ASX 200 rallied back from early losses to close only 25 points down at 7990 (-0.3%). No follow through this morning as resources found some bargain hunters and banks eased only slightly. The Big Bank Basket dropped to $245.27 (-0.5%). Losses across the financials, MQG off 0.6% and insurers falling, QBE down 0.4% and SUN down 1.3%. REITS were positive across the board with some M&A in HPI keeping the spice in the sector. GMG up 0.7% and SGP up 2.2%. Industrials were generally weaker, retail stocks suffered as PMV fell 3.9% on a trading update and the Smiggle boss sacked. LOV fell 4.5% with SUL down % on its ex-dividend, DMP continued lower on a class action, and travel stocks in trouble, CTD down 5.3%. Iron ore miners perked up, BHP up 0.8% and FMG up 0.5% with some small gains in lithium stocks. PLS unchanged and LYC up 4.1%. Gold miners on the nose following bullion falls in USD. NST down 0.5%, EVN dropped 3.0% and RED off 3.3%. Oil and gas weaker. In corporate news, WBC has a new ‘King’ in Anthony Miller, HPI saw a bid from CQR, and on the economic front, Business turnover rose 1.0% in July. Asian markets eased, Japan down 0.5%, HK off 2.1% and China down 1.3%. 10Y yields rose to 3.94%. Dow and NASDAQ Futures up 0.3% and 0.5% respectively. 

HIGHLIGHTS

  • Winners: CTT, OPT, HPI, ARB, CAT, BOT, GYG
  • Losers: SUL, PMV, NHF, SDF, JLG, CDA, CTD
  • Positive sectors: Iron ore. REITs.
  • Negative sectors: Banks. Insurers. Retail. Gold Miners.
  • ASX 200 Hi 8004 Lo 7819
  • Big Bank Basket: Lower at $245.27
  • All-Tech Index: Up 0.1%
  • Gold: Steady at $3,732
  • Bitcoin: falls to US$54758
  • 10-year yields fall to 3.95%
  • AUD: weaker to 66.67c
  • Asian markets: Japan down 0.5%, HK off 2.1% and China down 1.3%.
  • Dow Futures up 124 NASDAQ Futures up 110
  • European futures opening slightly higher. ECB this week.

MAJOR MOVERS

  • CTT +17.8% March goes on.
  • OPT +14.0% Corporate presentation.
  • HPI +7.5% Reject takeover approach at 365c from CQR
  • ARB +6.3% conditional agreement for ORW to acquire US-based 4WP assets
  • MP1 +0.4% ECP Asset Management has been buying more. Now just short of 7%.
  • DMP -3.1% class action.
  • GTN unchanged – Viburnum Funds makes a lowball offer.
  • GYG +4.8% going into ASX 200.
  • APX +15.3% on a roll again.
  • PBH +11.8% HG Vora sells down again.
  • LRV +18.1% picking up.
  • SUL -7.4% ex dividend.
  • SDF -6.1% ABC Media reports.
  • JLG -6.0% keeps falling.
  • OBL -9.6% ceasing to be a substantial holder.
  • GDC -6.8% Airtrunk disappointment.
  • VUL -3.2% slipping finally.
  • ADT -3.6% under pressure.
  • Speculative Stock of the Day: Nothing on any volume.

COMPANIES

ECONOMIC AND OTHER NEWS

  • ABS news. “Business turnover rose 1.0% in July in seasonally adjusted terms following falls in the previous two months.
  • Morgan Stanley reduced its Brent crude price forecasts for the second time in a matter of weeks, as demand challenges mount while supplies remain plentiful.
  • The global benchmark will average $US75 a barrel in the fourth quarter, according to a note.
  • China’s consumer prices rose less than expected last month. The consumer price index increased 0.6% from a year earlier, the National Bureau of Statistics said today. That compares with an increase of 0.5% in July and a median forecast of 0.7%.
  • The producer price index fell by 1.8% year on year in August, more than the estimated 1.4% decline as per the Reuters poll.
  • Oil, coal and other fuel industries reported a 3% year-on-year drop in prices, reversing a 4.3% increase in July.
  • ECB Meeting this week.
  • European banks set for slowest mortgage lending growth in a decade.
  • Presidential debate this week. Apple day too.
  • Treasury Secretary Janet Yellen said that she believes the U.S. economy is healthy and that recent months of cooler jobs data is a signal of a soft landing, not a recession.
  • Circle K owner still wants friendly 7-Eleven deal after $39bn offer rejected.

And finally…..

Clarence

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