MID MORNING MARKETS 27-06-19

The ASX 200 is down 23 points in mid morning trade on weaker o/shore leads. REITS and utilities ex-div the big drag. Energy the highlight after oil stockpile drawdown. New CTD global CFO, BVS ups GBT offer, Wealth report today #ausbiz

m1m2m3

TODAY

  • Finance & Wealth publication (Mar quarter) with detailed estimates on household wealth. Lower home prices have restrained wealth levels (-3.0% in the Q), while 9.7% in shares will be a positive.
  • Ex-dividendAbacus (ABP) 9.3c, APN Industria REIT (ADI) 4.3c, Australian Unity Office Property Fund (AOF) 4.0c, Aveo (AOG) 4.5c, APA Group (APA) 25.5c, Aims Property Securities (APW) 0.6c, Aspen Group (APZ) 2.7c, APN Convenience Retail REIT (AQR) 5.2c, Arena REIT (ARF) 3.4c, Aventus Retail Property Fund (AVN) 4.2c, Australian Enhanced Income Fund (AYF) 8.0c, BWP Trust (BWP) 10.7c, Carindale Property Trust (CDP) 18.1c, Charter Hall (CHC) 17.2c, Centuria Industrial REIT (CIP) 4.6c, Charter Hall Long Wale REIT (CLW) 7.1c, Centuria Metropolitan Reit (CMA) 4.4c, Cromwell Property (CMW) 1.8c, Centuria Capital (CNI) 5.0c, Charter Hall Education Trust (CQE) 4.0c, Charter Hall Retail (CQR) 14.5c, UBS IQ Morningstar Australia Dividend Yield ETF (DIV) 0.0c, Dexus (DXS) 23.0c, Elanor Investor (ENN) 8.9c, Elanor Retail Property Fund (ERF) 4.3c, UBS IQ Morningstar Australia Quality ETF (ETF) 0.0c, Forager Australian Shares Fund (FOR) 1.4c, Fat Prophets Global Property Fund (FPP) 3.6c, Gryphon Capital Income Trust (GCI) 0.9c, Garda Capital Group (GCM) 1.3c, Garda Diversified Property Fund (GDF) 2.3c, GDI Property (GDI) 3.9c, Growthpoint Properties Australia (GOZ) 11.6c, GPT Group (GPT) 13.1c, Hotel Property Investments (HPI) 10.1c, Infigen Energy (IFN) 1.0c, Kirkland Lake Gold (KLA) 4.9c, ALE Property (LEP) 10.5c, Mirvac Group (MGR) 6.3c, Mitchell Services (MSV) 0.1c, New Energy (NEW) 3.9c, National Storage REIT (NSR) 5.1c, SPDR Financials ex-REIT Fund (OZF) 0.0c, SPDR Resources Fund (OZR) 0.0c, Perpetual Credit Income Trust (PCI) 0.1c, Qualitas Real Estate Income Fund (QRI) 0.8c, Reef Casino Trust (RCT) 2.6c, Redcape Hotel (RDC) 2.2c, Rural Funds (RFF) 2.6c, Shopping Centres Australasia Property (SCP) 7.5c, SPDR S&P/ASX 50 (SFY) 0.0c, Stockland (SGP) 14.1c, SPDR S&P/ASX 200 Listed Property Fund (SLF) 0.0c, SPDR Small Ords Fund (SSO) 0.0c, SPDR S&P/ASX 200 Fund (STW) 0.0c, Sydney Airport (SYD) 19.5c, SPDR MSCI Australia Select High Dividend Yield Fund (SYI) 0.0c, Transurban Group (TCL) 30.0c, 360 Capital Total Return Fund (TOT) 3.0c, UBS IQ MSCI Australia Ethical ETF (UBA) 0.0c, UBS IQ MSCI Europe Ethical ETF (UBE) 0.0c, UBS IQ MSCI Japan Ethical ETF (UBJ) 0.0c, UBS IQ MSCI Asia Apex 50 Ethical ETF (UBP) 0.0c, UBS IQ MSCI USA Ethical ETF (UBU) 0.0c, UBS IQ MSCI World Ex Australia Ethical ETF (UBW) 0.0c, US Masters Residential Property (URF) 1.0c, Vicinity Centres (VCX) 8.0c, Viva Energy REIT (VVR) 7.2c
  • Japanese data – Retail Sales
  • Chinese Industrial Profits (YTD)

TONIGHT

  • European data – Business Confidence, Services Sentiment, Consumer Confidence Final, Consumer Inflation Expectations, Economic Sentiment, Industrial Sentiment
  • UK – Gfk Consumer Confidence
  • US economic data – GDP – Third Estimate, GDP Deflator – Third Estimate, Pending Home Sales

COMPANY NEWS

  • Bravura (BVS) – Prepared to provide a further revised non-binding indicative proposal to acquire GBST at $3.00 per share. The proposal will be withdrawn at 4pm tomorrow unless a Process Deed (which gives exclusivity and access to due diligence) is executed.
  • Sonic Healthcare (SHL) – Has sold its 85% shareholding in GLP Systems GmbH (“GLP”; headquartered in Hamburg, Germany) to Abbott (headquartered in Abbott Park, IL, United States). Abbott has also acquired the remaining 15% interest in GLP.
  • Corporate Travel (CTD) – Former Tatts Group CFO, Neale O’Connell, has been appointed as new Global CFO
  • Transurban (TCL) – €350m private placement of senior secured 15 year notes – swapped into fixed rate Australian dollars and will be used for general corporate purposes and to fund the development pipeline

OVERNIGHT

m10m11

SPI FUTURES -11

US EQUITIES – S&P 500 -4 (-0.12%), Dow -11 (-0.04%), NASDAQ +25 (+0.32%).

  • Major themes
  • Strength in the tech and energy stocks, weakness in the defensive-oriented sectors
  • Positive tone from comments by Treasury Secretary Mnuchin reminds that the US-China trade deal was 90% complete before talks stalled. t should be noted, though, that Mr. Mnuchin simply reiterated that the U.S. was 90% close to a deal, which he said in April, and that there remains a path to a deal.

EUROPEAN MARKETS – Mostly lower. STOXX600 -0.31%, UK FTSE -0.08%, German DAX +0.14% the exception, French CAC -0.25%

CURRENCIES

  • The USD is stronger at 96.20.
  • The Aussie dollar is also stronger at US69.85.

BONDS – 2-yr: -4 bps to 1.74%, 3-yr: -5 bps to 1.69%, 5-yr: -5 bps to 1.75%, 10-yr: -5 bps to 2.02%, 30-yr: -4 bps to 2.55%, The 10 year is down 88bps over the year.

COMMODITIES

  • Oil – WTI futures rallied 2.7% to US$59.38after inventory data. EIA inventories fell 12.8mb, the biggest draw since September 2016, while rising US-Iranian tensions also provided support.
  • Iron Ore – IRESS has iron ore unchanged at US$117.00 a tonne. CommSec has iron ore up 1% to US$114.75 a tonne.   
  • Gold fell 0.1% to $1,416.80 an ounce, on reduced Fed rate cut expectation.
  • LME metals – Mixed. Cu -0.27%, Ni +1.67%, Al -0.06%

ECONOMIC DATA, NEWS & POLITICS

  • US economic data – Weekly MBA Mortgage Index 1.3% (prior -3.4%); May Durable Orders -1.3% (consensus -0.3%; prior -2.8%) and Durable Orders ex-transportation 0.3% (consensus 0.1%; prior -0.1%), May Advance International Trade in Goods -$74.6bn (prior -$70.9bn), May Advance Retail Inventories 0.5% (prior 0.6%), and May Advance Wholesale Inventories 0.4% (prior 0.9%)

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