MID MORNING MARKETS 28-06-19

The ASX 200 is down 13 points in mid morning trade on flat/mixed o/shore leads. Banks best, resources lagging. It’s all about next week. G20, OPEC, RBA, US jobs #ausbiz

m1m2m3TODAY

  • Australian data – Private Sector Credit
  • Japanese data – Unemployment Rate, Industrial Production, Construction Orders, Housing Starts
  • G20 Summit Meeting

TONIGHT

  • European – Inflation data
  • UK data – GDP (Final), business investment, house prices and current account
  • US economic data – Personal Income, Personal Spending, PCE Price Index, Core CPE Price Index, Univ. of Michigan Consumer Sentiment – Final

NEXT WEEK

  • G20 this weekend
  • OPEC meeting in Vienna (July 2)
  • Vocus Communications (VOC) – Strategy Briefing on 3 July
  • RBA interest rate decision on Tuesday and retail sales on Thursday
  • Chinese Caixin PMI number,
  • US – ISM index on Monday, factory orders Tuesday, and employment data on Friday

COMPANY NEWS

  • Commonwealth Bank (CBA) – Leadership Team Update. f Anna Lenahan, Group General Counsel and Group Executive Group Corporate Affairs has retired and the roles have been separated. Priscilla Sims Brown has been appointed to the role of Group Executive Marketing and Corporate Affairs. The appointment of the new Group General Counsel and Governance is expected to be made soon.
  • Qube (QUB) – Has announced its intention to make an off-market takeover offer for Chalmers Limited (CHR) for either 2.31 Qube shares (the Scrip Option) or $6.50 cash (the Cash Option). This values Chalmers at approximately $60 million with any cash component to be funded from existing Qube debt facilities. The implied scrip option is $7.00, a 49% premiou to the closing price of $4.7 on 27 June (aand 61% to the one month VWAP).
  • Dulux Group (DLX) – NZ overseas Investment Office has approved the takeover of DLX by Nippon Paint holdings.
  • AGL – Expects first gas to be delivered from the proposed AGL Gas Import Jetty at Crib Point in Victoria in the second half of FY22 (previously indicated first gas could potentially be delivered during FY21) following a decision to use the Hoegh Esperanza as the floating storage and regasification unit (FSRU), as opposed to the Hoegh Giant as communicated in December 2018.
  • Domino’s Pizza (DMP) – Class Action Update. Continues to defend it actions, saying the industrial agreements were legal.
  • Oil Search (OSH) – Will exercise the Armstrong / GMT Option for US$450m, which doubles the Company’s interests in the Pikka Unit, Horseshoe Block and other exploration leases.
  • Ausnet Services (AST) – Resignation of its Chief Financial Officer, Adam Newman
  • CSR update – Property Presentation.

m1


OVERNIGHT

m10

SPI FUTURES -9

US EQUITIES – S&P 500 +11 (+0.38%), Dow -10 (-0.04%), NASDAQ +58 (+0.73%).

Main themes

  • Markets await G-20 summit; financials led the broad-based advance
  • Conflicting US-China trade headlines, but the market remained optimistic

EUROPEAN MARKETS – Mixed. STOXX600 +0.00%, UK FTSE -0.19%, German DAX +0.21%, French CAC -0.13%

CURRENCIES

  • The USD is little changed at 96.21.
  • The Aussie dollar is stronger at US70.08.

BONDS –2-yr: -4 bps to 1.74%, 3-yr: -5 bps to 1.70%, 5-yr: -4 bps to 1.76%, 10-yr: -4 bps to 2.01%, 30-yr: -4 bps to 2.53%

COMMODITIES

  • Oil – WTI futures rose 5c or 0.1% to US$59.43 ahead of the G20, after a big rally on Thursday due to a 12.8mb fall in EIA inventories.
  • Gold fell US$3.40 to $1,412.00 an ounce.
  • LME metals – Mixed. Cu +0.07%, Ni +1.72% the highlight, Al -1.27% the highlight

ECONOMIC DATA, NEWS & POLITICS

  • US-China talks – Negotiators from China and the US reportedly looking to put trade talks back on track, but the Chinese side is asking for a steep price to return to the table
  • US economic data – Weekly Initial Claims 227,000 (consensus 219,000; prior revised to 217,000 from 216,000), Continuing Claims 1.688m (prior revised to 1.666m from 1.662m), Q1 GDP — Third Estimate 3.1% (consensus 3.1%; prior 3.1%), and Q1 GDP Deflator — Third Estimate 0.9% (consensus 0.8%; prior 0.8%); May Pending Home Sales 1.1% (consensus 1.0%; prior -1.5%)
  • European data – Business and Consumer Survey decreased to 103.3 (expected 104.6) from 105.2.
  • Brexit – Members of the British Parliament who are against Brexit will reportedly try to block a no-deal Brexit by cutting off some government funding during the first week of July.

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