ASX 200 closes up 14 at 7341 (0.2%) after early gains evaporate as Sydney numbers climb. Banks turned negative with the Big Bank Basket down to $179.17. MFG slipped 3.9% on a broker downgrade and Z1P rose 13.7% after media reports of a potential substantial shareholding of around 4%. Healthcare slid with CSL down 0.7% though elsewhere some strength in RHC up 1.3% and COH up 0.7%. Industrials mixed, ALL down 0.8%, WOW up 1.7% and SYD up 2.9% on possible more M&A activity from MQG. Tech stocks mixed as XRO fell 0.4% with APT up 3.0% with the All–Tech Index up 1.1%. Miners were a bright spot with BHP up 1.8%, FMG up 0.7% and gold miners sliding as NCM down 1.1% with PRU down 3.1%. Plenty of activity in explorers and second liners, SYR up 2.4% and LTR up 3.6%. GRR continues to do well on pellet pricing up 2.9%. In corporate news, CRO up 14.3% after signing a referral agreement with Fresh Supply Co, BLD now has a 40% shareholder in SVW which rose 4.4%. CWN once again in front of the Royal Commission falling 1.4%. MQG rose 0.4% after buying AMP ‘s Global Equities and Fixed Interest business. In economic news, RBA governor Lowe has admitted in a speech that high immigration has hurt wage growth and highlighted the importance of achieving sustained full-employment “in the low 4s.” 10-year yields fell to 1.33% and the AUD 74.55c. Asian markets weaker with Japan down 0.6% and China down 0.7%. Dow futures down 92.

Today’s Highlights

  • ASX 200 up 14 to 7341. Gains moderate as CV19 cases increase.
  • High 7382 Low 7327.
  • Dow futures down 92.
  • Big Bank Basket slips to $179.17.
  • All Tech Index up 0.7%
  • Gold steady at $2410 in AUD
  • 10-year yield collapses to 1.33%
  • AUD drops 74.55c
  • Bitcoin drifts to US$33272
  • In Asian markets, Asian markets weaker with Japan down 0.6% and China down 0.7%

STOCKS

  • Z1P +13.73% media reports on Klarna stake.
  • NXL +9.47% bouncing around. No news is good news.
  • TPW +5.32% cocooning is back.
  • RBL +4.40% Sydney masks up.
  • FLN -3.59% Sydney lockdown.
  • MFG -3.87% broker downgrades.
  • CTT -4.85% luxury is out.
  • NOV -5.50% indigestion following capital raising.
  • CRO +14.29% referral agreement with Fresh Supply Co.
  • DGO +12.46% rerating. DEG +% helps.
  • CNQ +25.16% rerating continues following demerger.
  • CWN -1.41% squirming in front of the Royal Commission.
  • AMP -unchanged- MQG +0.45% buys global shares and fixed interest business.
  • AFG -1.85% record home loan lodgements.
  • IEL +2.39% GS raises PT to 3500c.
  • MP1 +0.48% reports growth across the board in June.
  • Speculative Stock of the Day: Nex Metals Exploration (NME) +110.34% Bonanza gold intersections at Kookynie. 5m @25.9g/t from 28m. 6m @20.8g/t from 19m.
  • Biggest Winners: Z1P, NXL, NEA, SZL, TPW, YAL, SVW, RBL and LYC.
  • Biggest Losers: 88E, CTT, ADH, ABR, PLL, SM1, BET, MFG and FLN.

TODAY

  • Macquarie (MQG) +0.45% There is fresh speculation a consortium led by Macquarie is mulling a rival bid for Sydney Airport (SYD). An 825c bid was lobbed by a group of infrastructure investors at the start of the week.
  • Myer Holdings (MYR) -1.14% Reaches out to Premier Investments (PMV) following PMV’s move to lift its stake to more than 15%. Myer said it is open to board representation from Premier. PMV called for the MYR board to step down yesterday.
  • AMP (AMP) – To sell its Global Equities and Fixed Income to Macquarie Asset Management for ~$185m.
  • Challenger (CGF) +0.50% There is heightened speculation that Apollo and Athene could be looking at acquiring all of Challenger. Athene on Tuesday bought a 15% stake in CGF.

ECONOMIC NEWS

  • RBA head teller, Philip Lowe, highlighted the importance of achieving sustained full-employment “in the low 4s” to fuel wage growth.
  • Lowe expects borders will gradually re-open and firms will get some relief in areas where they’re really struggling to find local employees.
  • He said the “step-down in the RBA’s bond purchases from A$5bn to A$4bn a week does not represent a “withdrawal of support by the RBA.”
  • Lowe also admitted that high immigration has hurt wage growth.
  • NSW promised 300,000 more vaccines as case numbers grow.

BOND MARKETS

CV19 NEWS

  • Tokyo in lockdown and Olympics looking more like a no -spectator event.
  • CV19 Deaths hit 4m.
  • Vaccine Tracker: 3.32bn doses on 180 countries. 39.3m a day.
  • Locally 131,726 doses with 7 months to 75%.

ASIAN NEWS

  • Chinese regulators looking at closing loopholes that allow Chinese companies to list in US.
  • China is prohibiting construction of the tallest skyscrapers to ensure safety, anything over 500m is now banned. Issues with quality and one tower in Shenzhen showing signs of a wobble.

US AND EUROPEAN HEADLINES

  • England beat Denmark in thriller. Bring on Italy Sunday. It’s coming home.
  • G20 Finance ministers meet in Venice. More bloody Gondolas.
  • ECB to announce strategy review today, two months early.
  • Trump sues FB, Twitter and Google for censorship.
  • UK opposition leader has warned of a summer of Covid chaos as restrictions set to end July 19th.
  • Pandemic has left 22m people out of work in advanced economies.
  • Russia is stepping in to rescue OPEC deal.

And finally….

A man is flying in a hot air balloon and realises he is lost. He reduces height and spots a man down below. He lowers the balloon further and shouts: “Excuse me, can you tell me where I am?”

The man below says: “Yes, you’re in a hot air balloon, hovering 30 feet above this field.”

“You must be an engineer” says the balloonist.

“I am” replies the man. “How did you know.”

“Well,” says the balloonist, “everything you have told me is technically correct, but it’s no use to anyone.”

The man below says “you must be in management.”

“I am” replies the balloonist, “but how did you know?”

“Well,” says the man, “you don’t know where you are, or where you’re going, but you expect me to be able to help. You’re in the same position you were before we met, but now it’s my fault.”

A climber fell off a cliff, and as he tumbled down, he caught hold of a small branch

“Help! Is there anybody up there?” he shouted.

A majestic voice boomed through the gorge:

“I will help you, my son, but first you must have faith in me.”

“Yes, yes, I trust you!” cried the man.

“Let go of the branch,” boomed the voice.

There was a long pause, and the man shouted up again, “Is there anybody ELSE up there?”

Clarence

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