The ASX200 is up 45 points in mid-morning trade after a big turnaround in the US overnight following Fed rate cut and fence sitting adjustment. Gold ↓ but all other sectors ↑. BKW results, RWC investor briefing, RFF woes continue and big jobs data ahead.


  • Ex-dividend – 5G Networks (SGN) 1.0c, Apiam Animal Health (AHX) 0.8c, Clime Investment Management (CIW) 1.5c, Cochlear (COH) 175.0c, Crown Resorts (CWN) 30.0c, Embelton (EMB) 20.0c, Kelly Partners Group Holdings (KPG) 1.2c, Pinnacle Investment Management Group (PNI) 9.3c, QMS Media (QMS) 1.2c, Sigma Healthcare (SIG) 1.0c, Spark New Zealand (SPK) 11.4c, Swick Mining Services (SWK) 0.6c
  • Economic data – Unemployment Rate, Employment Change
  • RBA Bulletin
  • BoJ Interest Rate Decision –
  • Japanese data – All Industry Activity Index


  • Europe – Current Account
  • UK data – Retail Sales
  • BoE Interest Rate Decision
  • US economic data – Philadelphia Fed Manufacturing Index, Current Account, Existing Home Sales, Leading Index


  • Reliance Worldwide (RWC) – INvestor presentationm1
  • Brickworks (BWK) – Outlook.  Within Building Products Australia, orders and sales are currently steady in most divisions but a soft first half is anticipated. 2H expect the market to strengthen, based on the current level of home builder sales.


  • Washington H. Soul Pattinson (SOL) – Results. Better contributions from BKW, income from investments, the Property portfolio and the financial services portfolio. This was offset by TPM, and loss from Round Oak Minerals.





US EQUITIES – S&P500 +1 (+0.03%), Dow Jones +36 (+0.13%), NASDAQ -9 (-0.11%)

Main themes

  • Fed cut interest rates as expected. James Bullard wanted a 50bp cut, while Esther George and Eric Rosengren wanted to leave rates where they were. Offered few indications that further interest rate reductions lay ahead.
  • In terms of the specific dots, just 7 officials expect one more 25bp rate cut this year with 8 officials expecting the policy rate to be in a 1.5-1.75% range in 2020.
  • President Donald Trump responded that the Fed and its chairman, Jerome Powell, have “no ‘guts,’ no sense, no vision!”
  • Oil prices fell 2.1% after Trump tweeted this morning that he ordered Treasury Secretary, Steven Mnuchin, to “substantially increase sanctions on the country of Iran!”

EUROPEAN MARKETS – Mixed. STOXX600 +0.02%, UK FTSE -0.09%, German DAX +0.14%, French CAC +0.09%


  • The USD is weaker at 98.55.
  • The Aussie is also weaker at US68.33.

BONDS – 2-yr: +2 bps to 1.75%, 3-yr: UNCH at 1.69%, 5-yr: UNCH at 1.66%, 10-yr: -3 bps to 1.79%, 30-yr: -4 bps to 2.24%


  • Oil – WTI futures closed down US$1.23 or 2.1% at US$58.11 a barrel after US President Donald Trump said he ordered the Treasury Department to “substantially increase” sanctions on Iran. It comes after news supply will be back online by the end of September.
  • Gold futures fell 0.5% to US$1,505 an ounce
  • Iron Ore – CommSec has iron -40c to US$96.10/t
  • LME metals – Mixed. Cu -0.42%, Ni +0.64%, Al +0.14%.


  • Economic data yesterday – Westpac-MI Leading Index 0.3% (last 0.1%).
  • Brexit – The European Parliament voted in favour of granting another Brexit extension if the UK chooses to make that request. EC President Jean-Claude Juncker said that the risk of a no-deal Brexit has become palpable.
  • European data – August CPI 0.1% (expected 0.2%; last -0.5%) to be +1.0%yoy (as expected, last 1.0%); UK CPI +0.4% (expected 0.5%; last 0.0%) to be +1.7%yoy (expected 1.8%; last 2.1%). August Core CPI +0.4% (expected 0.7%; last 0.1%) to be 1.5%yoy (expected 1.8%; last 1.9%). Input PPI -0.1% (expected -0.4%; last 0.6%) and Output PPI -0.1% (expected 0.1%; last 0.3%). August House Price Index -0.7% (last 0.9%).

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