ASX 200 up 27 points to 7538 (0.36%) – Results beckon. US jobs number tonight.
- HIGH 7538 LOW 7497 Narrow range and lacklustre volumes. Late surge.
- ASX 200 up 2% for the week. Banks charge.
Winners: VUL LKE BET SYA INR NWS AVZ CTT
Losers: AIS PRU DHG REA ALK 88E
- POSITIVE SECTORS: Banks. Healthcare. Industrials. REITs. BNPL.
- NEGATIVE SECTORS: Miners.
- BIG BANK BASKET: Better at $184.06
- ALL -TECH INDEX: Up 1.1%.
- GOLD: Slips to AUD $2438.
- BITCOIN: US$40228. Through crucial level.
- AUD: Steady at 73.87c. 10-YEAR YIELD: Up to 1.17%
- ASIAN MARKETS: Tokyo up 0.33%. Hong Kong down 0.03%, China down 0.96%.
- US FUTURES: Dow futures down 34. NASDAQ up 4.
ASX 200 dithered all day before closing up strongly on the match up 27 at 7538for a weekly gain of around 2%. Banks were once again better, and miners were once again easier as iron ore continues to feel the wrath after falling from US$220 to US$170 in recent weeks. BHP fell 2.0% and FMG off 1.0%. The Big Bank Basket rose to $184.06. Other financials did well with MQG up 0.5% and IAG doing better up 2.5%. Industrials were solid, WOW up 0.7% and GMG better by 1.0%. Tech better led by APT up 5.5% as Square rose in US. Healthcare doing well as CSL benefitting from the AZ boost, up 1.4%. RMD results today were a little disappointing on margins but no real dramas with the stock closing up 0.3%. Gold miners weak led by NCM down 2.0% and NST off 3.3% as Diggers and Dealers hangovers take centre stage.
In corporate news, NWS is 7.9% higher on its most profitable year on record. BET up 13.5% as New Jersey legalises fixed odds betting on horse racing, PBH up 4.2% in support. The RBA has released its outlook for the economy and trimmed its growth forecasts by 0.75% for 2021. Next year’s GDP forecast was lifted to a little over 4%
STOCKS ON THE MOVE
- BET +13.46% NJ announcement on fixed odds betting. PBH rise % on news.
- LKE +14.78% bonus options timetable.
- VUL +15.42% rush continues.
- NWS +7.88% Binge doing well.
- APT +5.5% follows Square.
- DHG -4.94% REA -4.7% results disappointment.
- PRU -5.41% gold miners on the nose.
- Z1P +1.72% BNPL valuations.
- RXM -16.67% placement at 30c
- PDI -10.81% gold price.
- CXO +14.29% lithium rally.
- MNS +9.21% punters love it.
- Speculative Stock of the Day: Hot Chilli (HCH) +22.22% resumption of trade. Glencore takes a 9.9% stake at 3.2c. Company raises $40m.
- News Corp. (NWS) +7.88% Q4 EPS US$0.16 ex-items vs consensus US$0.05. Revenue US$2.49bn vs consensus US$2.24bn.
- ResMed (RMD) +0.24% Q4 non-GAAP EPS US$1.35. Revenue US$876.1m vs consensus US$799.5m. Increases quarterly dividend by 7.7% to US$0.42 from US$0.39. The new annualized dividend yield is 0.63% vs prior annualized dividend yield of 0.58%. Expects to grow steadily through FY22.
- REA Group (REA) -4.70% Full-year core profit $318m. Revenue $927.8m vs consensus $915.4m. Core EBITDA $564.8m vs consensus $557.2m. Final dividend of 72c fully franked. Despite COVID related volatility, market dynamics remain strong, with strong levels of buyer enquiry underpinned by low-interest rates and healthy bank liquidity. Listings volumes in July were down 3% vs a year ago, with Melbourne +3% and Sydney listings down 22%.
- Betmakers Technology Group (BET) +13.46% Observes New Jersey has legalised fixed odds betting on horse racing. Becomes the first state in the US to legalise Fixed Odds betting on horse racing. BetMakers has an exclusive 10-year Fixed Odds agreement on thoroughbred horse racing in New Jersey.
ECONOMIC NEWS/ BOND MARKETS
- Morgan Stanley has an equal-weight rating on National Australia Bank and a 2720c price target. The broker forecasts a quarterly cash profit of $1.55bn and total dividends of 120c over FY 2021. Dividends are tipped to climb to 130cin FY 2022 and 140c in FY 2023.
- Google’s Larry Page is now a Kiwi.
- Richard Branson has realesed the prices for a trip to space US$450,000. Just in time for Xmas.
RBA’s Statement on Monetary Policy
- Beyond the near term, the level of output is expected to be a little higher than expected at the time of the previous Statement, underpinned by stronger private investment and public demand.
- Under the baseline scenario, GDP is forecast to grow by a little above 4% over 2022, and 2.5% over 2023
- Unemployment is expected to increase in the near term, before resuming its decline to be around 4% by the end of 2023, which would be the lowest rate in many years.
- Wages growth and underlying inflation are also forecast to pick up a little more relative to the previous Statement. Inflation is forecast to rise a little above 2% by the end of 2023 in the baseline scenario.
IN THE NEWS
- The Sydney Morning Herald/The Age Scope mid-year survey of 22 leading economists, of which 18 provided housing predictions, shows a rapid slowdown in property price growth is expected in the nation’s two biggest capital cities over the next year and a half.
- The panel on average believes the height of the property boom has passed.
- NSW hits another record of 291 new cases.
- Chinese CV19 cases jump to 101. Japan getting worse with patients in hospital now topping 1200.
- Malaysian numbers hit 20,000 yesterday.
- Xi Jinping pledged to dramatically expand Covid-19 vaccine exports to 2bn doses this year. Joe Biden has ramped up American vaccine shipments after the U.S. was accused of hoarding supplies.
- India keeps rated steady with a focus on growth.
- Korean online bank KakaoBank has risen over 70% in its debut, now the largest online bank in Korea. Now US$27bn market cap.
US AND EUROPEAN NEWS
- US Jobs data tonight.
- UK BoE says it will modestly tighten policy over next two years.
- Messi to part ways with Barcelona after nearly twenty years.
- Interesting headlines from the FT, Apple plans to scan US iPhones for child abuse material.
- Europeans bracing for a winter flu outbreak as social distancing ends.
- Moderna says vaccine 93% effective 6 months later.
- UK minister warns of vaccines ‘for evermore’ for international travel.
My wife bought a world map and then gave me a dart and said, “Throw this and wherever it lands—that’s where I’m taking you when this pandemic ends.” Turns out, we’re spending two weeks behind the fridge.
After years of wanting to thoroughly clean my house but lacking the time, this week I discovered that wasn’t the reason.
- I’m not talking to myself, I’m having a parent-teacher conference.
Being quarantined with a talkative child is like having an insane parrot glued to your shoulder