MID MORNING MARKETS 21-08-18

The ASX200 is down 49 points in mid-morning trade amid political spill. MOst sectors lower. Banks and big caps the worst. Results dominate. BHP, AMC, AHY, SWM -ve. FXL, MND, HLO +ve. CPU, FXJ, REA ex-div #ausbiz

m1m2m3TODAY

  • Ex-dividend – Computershare (CPU) 21.0c, Fairfax Media (FXJ) 1.8c, Insurance Aust. Grp (IAG) 20.0c, Infomedia (IFM) 1.7, IPH 11.0c, REA Group (REA) 62.0c
  • RBA Meeting Minutes
  • Japanese – All Industry Activity Index

TONIGHT

  • UK Public Sector Net Borrowing, CBI Industrial Trends Orders

COMPANY NEWS

  • BHP Billiton (BHP) –

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  • Amcor (AMC)- NPAT US$724.0m, in line with last year on a constant currency basis; EPS US62.6c, in line with last year on a constant currency basis; Strong profit before interest and tax (PBIT) margin of 11.6%; Strong returns, measured as profit before interest and tax to average funds employed of 19.0%; Free cash flow, after net capital expenditure and cash restructuring of USD 194.1 million(3); Full year dividend up 4.7% to US45c. Encouraging signs heading into the 2019 financial year. Earnings in the first half of the 2018/19 financial year are expected to be modestly higher than the prior year, subject to raw material cost development through the remainder of the first half.

RESULTS SEASON SCORECARD

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OVERNIGHT

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SPI FUTURES -3

US EQUITIES – S&P500 +7 (+0.24%), Dow Jones +89 (+0.35%), Nasdaq +5 (+0.06%).

Main themes

  • Markets were more optimistic about US-Chinese trade relations ahead of talks on Wednesday.
  • US President Trump complained to Republican donors at a fundraiser about the Federal Reserve, saying he was “not thrilled” with Fed Chair Jerome Powell for raising rates

EUROPEAN MARKETS – All higher. UK FTSE +0.43%, German DAX +0.99%, French CAC +0.65%.

CURRENCIES

  • The US dollar was down 0.4% at 95.73
  • The Aussie dollar is stronger at 73.46.

BONDS – 2-yr: -3 bps to 2.59%, 5-yr: -5 bps to 2.70%, 10-yr: -5 bps to 2.82%, 30-yr: -5 bps to 2.98%

COMMODITIES

  • WTI crude futures closed up US52c higher at US$656.43 a barrel, on easing concerns about US-China trade war.
  • Iron Ore – IRESS reports iron ore unchanged at US$67.50 a tonne. The CommSec site says China Import (Fines 62% Fe) was up US45c at US$67.95/dry ton. (CFR Tianjin port)
  • LME metals – Mixed. Cu +1.11%, Ni +0.59%, Al +1.23%

ECONOMIC DATA, NEWS & POLITICS

  • Italian Cabinet Undersecretary Giancarlo Giorgetti said he hopes the ECB extends its quantitative easing program to prevent a speculative attack
  • European data – German July PPI +0.2% (expected 0.4%; last 0.3%) to be +3.0%yoy (as expected, last 3.0%)

QUOTE OF THE DAY

“My brother is really, really slow.” – Usain Bolt. Jamaican athlete born this day in 1986. And yes…everything is relative.

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