The ASX 200 is down 23 points in mid-morning trade on flat leads. Energy ↑ on oil price, banks ok on bond yields ↑.  Defensive sectors and tech worst. CSL ex big detractor. SYR market ↓date, MSB partnership. NAB bus confidence today. #ausbiz


  • Economic data – NAB Business Confidence
  • Ex-dividend – Adairs (ADH) 8.0c, Amcor (AMC) 17.7c, Blue Sky Alternatives Access Fund (BAF) 4.0c, CSL 147.8c, Grange Resources (GRR) 1.0c, News Corporation (NWS) 10.3c, RedHill Education (RDH) 2.0c, Reliance Worldwide Corporation (RWC) 5.0c, Sonic Healthcare (SHL) 51.0c, SRG Global (SRG) 0.5c, Tassal Group (TGR) 9.0c,
  • Chinese data – Inflation Rate. PPI
  • Japanese – Machine Tool Orders


  • UK – Employment and wages data
  • US – JOLTs Job Openings


  • Syrah Resources (SYR) – Returned from a trading halt with an update on the natural graphite market and operational response. Sudden and material decrease in spot natural flake graphite prices in China driven primarily by depreciation of Chinese Yuan and Chinese inventory level concerns have impacted price negotiations and contract renewals, with potential for further weakening of prices into Q4 2019. In response to current market conditions, Syrah will: Significantly reduce graphite production volumes in Q4 2019 to approximately 5kt per month; Perform an immediate review of further structural cost reduction at the Balama Graphite Operation (“Balama”) and across the Company; and Conduct a strategic and operational review for 2020, with further details provided in Syrah’s Q3 2019 Quarterly Activities Update to be released on 22 October 2019. Also estimates a non-cash post tax impairment of property, plant and equipment and mining assets of approximately US$60-US$70million and an inventory write down of approximately US$5 million.
  • Mesoblast (MSB) – Has entered into a strategic Partnership with Grünenthal, a global leader in pain management, to develop and commercialise MPC-06-ID, a Phase III allogeneic cell therapy candidate for the treatment of chronic low back pain due to degenerative disc disease in patients who have exhausted conservative treatment options




US EQUITIES – S&P500 +0 (+0.09%), Dow Jones +69 (+0.26%), NASDAQ -14 (-0.17%)

Main themes

  • Stock market mixed, relative weakness in the technology stocks (Visa slid 2.9%, Mastercard fell 3.1% and PayPal lost 3.9%) and strength in the S&P 500 financials and energy sectors due to rise in Treasury yields and higher oil prices
  • Lingering optimism about growth prospects, trade relations
  • US-China – China may increase purchases of US agricultural products if the US eased restrictions on Huawei and delay higher tariffs on about $250bn worth of Chinese imports. Treasury Secretary Steven Mnuchin also said that China and the US have a “conceptual agreement” on enforcement mechanisms around intellectual property theft.

EUROPEAN MARKETS – Mostly lower, with the focus on Brexit developments and the hopes for policy stimulus at this week’s ECB meeting. STOXX600 -0.28%, UK FTSE -0.64%, German DAX +0.28% the exception, French CAC -0.27%.


  • The USD is unchanged at 98.20.
  • The Aussie is stronger at US68.65.

BONDS – 2-yr: +5 bps to 1.57%, 3-yr: +6 bps to 1.52%, 5-yr: +6 bps to 1.48%, 10-yr: +7 bps to 1.62%, 30-yr: +8 bps to 2.10%


  • Oil – WTI futures were up US$1.33 or 2.4% to US$57.85. The new Saudi energy minister, Prince Abdulaziz bin Salman, confirmed the continuation of limiting output to support prices. Israeli Prime Minister Benjamin Netanyahu also said that Iran has a secret nuclear facility and called for action
  • Gold futures fell 0.3% to US$1,510.70 an ounce due to improved risk sentiment.
  • Iron Ore – CommSec has iron ore up 4.4% to US$91.95 a tonne.
  • LME metals – Mixed. Cu -0.15%, Ni +1.54%, Al +0.73%.


  • The Bank of Korea cautioned that South Korea’s potential GDP will fall at a faster rate than previously expected due to a decreasing number of eligible workers as the country’s population ages.
  • China’s August trade surplus $34.83 bln (expected $43.00 bln; last $44.58 bln). Imports -5.6% (expected -6.0%; last -5.6%) exports -1.0% (expected 2.0%; last 3.3%).
  • The British Parliament passed a bill that blocks a no-deal Brexit on October 31. The Parliament is now prorogued until October 14.
  • The German government is reportedly considering a “shadow budget” that would increase public investment and would not be subject to rules that govern national debt.
  • European data – September Sentix Investor Confidence -11.1 (expected -14.0, last -13.7). UK July GDP +0.3% (last 0.0%). July Construction Output +0.5% (expected 0.2%; last -0.7%) to be +0.3%yoy (expected 0.1%; last -0.2%). July Industrial Production +0.1% (expected -0.1%; last -0.1%) to be -0.9%yoy (expected -1.1%; last -0.6%). July Manufacturing Production +0.3% (expected -0.1%; last -0.2%) to be -0.6%yoy (expected -1.1%; last -1.4%).

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