ASX 200 closed down 13 points to 7282 on a big day. Dow futures down 30. Some big announcements today despite index now being able to make up its mind. Super Monday for corporate action with bids for HSN up 22.6% and ALU up 39.0%. Plus, AUSTRAC came out firing after the weekend with some please explains for NAB down 3.2% and SGR down 2.0% and SKC down 6.5%. On the counter AML issues, EML rose 4.2% after a business update and more importantly a CBI update.  The AML issue was enough to set the cat amongst the pigeons with the Big Bank Basket down 184.02%. Other financials eased too with MQG off 0.3%, MFG fell 0.6% after its FUM fell. Elsewhere, miners showed some strength with BHP up 0.2% and RIO 0.6% to the good although FMG missed the memo falling 1.4%, gold miners were modestly higher with NCM up 0.5%. Energy stocks also modestly weaker as STO lost 0.3% and WPL down 0.2%. CSL rose 0.4% in industrials with GMG up 1.8% and TCL up 0.6%. In the tech sector, the bids for ALU and HSN sent buyers scurrying to APX up 6.1% and NXL rising 6.2%. Maybe APX could be a target perhaps? XRO up 0.2% and APT rising 2.0% ensured a positive 2.0% day for the AllTech Index. In other corporate news, SLC in a trading halt as it prepares a capital raising, and CIM up 1.3% after conforms IPO of Ventia Group remains an option. On the economic front, ANZ job ads rose by 7.9% in May, reflecting 12 straight months of gains and pointing to a continually tightening labour market. 10-year yields dropped to 1.62% following US jobs data, and Asian Market were mixed. Japan up 0.3% and China down 0.6%.

Today’s Highlights

  • ASX 200 drops 13 to 7282 on news filled day.
  • High 7309 Low 7269. Narrow range.
  • Dow futures down 30.
  • Big Bank Basket falls to $184.02
  • All Tech Index up 2%.
  • Australian Gold slips to $2438.
  • 10-year yield falls to 1.62%
  • AUD rises to 77.34c.
  • Bitcoin falls to US$36261
  • Asian Market were mixed. Japan up 0.3% and China down 0.6%

STOCKS

  • KLL +9.09% AFR write up on potash stocks.
  • ADT +10.20% new concession area.
  • TRJ +16.47% new IPO listed today. Analytical science instruments.
  • EP1 +16.67% substantial shareholder notice.
  • MNF +7.68% selling part of business to VN8.
  • EML +4.19% trading and Bank of Ireland update.
  • APX +6.13% NXL +6.18% tech stocks bounce.
  • ASB +4.02% design contract for US Navy.
  • KED -7.36% slide continues.
  • CTD -5.14% FLT -4.82% WEB -4.91% travel issues with Victorian lockdown.
  • 88E -9.09% Acquisition of interest in Alaskan project.
  • CXL -6.25% change in substantial holding.
  • Speculative Stock of the Day: Globe Metals (GBE) +271.79% good volume as company announces Kanyika Niobium project formal approval received.
  • Biggest Winners: ALU, HAN, NTO, NXL, APX, ASM, RAC and VRT.
  • Biggest Losers: ADO, KED, PDN, SKC, INR, CTD, IMU and WEB.

TODAY

  • Skycity (SKC) -6.47% AUSTRAC identifies potential serious non-compliance by Skycity Adelaide. It is understood that Austrac has not made a decision regarding an appropriate regulatory response.
  • CIMIC Group (CIM) +1.34% CIMIC and Apollo said to be looking at an IPO for services business Ventia. Newswires report an IPO could happen by the end of the year with Apollo and CIMIC hoping to secure a $3-3.5bn valuation.
  • Magellan Financial Group (MFG) -0.56% Funds under management at the end of May $109.93bn vs month-ago $110.43bn.
  • Japara Healthcare (JHC) +5.38% Receives upgraded proposal from Little Company of Mary Health Care of $1.20 vs prior $1.04.
  • NAB (NAB) -3.16% AUSTRAC this morning said it has identified serious concerns with the bank’s compliance with anti-money laundering and counter-terrorism financing laws.
  • Hansen Technologies (HSN)+22.59% Has received an unsolicited non-binding proposal from BGH Capital of $6.50 a share, a 25% premium to Friday’s closing price. Click here for Tom’s recent BUY HOLD SELL.
  • Altium (ALU) +39.03% Received takeover offer from US-based software firm Autodesk of $38.5. The ALU board has rejected the offer saying it undervalues the business.

ECONOMIC NEWS

  • ANZ job ads rose by 7.9% in May, reflecting 12 straight months of gains and pointing to a continually tightening labour market. “In May, we upgraded our labour market forecasts, and now expect an unemployment rate of 4.8% by the end of this year and 4.4% by end-2022,” said ANZ senior economist Catherine Birch.
  • Australia’s AAA credit rating outlook has been raised to neutral from negative by S&P Global Ratings. S&P said it could lower the rating if the deficit looked unlikely to narrow over the next two to three years.

BOND MARKETS

CV19 NEWS

  • Vaccine Tracker: 2.12bn doses in 176 countries. 38.9 doses a day. In US 302m does at now under 1m a day. In Australia, 88700 doses administered June 6th. 115,000 average. 10 months to 75% coverage.
  • Singapore has called off the F1 GP.
  • UK says it is too early to say whether the loosening of the rules on June 21st will happen.
  • At least 70% of China’s “target population” is expected to be vaccinated against Covid-19 by year-end.

ASIAN NEWS

  • Chinese Exports grew almost 28% in dollar terms in May from a year earlier. Imports soared 51.1%, the fastest pace since March 2010, leaving a trade surplus of US$45.5bn for the month.
  • Imports of iron ore and concentrate were up 85.5% by value in the first five months of the year, but only 6% by volume.

US AND EUROPEAN HEADLINES

  • Yellen says inflation is good for US.
  • Minimum tax deal reached of 15% at G7. G7 only 11% of global trade. Tech giants welcome deal. Well they would.
  • One chip fryer has warned shortages could last until mid-2022.
  • Norway declares CV19 over.
  • Private Equity group buys Medline for US$34bn.

And finally….

A turtle is crossing the road when he’s mugged by two snails. When the police show up, they ask him what happened. The shaken turtle replies, “I don’t know. It all happened so fast.”

A priest, a minister, and a rabbi want to see who’s best at his job. So they each go into the woods, find a bear, and attempt to convert it. Later they get together. The priest begins: “When I found the bear, I read to him from the Catechism and sprinkled him with holy water. Next week is his First Communion.”

“I found a bear by the stream,” says the minister, “and preached God’s holy word. The bear was so mesmerized that he let me baptize him.”

They both look down at the rabbi, who is lying on a gurney in a body cast. “Looking back,” he says, “maybe I shouldn’t have started with the circumcision.”

“Why do they lock petrol station bathrooms? Are they afraid someone will clean them?”

Clarence

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