Day Trading Pre-market Open - 11 Feb 2019

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    Good morning traders. Thanks to @ttward, @Ravgnome & the Aftermarket loungers.


    No particularly big ticket news item to look forward to for the markets this week (nothing like last week at least), although in the Beijing we do have negotiations kicking off again between the US and China, and we also have the US government starting down the barrel of another shutdown later this week, if they can’t come to an agreement to fund the Government.


    ASX Market Report


    Australian shares have finished the week on a down note, with energy and mining sectors dragging the local bourse.


    The benchmark S&P/ASX200 index closed down 21 points, or 0.34 per cent, at 6,071.5 points at 1615 AEDT on Friday, while the broader All Ordinaries was down 22.9 points, or 0.37 per cent, at 6,136.2.


    CommSec market analyst James Tao said Friday was the day "we end our four-day winning streak," referring to recent gains by the ASX200.


    But the index still finished up 3.56 per cent on the week, its best weekly performance since the ASX200 gained 3.81 per cent in mid-July of 2016.


    The markets were likely spooked on Friday on word from Washington that President Donald Trump and Chinese President Xi Jinping had no plans to meet before a March 1 deadline to resolve their trade dispute, which "puts a dent in those thinking we could see a quick resolution in that space," Mr Tao said.


    There was also gloomy news from the United Kingdom, with the Bank of England saying it expected the country's economic growth to be at its lowest level since 2009.


    The energy sector led losses as oil prices fell more than two per cent, with oil and gas producer Santos Ltd losing 4.37 per cent to $6.35 and Oil Search dropping 3.5 per cent to $7.72.


    A drop in copper prices also saw BHP dropping 1.51 per cent, to $35.33, and Rio Tinto dropping 1.77 per cent, to $90.57.


    NAB closed down 0.72 per cent, or 18 cents, to $24.75, after the company announced after the close on Thursday that chief executive Andrew Thorburn and chairman Ken Henry would step down in the wake of criticism from the financial services royal commission.


    Commonwealth Bank shares gained 0.93 per cent, or 69 cents, to $74.75, while Westpac was down 0.33 per cent and ANZ was up 0.11 per cent.


    Property classifieds firm REA Group was down 4.98 per cent after it said its Australian real estate listings had dropped three per cent in the first half, and would likely drop lower as buyers wait for the results of the federal election.


    Telstra gained 5 cents, or 1.57 per cent, to $3.24.


    Meanwhile, the Aussie dollar dropped again after the RBA released its statement on monetary policy, with the central bank cutting its forecasts for inflation and GDP.


    The Aussie dollar was buying 70.77 US cents, from 70.99 US cents on Thursday.



    * The benchmark S&P/ASX200 index was down 21 points, or 0.34 per cent, at 6,071.5 points at 1615 AEDT on Friday.

    * The All Ordinaries was down 22.9 points, or 0.37 per cent, at 6,136.2

    * At 1630 AEDT, the SPI200 futures index was down 4 points, or 0.07 per cent, at 6,007.0.



    One Australian dollar buys:

    * 70.77 US cents, from 70.99 US on Thursday

    * 77.65 Japanese yen, from 78.02

    * 62.41 euro cents, from 62.48

    * 54.66 British pence, from 54.89

    * 104.80 NZ cents, from 105.18



    The spot price of gold in Sydney at 1630 AEDT was $US1308.91 per fine ounce, from $US1309.99 on Thursday.


    In Asia


    Stock markets in Asia eased, with MSCI’s broadest index of Asia-Pacific shares outside Japan shedding over half a percent, retreating from a four-month peak touched the previous day.


    This week Australia’s central bank signalled monetary easing in the face of economic headwinds, joining the U.S. Federal Reserve and the European Central Bank in indicating policy shifts. The Fed has all but abandoned plans for further rate hikes, while the ECB also sounded less certain that it will start tightening policy this year.


    The Australian dollar was on course to end a bearish week firmly on the back foot, last trading down 0.3 percent at $0.7077.


    The Aussie slid sharply on Wednesday after the Reserve Bank of Australia stepped back from its long-standing tightening bias, saying the next move in rates could just as well be down as up. The currency was headed for a weekly loss of 2.3 percent.


    Trump himself said on Thursday he did not plan to meet Chinese President Xi Jinping before a March 1 deadline set by the two countries to achieve a trade deal.

    Read more


    In Europe


    European stocks slipped again on Friday, following their weakest day in six weeks, as downgrades to growth forecasts weighed and bleak numbers from Umicore, Skanska, and Rockwool outweighed a sales beat at L’Oreal.


    The pan-European STOXX 600 was down 0.1 percent as of 1010 GMT, with most of the action at the level of individual stocks. The index was on track for its worst week in six.


    Markets were hit on Thursday by U.S. President Donald Trump saying he did not plan to meet Chinese President Xi Jinping before a March 1 deadline to achieve a trade deal.

    Growth worries in Europe also spiked after the European Commission downgraded its growth forecasts.


    The trade issue is more in focus in the short term. Macro data over the last few weeks hasn’t given any reason to be more concerned about a recession than a month or two ago,” said Paul Harper, equity strategist at DNB.


    The cycle is pretty mature now but it’s always pretty difficult to know how close to a recession you are when indications are not showing signs that it’s around the corner,” he added.


    Overall, Europe is on track for its weakest quarter for earnings growth in three years, but investors have been more forgiving to companies with valuations low and expectations at rock bottom.


    The question now is what can provide the catalyst for another leg up from here,” said DNB’s Harper. “At the moment earnings revisions are not particularly encouraging.”

    Read more


    In the United States


    The benchmark S&P 500 index and the Nasdaq edged upward to snap a two-day losing streak on Friday as positive corporate results offset lingering skepticism over the United States and China reaching a trade deal before the March 1 deadline.


    Electronic Arts and Motorola Solutions were among the top boosts to the S&P 500.


    Earlier, U.S. stocks dragged as trade concerns continued to weigh on investor sentiment. President Donald Trump said on Thursday he did not plan to meet Chinese President Xi Jinping before the deadline set for reaching an agreement.


    U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will travel to Beijing for principal-level meetings on Feb. 14-15, a statement from the White House said.


    As the session wore on, Wall Street’s major indexes regained lost ground. “What’s expected, based on the way the market has performed, is that there is a risk that we’ll see another round of tariff-hiking, but that risk will be overridden by some type of agreement,” said John Stoltzfus, chief investment strategist at Oppenheimer Asset Management in New York. “These are not indices that are showing extreme investor concern at this point.”


    The Dow Jones Industrial Average fell 63.2 points, or 0.25 percent, to 25,106.33, the S&P 500 gained 1.83 points, or 0.07 percent, to 2,707.88 and the Nasdaq Composite added 9.85 points, or 0.14 percent, to 7,298.20.


    For the week, the Dow added 0.17 percent, the S&P 500 rose 0.05 percent, and the Nasdaq gained 0.47 percent.


    The S&P 500 has risen more than 15 percent from 20-month lows in December, spurred by a dovish Federal Reserve and largely positive fourth-quarter earnings, as well as hopes for an eventual U.S.-China trade deal.


    Of the S&P 500 companies that have reported quarterly results, 71.5 percent have beaten profit estimates, according to IBES data from Refinitiv.


    The S&P 500 posted 20 new 52-week highs and two new lows; the Nasdaq Composite recorded 35 new highs and 37 new lows.


    Volume on U.S. exchanges was 6.83 billion shares, compared to the 7.46 billion average over the last 20 trading days.

    Read more


    Earnings Reports


    ASX reports due this week (via Comsec)

    US Reports due this week (via Earnings Whispers)


    Australian News


    The Reserve Bank has revised down its economic forecasts as expected, but the Australian dollar has plunged again after the central bank surprised the market with the scale of its revisions. Economists had long warned that the ongoing property market correction and sluggish consumer spending meant RBA growth forecasts were overly optimistic. 
    Read more


    Businesses undermine the Reserve Bank's hope of wage rises for workers. Work in the construction industry is drying up fast, and there is evidence over a million labourers and tradies are hurting, unable to secure higher pay. 
    Read more


    Revealed: Perth’s riskiest suburbs for real estate investment 
    Read more


    The current executives and boards of the nation's banks are not the right people to repair the financial industry's damaged culture, says Graeme Samuel, who is about to embark on a sweeping review of the banking watchdog in response to the royal commission. 
    Read more


    The Commonwealth Bank of Australia’s backflip on its longstanding Apple Pay boycott has paid off in spades, with more than half a million people flocking to the new payment service just two weeks after it was made publicly available to customers. The stampede of iPhone users is so big it has boosted the CBA’s total number of mobile banking by half, propelling the number from 1 million Android users to a total of 1.5 million total mobile numbers. 
    Read more


    Former NSW premier Mike Baird won't talk about running for the top job at NAB, but plenty of others are linking him with the role. Mr Baird on Friday refused to be drawn on speculation he was among the frontrunners to replace Andrew Thorburn, who has resigned after his leadership was criticised by royal commissioner Kenneth Hayne. 
    Read more


    NAB interim CEO Phil Chronican the right man for the job, investors say. The blood sport of the banking royal commission reached a crescendo with Kenneth Hayne ending the careers of two of the most high-profile bankers in the land; Ken Henry and Andrew Thorburn. 
    Read more


    Individual AMP executives may face criminal charges over the billion-dollar 'fees for no service' scandal, the company's lawyer has confirmed. The Australian Securities and Investment Commission (ASIC) is in the process of preparing cases against executives over the scandal, where customers were charged fees but not provided with a service. 
    Read more


    Australian thermal coal prices have fallen to their lowest since April 2018 as a slowdown in Chinese imports dents demand for the commodity. Spot cargo prices for Australian thermal coal exports from the port of Newcastle were last settled at $US95.75 per tonne, the lowest since a spike in April 2018 pushed prices above $US100 a tonne. 
    Read more


    new power project is transforming a closed underground mine and compressed air into a battery capable of providing instant electricity. Canadian technology company Hydrostor’s Advanced Compressed Air Energy Storage (A-CAES) project is the first of its kind in Australia and uses excess solar and wind power that would typically be wasted. 
    Read more


    Global News


    Growth Angst Infects Every Corner of the World and Bonds Love It
    Read more


    US bankruptcy court has approved billionaire Eddie Lampert's controversial $5.2bn (£4bn) takeover of troubled US retailer Sears. The plan, announced in January, could keep more than 400 stores open and preserve up to 45,000 jobs. 
    Read more


    Apple rolls out fix for FaceTime eavesdropping bug 
    Read more


    Apple needs a new retail strategy. The Apple Store is at a crossroads. Its CEO is stepping down, and the iPhone, its most important product, is in a major slump. That's bad news for Apple in the near-term -- but a major opportunity for the Apple Store to take on an even bigger role for the company. 
    Read more


    Sprint Corp sued AT&T Inc late on Thursday, saying it was misleading consumers into believing that they were using fifth generation or 5G wireless network, a technology that has not yet been widely deployed. 
    Read more


    Against the odds, Tesla's Model 3 became the best-selling luxury car in America 
    Read more


    Woody Allen has launched legal action against Amazon Studios, accusing it of breaching their contract by refusing to distribute his latest film. The 83-year-old is seeking more than $68m (£52m) in damages, alleging the company backed out of a multi-picture deal without cause. 
    Read more


    Igor Sechin, head of Russian oil giant Rosneft and one of Vladimir Putin’s closest allies, has written to the Russian president saying Moscow’s deal with OPEC to cut oil output is a strategic threat and plays into the hands of the United States. 
    Read more


    EU ambassadors have agreed to toughen regulations on a controversial gas pipeline from Russia to Germany, but they have decided not to back plans that might threaten its completion. Work on the 1,225km (760-mile) Nord Stream 2 pipeline under the Baltic Sea is set to end this year, but it has angered several EU countries. 
    Read more


    EU urges May to seize Labour opening as way out of Brexit impasse. It’s a proposal that is not even on the table, and reverses Theresa May’s determined position - but EU officials are still urging her to grasp an offer from the Labour opposition to break an impasse over the terms of Britain’s EU exit. 
    Read more


    Irish PM says Brexit deal can be done 
    Read more


    "Big six" energy giant SSE has seen a sharp drop in customer numbers and has cut its full-year earnings forecast. It said it had lost 160,000 customers in the final three months of last year, leaving it with 5.88 million accounts. 
    Read more


    Facebook built a massive advertising business on what it knows about its users. But could the company's enormous database soon become its biggest problem? The clearest warning yet came Thursday, when Germany's antitrust office ruled that Facebook was abusing its market position by combining its data with information from Instagram, WhatsApp and third party websites. 
    Read more


    Stock News


    Saturn Metals managing director shows confidence with on-market share purchase. Saturn Metals Ltd (ASX:STN) managing director Ian Bamborough has purchased 63,941 fully paid ordinary shares on-market. 
    Read more


    Indiana Resources Limited (ASX:IDA) has entered into a non-binding term sheet for a joint venture with Altus Strategies PLC (LON:ALS) (CVE:ALTS) covering exploration licences in the Mali Gold Belt of West Africa. The Lakanfla and Tabakarole gold projects are strategically located near Indiana's existing Mali exploration project. 
    Read more


    Inpex has win in $14m floating hotel bill case 
    Read more


    BHP’s bid to revitalise its Goldfields nickel business has hit a fresh milestone, with Nickel West set to start work this month to develop two new open pits to feed its Mt Keith operations. The mining giant has received its final approval from the Department of Mines, Industry Regulation and Safety to develop the deposits, 450km north of Kalgoorlie-Boulder. 
    Read more


    Cullen Resources Limited (ASX:CUL) hasidentified new gold anomalies from aircore drilling at the Mt Eureka project in WA's Northeast Goldfields. Assay data has been received and compiled from reconnaissance aircore drilling completed in November 2018.
    Read more


    South32 Ltd says Karen Wood has been elected as the next chair of its board of directors, replacing current chairman David Crawford who is retiring. 
    Read more


    landmark court decision to reject a proposed NSW coal mine on the basis of its expected greenhouse gas emissions could have far-reaching implications for future fossil fuel projects in Australia, environmentalists say. The chief judge of the NSW Land and Environment Court on Friday dismissed Gloucester Resources Ltd's appeal of the Department of Planning and Environment's 2017 decision to not approve the mine in the NSW Hunter. 
    Read more


    HRL Holdings Ltd (ASX:HRL) has posted revenue of $14.1 million and an underlying loss after tax of $138,806 for its Australian and New Zealand lab operations. The company has 10 lab locations and splits its revenue across HAZMAT services, geotechnical services, food and environmental lab services, and software service revenue. 
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    Recce Pharmaceuticals attracts $1.8 million as it moves toward human clinical trials 
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    Germany's second largest sugar refiner Nordzucker says it has agreed to purchase 70 per cent of Australia's Mackay Sugar Limited, giving it access to Australian and wider Southeast Asian markets. Nordzucker said in November it was in talks to buy Mackay as part of the German company's international expansion. 
    Read more


    Titomic Ltd (ASX:TTT) has executed an exclusive license agreement with CSIRO and an acquisition agreement with Future Titanium Technologies. The CSIRO agreement grants Titomic exclusive global rights to two patents for the production of pipe, as well as continuous pipe manufactured using titanium and titanium alloys. 
    Read more


    'We built something amazing': Aconex co-founder on life after a $1.6b sale. Rob Phillpot still has mixed emotions when he thinks about the sale of Aconex, the construction technology company he co-founded with a school friend, to US software giant Oracle. 
    Read more


    Please include the STOCK CODE in your post out of respect for your fellow traders, or use the OT tag for non-stock related content.


    Image uploading not working quite properly, fortunately the long way still working (uploading elsewhere then inserting from url), hope the post still comes out ok, it's already capricious at the best of times.

    That said, still a beaut of a day outside today.



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