarter 2019 and 2.2% through the year. Long way above estimates of 0.4%. Domestic demand remained subdued with 0.1% growth in the December quarter. AUD rallying slightly on the news.
- Investment in new and used dwellings fell 4.1% in the quarter and 12.2% through the year, reflecting continued weakness in dwelling approvals. Both houses (-4.4%) and other residential dwellings (-3.3%) contributed to the decline this quarter.
- HK PMI dives to 33.1, HKMA cuts by 50bps.
- South Korea announced a stimulus package of 11.7 trillion won ($US9.8bn). Of the 11.7 trillion won proposed, 3.2 trillion won will make up for the revenue deficit while 8.5 trillion won will be extra fiscal injection.
- Question marks over Japanese Olympics continue.
EUROPEAN AND US NEWS
- Super Tuesday could well claim Mike Bloomberg, who only won in American Samoa.. Biden his time is jokin’ Joe and looking better.
- Global fatality rate jumps to 3.4%.
- This has never happened before, 150-year low.
- Tesla short sellers are back and having fun as the US market falls.
- The trading app called Robinhood has failed due to ‘unprecedented’ trading activity. 10m customers were unable to get on the platform during all the volatility of the least two days.
- French insurer Covéa is set to buy PartnerRe for US$9bn.
- Amazon is doing a roaring trade in masks and hand sanitiser. Some have raised prices by 2000%.
- Will we see some serious fall out from US shale producers if oil does not bounce? Could well be a casualty of the global slowdown.
I went to a tobacconist to discover that it has been replaced by a clothes shop. Clothes, but no cigar.
I was at a magic show, when after one particularly amazing trick, someone screamed out, “wow, how did you do that.” I would tell you”, answered the magician predictably, “but then I’d have to kill you.” After a moments pause the same voice screamed out “can you tell my mother in law?”
Old Mrs. Watkins awoke one spring morning to find that the river had flooded the entire first floor of her house. Looking out of her window, she saw that the water was still rising.
Two men passing by on a rowboat shouted up an invitation to row to safety with them. “No, thank you,” Mrs. Watkins replied. “The Lord will provide.”
The men shrugged and rowed on. By evening, the water level forced Mrs. Watkins to climb on top of the roof for safety. She was spotted by a man in a motorboat, who offered to pick her up. “Don’t trouble yourself,” she told him. “The Lord will provide.”
Pretty soon, Mrs. Watkins had to seek refuge atop the chimney. When a Red Cross cutter came by on patrol, she waved it on, shouting, “The Lord will provide.”
So the boat left, the water rose and the old woman drowned. Dripping wet and thoroughly annoyed, she came through the pearly gates and demanded to speak to God.
“What happened?” she cried. “For cryin’ out loud, lady,” God said, “I sent three boats!”