ASX 200 bounces back hard up 107 -points to 7342 (1.5%). Dow futures up 68 points. All is forgiven today with a strong rebound although not quite making up for Monday’s loss. The financial sector rose strongly with the Big Bank Basket up to $182.25. Insurers also had a strong day as 10-year bond yields also rose strongly. QBE up 3.2%, IAG up 2.8% and MQG up 1.8%. Other financials also strong as MFG rose 2.2% with ASX up 3.4%. Big miners shrugged off iron ore losses as BHP rose 2.3%, FMG up 2.6% and IGO up 6.2%. Gold miners flat, energy stocks in the buyer’s site as STO rose 3.2% and WPL up 2.5%. Industrials were firm across the board although tech stocks underperformed slightly with the All –Tech Index up 0.6%. APT rose 1.6%, XRO down 1.4%. REITs firm led by GMG up 1.9% as Amazon Prime Day kicks off. Telcos better with TLS up 2.8% and TPG up 0.8%. Healthcare better but CSL soft down %. In corporate news, TNT is up 26.8% as it upgrades annualised run rate expectations from $150m to $180m. SOL up 0.8%, agrees to merge with MLT up 16%creating a $10bn investment group. MND firming 2.1%, secures $215m in maintenance contracts. On the corporate front, weekly consumer confidence up 1.3% as solid labour market data boosted sentiment despite the emergence of a new COVID-19 cluster in Sydney. 10-year yields rose to 1.58% with the AUD around 75.15c. Asian markets rubber banded with Tokyo up 3% and China up only 0.5%.

Today’s Highlights

  • ASX 200 bounces back 107 points to 7342.
  • High 7366 Low 7258.
  • Dow futures up 68
  • Sydney masks up.
  • Big Bank Basket rebounds to $182.25.
  • All Tech Index rises by 0.6%
  • Australian Gold rises to $2373
  • 10-year yield rises to 1.58%
  • AUD up to 75.17c
  • Bitcoin steady at US$32825
  • Asian markets’rubber banded’ with Tokyo up 3% and China up only 0.5%.

STOCKS

  • VOC -unchanged- green light for 550c takeover.
  • NXL -0.76% touches new low. Asked to produce option documents.
  • BOQ +5.47% Goldman Sachs turns positive.
  • MLT +16.00% SOL +0.83% merger of unequals.
  • PLS +7.41% lithium story continues.
  • CWP +6.44% trading update.
  • ACW -6.45% bit of profit taking.
  • TLX -2.43% profit taking.
  • BET +0.42% PBH +6.49% US moves.
  • TNT +26.83% ambition now for $180m.
  • COD +23.40% additional information on IOCG mineralisation.
  • CSL -1.47% vaccine weighing perhaps.
  • CHN +6.96% LTR +4.00% back in favour.
  • RBL +6.75% masks are back.
  • Speculative Stock of the Day: Future Metals (FME) +89.41% presentation today on the Panton PGM project.
  • Biggest Winners: MLOT, PLS, ALK, CHN, RBL, PBH, CWP and IGO.
  • Biggest Losers: INR, SWM, BVS, PPC, PPM, IMU and DBI.

TODAY

  • Openpay Group (OPY) +17.02% To acquire Payment Assist for $21.2m, plus earn-out of up to £17m. Payment Assist was founded in 2013 in the UK and has served around 500,000 customers with easy payment plans for automotive servicing and repair.
  • Monadelphous Group (MND) +2.13% Secures several new construction and maintenance contracts in resources sector totalling $215m in value. This includes aBHP Olympic Dam smelter maintenance works, a contract with Rio Tinto for the Gudai-Darri project and several contracts in Chile with Codelco and Escondida.
  • Milton Corporation Limited (MLT) +16.00% To merge with WHSPvia a recommended Scheme of Arrangement at an implied offer value of 600c. Milton Independent Directors have unanimously recommended the merger. The proposal implies that Milton shareholders will receive a total consideration of $6.00 per share comprising: New WHSP Shares, a fully franked Special Dividend estimated to be up to 37 cents per share, the fully franked final dividend from Milton (~ 8cps) and the fully franked final dividend from WHSP (~ 7 cps) based on the exchange ratio at current prices. If the abovementioned dividends are paid, an additional 22cps franking credits will be distributed to Milton shareholders.
  • Tesserent (TNT) +26.83% Provides outlook update, expected annualised turnover $180m vs prior $150m.

ECONOMIC NEWS

  • Weekly consumer confidence up 1.3% as solid labour market data boosted sentiment despite the emergence of a new COVID-19 cluster in Sydney.
  • NSW Budget today. The NSW government is axing stamp duty on electric vehicles. Renewable energy gets a $380m boost over four years.

BOND MARKETS

CV19 NEWS

  • Vaccine Tracker: 2.66bn doses in 180 countries. 39.2m doses a day. In Australia, 103349 doses still on track for 10 months until 75% vaccinated.
  • U.K. Prime Minister Boris Johnson said England is on track for curbs to be lifted in July.
  • Germany warned a fourth wave is possible.
  • China said it needs to fully vaccinate 80%-85% of the population, or just over 1bn people, to reach herd immunity.
  • Olympic crowd will be limited to only 10,000 spectators per venue.
  • U.S. said 150m Americans have been fully vaccinated.
  • Indonesia’s total Covid-19 cases reached 2m.

ASIAN NEWS

  • China bought only US$10bn worth of manufactured, agricultural and energy goods from the U.S. in May, the lowest monthly total since October 2020. These numbers are way below targets.
  • Tesla has now put in EV chargers along the Silk Road. The 5,000km stretch spanning from east to west that’s populated with 27 electric-car charging stations along the way. The route covers nine cities, starting from the eastern coastal hub of Zhoushan and stretching to the western city of Horgos bordering Kazakhstan.

US AND EUROPEAN HEADLINES

  • The dreaded death cross in Bitcoin. Its average price over the last 50 days fell below that of its 200-day moving average.
  • European futures are seeing early modest gains.
  • UK warns overseas travel will not be back to normal until next year.
  • WTI on track for best first half since 2009.

And finally…thanks to Adam for some of these beauties.

My wife told me she’ll slam my head on the keyboard if I don’t get off the computer. I’m not too worried, I think she’s jokinlkjhfakljn m,.nbziyoao78yv87dfaoyuofaytdf

I just got my doctor’s test results and I’m really upset. Turns out, I’m not gonna be a doctor.

As I get older, I remember all the people I lost along the way. Maybe a career as a tour guide was not the right choice.

The doctor gave me some cream for my skin rash. He said I was a sight for psoriasis.

A man walks into a magic forest and tries to cut down a talking tree. “You can’t cut me down,” the tree complains. “I’m a talking tree!” The man responds, “You may be a talking tree, but you will dialogue.”

When my uncle Frank died, he wanted his remains to be buried in his favourite beer mug. His last wish was to be Frank in Stein.

My wife left a note on the fridge that said, “This isn’t working.” I’m not sure what she’s talking about. I opened the fridge door and it’s working fine!

They say that breakfast is the most important meal of the day. Well, not if it’s poisoned. Then the antidote becomes the most important.

“What’s your name, son?” The principal asked his student. The kid replied, “D-d-d-dav-dav-david, sir.” “Do you have a stutter?” the principal asked. The student answered, “No sir, my dad has a stutter but the guy who registered my name was a real jerk.”

When I see the names of lovers engraved on a tree, I don’t find it cute or romantic. I find it weird how many people take knives with them on dates.

I just read that someone in London gets stabbed every 52 seconds. Poor guy.

What’s red and bad for your teeth? A brick.

Why did Mozart kill all of his chickens? When he asked them who the best composer was, they all replied, “Bach, Bach, Bach.”

Give a man a match, and he’ll be warm for a few hours. Set a man on fire, and he will be warm for the rest of his life.

Clarence

XXX