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The ASX 200 fell only 2 points to 5926 in a tale of two cities. The banks and domestic focussed stocks suffered from Stage Four concerns as the miners benefitted from a lower AUD. The Big Bank Basket fell to $120.58 with CBA down 1.8% and WBC down 3.5%. Other financials slipped slightly led by MQG down 1.2%. Elsewhere industrials had a sloppy day but could have been worse, COL rose 1.6% and WES down 1.4%. SCG also in trouble on new lockdown restrictions, falling 5.6%. Meanwhile the miners did well, BHP rose 1.6% and RIO up 1.0% together with FMG up 2.6% as the AUD fell on Vic woes. Gold miners were bid with NCM up 1.3% and NST up 2.6% Consumer tech stocks in APT down 3.0% and FXL fell 9.2% were on the nose but elsewhere in tech, we saw gains in XRO up 2.0%, WTC up 3.2% and NXT up 2.0%. The All Tech Index flatlined. In corporate news, CAT rallied 16.16% after winning a US football contract. IFN unchanged despite suspending dividends. SPT is in a trading halt as it looks to raise fresh funds. TAH dropped 1.7%, after it expects $1bn write down to its Wagering & Media and Gaming Services businesses. MND crashed 10.3% after RIO filed a writ of summons against its subsidiary. SEK fell 2.3% as it said will not pay a FY dividend. VEA is rallied 5.0% on its training update, fuel sales improving across the country. In economic news, CBA Manufacturing PMI rose to 54 points in July, up from a preliminary estimate of 53.4 and June’s result of 51.2. The highest reading since December 2018. 10-year bond yields fell to 0.81% and the AUD weakens to 71.44c. Asian markets firm, Japan up 2.1% and China up 1.1%

Today’s Highlights

• ASX 200 down 2 to 5926. Rallies hard off early lows.
• High 5947 Low 5861. Big range/lower volume.
• Big Bank Basket falls hard to $120.58 on CV19 closures.
• All Tech Index flat lines as APT weighs.
• 64 trading days until the US election.
• Dow Futures down 50.
• Gold steady around $2766.
• 10-year bond yields fall back to 0.81%.
• AUD falls to 71.44c
• Bitcoin rises to $11176.
• Asian market stronger with Japan up 2.1% and China up 1.1%

STOCKS

• LYC +4.48% clarification of share issuance.
• CSL +2.61% bounces off support and Trumps call on vaccine potential.
• KGN +9.54% CV19 possible winner in Victoria.
• CAT +16.16% US football deal.
• VEA +4.97% trading update.
• MND -10.33% RIO lawsuit weighs.
• TYR -6.71% business update.
• AEF -7.10% valuation issues together with market woes.
• FLT -6.61% CTD -6.30% travel stocks suffer on Vic lockdowns.
• ASM -23.23% recently demerged, selling pressure.
• WZR -10.20% VIC woes.
• FXL -9.16% BNPL under pressure.
• ALG -9.09% CV19 impact on Dreamworld.
• TNT +5.26% WHK +19.23% cyber security strength.
• RAC -7.98% fast money moves elsewhere.
• SVL +4.65% silver still in focus.
• PCK +4.17% investor webinar.
• MFG -0.33% retail funds to merge.
• VEA +4.97% Victorian petrol sales down 25%.
• AQZ +6.73% adds 14 jets for $111m.
• SEK -2.26% no dividend and extends its debt maturity.
• Speculative Stock of the Day: Incentiapay (INP) +65.38% after announcing a strategic partnership with Paywith (not Paypal). Honourable mention to BUD +29.63% after its quarterly report last week.
• Biggest Rises: KGN, NWL, VEA, ALD, WAF, COH and FCL
• Biggest Falls: MND, CCP, AX1, NWH, AEF, WEB, TYR, LOV and FLT.

TODAY

• Magellan Asset Management (MFG) +0.33% Proposes restructure to simplify its global equities retail product offering. Plans to consolidate the unlisted Magellan Global Fund, the listed Magellan Global Equities Fund and the listed Magellan Global Trust into a single fund with two-unit classes.
• Infigen Energy (IFN) – Suspends distributions indefinitely. Q4 net revenue $47.1m vs year-ago $63.5m. Expects FY21 net revenue and EBITDA in to be materially lower than FY20.
• Catapult Group International (CAT) +16.16% Awarded video contract for US college football. The contract is with the Football Bowl Subdivision (FBS) teams to provide video exchange services to all 130 Division 1 American football teams.
• Rio Tinto (RIO) +0.98% Files writ of summons against Monadelphous Group (MND) subsidiary in WA Supreme Court. The claims relate to a fire incident which occurred on January 10, 2019, at Rio Tinto’s iron ore processing facility at Cape Lambert. The claim is for $493m in loss and damage.
• Tabcorp (TAH) –1.69% Expects full-year NPAT between $267-273m, EBITDA between $990m-1bn. Expects non-cash impairment charge to the Wagering & Media and Gaming Services businesses in the range of $1bn-$1.1bn in FY results.
• SEEK (SEK) -2.26% Will not pay a FY final dividend, retained funds will be used to preserve capital in an uncertain environment and to fund the company’s long-term growth strategy. Once economic conditions improve, SEK intends to resume the payment of dividends. Operating within its debt covenants and observes strong liquidity position.
• iSelect (ISU) +5.26% Ceases takeover discussions with Innovation Holdings. Made an underlying profit in 4Q20. July EBITDA of $1.5m, was up $0.6m vs year ago. Has sold its investment in iMoney, terms undisclosed.
• Viva Energy Group (VEA) +4.97% Notes around one-quarter of petrol and diesel sales are generated in Victoria. Sales for July are ~25% lower than the same period last year driven by declines in the retail network as a result of restrictions in place across the state. Sales across the rest of the country are recovering and are ~11% lower for July than compared to the same period last year.

ECONOMIC NEWS

• Property values in major cities fell 0.8% last month, CoreLogic data released Monday showed. Melbourne was the worst hit of the major cities, with home prices falling 1.2% in July.
• The Commonwealth Bank Manufacturing PMI rose to 54 points in July, up from a preliminary estimate of 53.4 and June’s result of 51.2. The highest reading since December 2018.
• The AIG Performance of Manufacturing Index lifted 2 points to 53.5 in July. A reading over 50 indicates expansion.

COVID-19 NEWS

• New Zealand will not be proceeding with a quarantine-free travel zone with Australia any time soon.
• Hong Kong denied plans to harvest citizen’s DNA as part of a China-backed coronavirus-testing blitz

BONDS

ASIAN NEWS

• Industrial activity in China has shown further signs of recovery, with the latest Caixin Manufacturing Purchasing Managers’ Index lifting to 52.8.
• Vietnamese has only weeks to prevent a major outbreak according to PM.

EUROPEAN NEWS

• Siemens Healthineers is set to buy Varian Medical for US$16.4bn.
• Microsoft is pressing on with TikTok acquisition after Trump threatens to cut the companies out of the US.
• SpaceX splashes down.
• HSBC splashes down after profit plunge on bad loan provisions of US$13bn.
• 7-Eleven is buying Marathon Speedway for US$21bn.
• US set to continue its attack on Chinese tech companies.

And finally

Three years ago my doctor told me I was going deaf. I haven’t heard from him since.

Another casualty of the pandemic. The local fish processing factory is about to close.
The whiting has been on the wall for some time.