The ASX 200 slipped 32 points to 6002 (-0.53%). A slow drift down more than anything as Dow Futures point to a 75-point loss. Banks were the sloppy sector seeing some selling with CBA down 0.8% and ANZ down 1.2%. The Big Bank Basket fell to $125.73. Other financials weakened in thin trade, MQG fell 0.6% and MFG down %.  Big miners were back in demand, BHP up 1.2% and RIO up 0.9% though FMG eased 0.8%. Gold miners were slightly harder with NCM up 0.7% and NST up 1.4%. Energy stocks though finding no friends as WPL fell 2.6% and STO down 3.5%. Industrials soft with TCL down 2.1% and CSL falling 0.2% dragging healthcare down with it. Nothing very exciting in the Tech sector though APT rose 3.1%. The All Tech Index rose 0.8 %. In corporate news, FXL is up 2.1%, Q4 total transactions up 447% vs year ago. HUB is down 0.2%, FUM $17.22bn vs quarter-ago $15.1bn. S32 is down 2.2% on its quarterly production update. MWY falling 1.3% on its Japanese pricing update. SYD is off 1.3%, June traffic down 94.9% vs year ago. CAT up 11.4%, expects FY20 EBITDA in the range of $11.5-12.5m. Nothing on the economic front as we await the government budget update on Thursday via Zoom. 10-year yields at 0.88% In Asia, Japan flat despite nasty export and import numbers. Chinese markets resume rally with CSI 300 up 2.5%.

Today’s Highlights

• ASX 200 falls 32 to 6002. Low volume low volatility.
• High 6039 Low 5992. Narrow range.
• Big Bank Basket $125.73
• All Tech Index up 0.88%
• 74 trading days until the US election.
• Dow Futures down 75.
• 10-year bond yield steady at 0.88%
• AUD steady at 69.88c
• Aussie gold firms to $2588.
• Bitcoin rallies slightly US$9180
• In Asia, Nikkei goes nowhere despite bad economic numbers, China rallies hard up 2.5%.

STOCKS

• HUB-0.16% record net inflows.
• BSL +3.02% upgraded on strong result.
• LSF +0.82% bullish on value and cyclical stocks. Up 33.8% in June quarter.
• SYD -1.28% passenger numbers.
• DJW -1.51% halves its dividend.
• PLS +9.68% lithium is back (for a day)
• APT +3.15% BNPL beat goes on.
• PBH -4.19% sellers back as CV19 spreads in US.
• AKP -5.21% proposed issue of securities.
• PPH -2.67% director resignation.
• WSP +15.18% bullish business update.
• CAT +11.42% results preview.
• ECX +7.31% sells Right2Drive.
• Speculative Stock of the Day: Tesserent (TNT) +28.05% good volume. $40m run rate achieved, cash flow positivity achieved in June with additional $10m debt facility.
• Biggest Rises: PLS, RBL, PAT, RSG, JMS, WGX and IDX.
• Biggest Falls: VGI, VEA, TPG, BEN, SUL and DEG..

TODAY

• Cooper Energy (COE) –unchanged- COE and Mitsui announce $55m investment for upgrade and connection of Minerva Gas Plant. Following completion and performance testing, the first gas is expected within the September quarter 2021.
• HUB24 (HUB) –0.16% Q4 funds under administration (FUA) $17.22bn vs quarter-ago $15.1bn. Net Inflows $1.09bn vs quarter-ago $1.36bn.
• South32 (S32) -2.25% Q4 alumina production 1,358kt vs year-ago 1,307kt. Aluminium production 245kt vs year-ago 245kt. Energy coal production 5,657kt vs year-ago 7,037kt. Expects to book pre-tax, non-cash impairment of US$90m in FY20 from Matalloys and TEMCO smelters.
• Eclipx Group (ECX) +7.31% Signs agreement to sell its Right2Drive business to Growth Factor Group for $26.5m. The fixed consideration of $19.2m includes $15m payable at transaction completion and $4.2m to be paid 18 months after completion.
• Catapult Group International (CAT) +11.42% Reports FY20 free cash flow (FCF) of $9.0m. Expects FY20 EBITDA in the range of $11.5-12.5m. Cash balance at the end of June was $27.5m. Expects revenue in FY20 between $100-101m. Notes 75% of its revenue is subscriptions-based, supported by long term customer relationships and contracts.
• Sydney Airport (SYD) -1.28% June traffic down 94.9% vs year ago. Domestic down 93.3% to 140K passengers. International down 97.6% to 32K passengers over the same period.
• Midway (MWY) -1.26% Secures export price to Japanese customers of $167.25 per bone-dry tonne for CY20, down from $182.25 pre-COVID. Does not expect to see any change in the underlying EBITDA forecast for FY20 of between $10m-$14m.

ECONOMIC NEWS

• The number of people seeking early release superannuation in just one week has broken through the half a million mark. The latest data from the Australian Prudential Regulation Authority has revealed that 581,000 applications were received for early release of which 472,000 were repeat applications. It said this brought the total number of initial applications to 2.8m and repeat applications to 0.8m since the inception of the scheme. “Over the week to 12 July, superannuation funds made payments to 734,000 members, bringing the total number of payments by funds to their members to approximately 3.3m since inception,” it said. “The total value of payments during the week was $6.2bn, with $25.3bn paid since inception. The average payment made over the period since inception is $7,718 overall and $8,755 when considering repeat applications only.”

COVID-19 NEWS

---

BONDS

ASIAN NEWS

• Japan’s exports fell 26.2% year-on-year in June. The decline in June was better than the 28.3% decline in May, but it fell short of consensus expectations for a 24.7% drop.
• Japan’s imports fell at a 14.4% pace in June, an improvement from the 26.2% decline recorded in in May. Exports to US fell 47% in June. 
• Global investor BlackRock is taking profits in China after the recent run and investing in more nascent emerging economies.
• Chinese authorities have been attacking its biggest stock in Moutai as they have berated Moutai for being the currency of corruption. Apparently Moutai is used for bribes and the stock fell heavily after a record breaking 50% rise this year.

EUROPEAN NEWS

• The Frugal Four are still holding out at the EU summit. Breakthrough though could happen this afternoon. So far three days of deadlock.
• European markets expected to open slightly weaker
• Trump admits he may not honour the US election result.

And finally…

Clarence

XXXX