Good morning traders. Thanks @ttward, @Ravgnome & the aftermarket loungers.
Well, if you can’t beat em, we as well join em eh HLL, who wants to see a ramp? My favourite stock, 007. Go long folks, hold tight there is great new around the corner, going up 1000%, definitely don’t sell, all intelligent and respectable people agree it is the best stock around, massively undervalued, entirely oversold, only weak hands selling, instos and pros are all over it. it might be down 90% today but it will to close green and then up 10x higher by weeks end. So, can I put you down for a few grand? And if that doesn’t move it, I’m going to mention it again every hour on the hour for the next 6 months till it does...
Sounds mad doesn’t it, And I’m not saying everyone that utters any of those words is just a filthy ramper, just that surely we can do better than what we have been doing. Just because a stock price has dropper massively does not make it “oversold”. Imo we see that one in particular thrown around far too much, there is such a thing as a stock performing badly and the SP reflecting that.
You’ve seen Oscar ask numerous times for some more analysis with your tips, and I get time can be of the essence, but if you have time write a one-sentence ramp, you have time you provide some short analysis as to why you think something is the case.
Let's get the ramping under control before 9lives has to come in and read the riot act again. Sorry to start off with a grumpy line, but I think some of it had to be said. And I'm not calling out anyone in particular for the record, just general comments of a sometimes frustrated reader of the thread.
Onto the news.
ASX Market Report
Australian shares have shot up as investors bet that weaker than expected economic figures means that the Royal Bank of Australia will likely cut interest rates this year.
The benchmark S&P/ASX200 index closed up 46.3 points, or 0.75 per cent, to 6,245.6 points at 1615 AEDT on Wednesday, while the broader All Ordinaries was up 45.4 points, or 0.72 per cent, at 6,326.8.
The Australian Bureau of Statistics announced on Wednesday that GDP had grown by only grew 0.2 per cent for the last quarter of 2018 and just by 2.3 per cent for the year.
"The fact that it was weaker than expected gave a bit more credence to those who are expecting a rate cut," said CommSec market analyst James Tao. That gave a boost to Australian equities while driving the local currency down.
The Aussie hit a two-month low on the news, buying 70.33 US cents at 1715 AEDT, from from 70.78 US cents on Tuesday.
A number of economists are now expecting interest rate cuts to 1 per cent this year, from 1.5 per cent, perhaps beginning as soon as May or June. "Our non consensus call for 50bp of #RBA rate cuts rapidly seems to be becoming a consensus view," tweeted economist Andrew Ticehurst with Rate Strategist. "It certainly is an interesting position that the RBA is in," Mr Tao said, noting the job market seemed resilient despite the economic slowdown.
Among the movers on the ASX on Wednesday was Bubs Australia, which rocketed up 24.17 per cent, to 74.5 cents, after announcing a marketing and distribution partnership with Chinese dairy producer Beingmate.
Myers was up 10.98 per cent, to 45.5 cents, after reporting that it had cut its debt by more than a third, to $95.4 million, and posted a $38.4 million first-half profit. Barring a catastrophe, it appears the department store is no longer in danger of breaching its covenants with lenders.
Every sector was up, led by mining, which gained 1.11 per cent. BHP gained 0.86 per cent, Rio Tinto was up 1.09 per cent and Fortescue Metals gained 1.69 per cent.
All four of the big banks were up, with Commonwealth leading the way, gaining 0.93 per cent.
Coles was flat at $11.38 after it said it would start selling goods through eBay.
Telco Telstra was up 0.63 per cent, pharma giant CSL was up 0.07 per cent and ex-dividend Brambles was flat at $11.86.
ON THE ASX:
* The benchmark S&P/ASX200 index was up 46.3 points, or 0.75 per cent, at 6,245.6 points at 1630 AEDT on Wednesday.
* The All Ordinaries was up 45.4 points, or 0.72 per cent, at 6,326.8.
* At 1630 AEDT, the SPI200 futures index was down two points, to 6245.
CURRENCY SNAPSHOT AT 1715 AEDT:
One Australian dollar buys:
* 70.33 US cents, from 70.78 US on Tuesday
* 78.63 Japanese yen, from 79.22
* 62.25 euro cents, from 62.48
* 53.54 British pence, from 53.78
* 104.02 NZ cents, from 104.16
GOLD:
The spot price of gold in Sydney at 1630 AEDT was $US1288.94 per fine ounce, from $US1288.22 on Tuesday.
In Asia
Chinese shares surged to a nine-month high on Wednesday bolstered by hopes of more stimulus measures from Beijing, but the rally failed to fuel broader gains in global markets as investors waited for fresh central bank cues.
Benchmark indexes in China rose between 1-2 percent after China’s state planner said the government would implement measures to further boost domestic consumption to counter the impact of a slowing economy.
Taking into account Wednesday’s gains, Shanghai Composite Index has now gained a quarter so far this year but is still down more than 13 percent from January 2018 as fears of a wider slowdown in the economy have dogged sentiment.
“China is outperforming today because of the stimulus plans and that is a localised phenomenon as other global markets are focused on central bank decisions and major economic data,” said Ricardo Evangelista, a senior analyst at ActivTrades in London.
Fresh signs of dovishness from other major central banks as China is moving to boost its economy and the U.S. Federal Reserve is signalling a pause in its rate hike cycle would boost equities and high-yielding debt, at a time when broader economic data has shown signs of flagging.
MSCI’s broadest index of Asia-Pacific shares outside Japan nudged up 0.1 percent. The positive news from China also rubbed off on emerging stocks with an index rising 0.2 percent.
However, more stimulus plans in China failed to lift the Australian currency, an asset that typically benefits from any positive news from Beijing, as data showed the economy slowed to a near standstill in the fourth quarter.
The Australian economy expanded just 0.2 percent in the fourth quarter, slower than the 0.3 percent increase economists had forecast in a Reuters poll fueling a selloff in the currency.
“The key domestic demand components were all weak and our economists suggest the door for rate cuts has opened further,” said Adam Cole, currency strategist at RBC Capital Markets.
In Europe
European shares stalled on Wednesday as weak results from the troubled autos sector dragged the market down and investors’ confidence in a rally that has sent stocks shooting up this year showed signs of fraying.
Exuberance in Chinese shares over hopes for fresh stimulus failed to spill over into European trading where the STOXX 600 hovered near five-month highs, flat on the day.
“The good news is China is now easing quite aggressively. The less good news is it takes time for credit easing impact the domestic and global economies,” said Nicholas Brooks, head of economic and investment research at Intermediate Capital Group.
“We think Europe will see growth pick up in the latter part of 2019 as China import demand stabilises and recent exceptional domestic factors weighing on Europe growth start to fade.”
In the United States
The S&P 500 has risen about 11 percent so far this year on optimism that the United States and China will soon end their bitter trade row and the Federal Reserve will be less aggressive in raising interest rates.
A strong start to the week after a report that the two sides would arrive at a trade deal as early as month-end fizzled out, mainly due to a lack of any further developments.
The S&P 500 is struggling to go past the 2,800-point mark, a key resistance level, closing lower in five of the past six sessions in choppy trading.
“There’s nothing specific, the market has gained so much in such a short period of time, it has priced in a lot of the positive outcomes related to trade,” said Aaron Clark, portfolio manager at GW&K Investment Management in Boston, MA.
“It has been a really good year for the S&P 500 and we all know that it will not continue at this pace as the risk/reward will be flat to down from here onwards, so I think its just profit taking.”
The healthcare sector was the biggest drag on the benchmark index, falling 1.6 percent. Shares of big pharma and biotech companies took a hit, a day after U.S. FDA Commissioner Scott Gottlieb resigned from his post in a surprise move..
At 13:01 p.m. ET the Dow Jones Industrial Average was down 146.64 points, or 0.57 percent, at 25,659.99. The S&P 500 was down 17.60 points, or 0.63 percent, at 2,772.05 and the Nasdaq Composite was down 61.56 points, or 0.81 percent, at 7,514.80.
Declining issues outnumbered advancers for a 2.94-to-1 ratio on the NYSE and for a 3.24-to-1 ratio on the Nasdaq.
The S&P index recorded 13 new 52-week highs and five new lows, while the Nasdaq recorded 17 new highs and 25 new lows.
Australian News
The Australian dollar fell to a three-month low but the sharemarket climbed to a six-month high as yield hunters dived into high-paying dividend stocks as a sharp deceleration in GDP growth sent rate-rise expectations soaring.
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Australia's economy just entered recession on a per capita basis
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Prime Minister Scott Morrison says the Australian economy faces "real challenges" due to global factors after growth slowed down in the final months of 2018. The economy grew by 0.2 per cent in seasonally adjusted terms in the three months to December and by 2.3 per cent in the year to December, according to the latest national accounts released by the Australian Bureau of Statistics on Wednesday.
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Federal Treasury scolds Coalition for exaggerating impact of Labor's proposed negative gearing overhaul
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High defaults in residential mortgages backing securitised bonds sold by Australia's Suncorp Group have triggered a clause that limits principal repayments for some investors, the manager of the bonds has told investors. The unusual trigger is the earliest signal of the impact that Australia's sharpest property downturn in a generation is having on the country's $1.8 trillion mortgage pool.
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The Reserve Bank is maintaining it is the supply of and demand for housing that has accounted for most of the recent large swings in home prices, rather than the availability or cost of home loans. The bank also remains deeply concerned about the low level of wages growth, saying that is more likely to be damaging consumer spending and the economy than falling home values.
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Time to stop name calling and start cultivating seeds of change in density debate. We’ve all heard about the NIMBYs, those who claim to support increased density, just Not In My BackYard, street or sometimes even suburb. Now, the latest acronym is a corker. Welcome BANANAs — Build Absolutely Nothing Anywhere Near Anyone.
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The next chairman of National Australia Bank, Phil Chronican, has vowed to unleash "meaningful" change at the bank, after being appointed to replace Ken Henry. Mr Chronican was appointed as the next chairman at a board meeting on Wednesday, following a period of leadership turmoil triggered by the shock resignations of former CEO Andrew Thorburn and Dr Henry last month in the wake of a tough criticism from the royal commission.
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Westpac axes bonuses for tellers in push to regain trust
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Australia's iron ore queen Gina Rinehart has maintained her spot in an elite list of the world's top 100 billionaires. But she slipped down the ranks to number 75 in 2019, from 69 last year, although her current and depleted fortune of $US15.2 billion ($A21.5b) is nothing to sneeze at.
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Copper rises as China promises tax cuts
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Global News
The U.S. trade deficit surged to a 10-year high in 2018, with the politically sensitive shortfall with China hitting a record peak, despite the Trump administration slapping tariffs on a range of imported goods in an effort to shrink the gap.
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Trade tensions are easing. But the US crackdown on Huawei is just beginning. The United States and China could soon reach a deal on trade. But the US government's prosecution of Huawei, one of China's most important tech companies, is just getting started — leaving open the possibility of another flare-up between the world's two largest economies.
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ETF trading on the blockchain signals where digital currencies could be headed
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The demonstration mission of SpaceX's new Crew Dragon capsule successfully docked Sunday on the International Space Station, passing a key test before it can begin taking US astronauts into space. The docking of the capsule, which has only a dummy on board, was concluded at 1051 GMT, nearly 250 miles (400 kilometers) over the surface of the Earth, NASA and SpaceX confirmed during a live broadcast of the mission.
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Chinese Tesla rival Nio warns of weak SUV demand and scraps factory plans
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Sony made $250 million bet on Michael Jackson music library before ‘Leaving Neverland’ documentary.
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Cannabis stocks fell across the board Wednesday, as investors weighed the surprise news that the head of the U.S. Food and Drug Administration has resigned, leaving the fate of the cannabis ingredient CBD in regulatory limbo. Commissioner Scott Gottlieb, known for his efforts to stem teen vaping, will step down next month after two years in the role.
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A disorderly Brexit remains the biggest risk to Britain’s financial system but it still looks unlikely and British banks are well prepared, Bank of England Deputy Governor Jon Cunliffe said on Wednesday. Britain’s central bank has long warned banks to prepare for Britain leaving the European Union on March 29 without any form of transition deal, to minimise the risk of disruption to markets and households.
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The UK government may cut trade tariffs on between 80% and 90% of goods in the event of a no-deal Brexit, reports say. Some tariffs would be scrapped completely, including those on car parts, and some agricultural produce.
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China's legislature will vote next week on a highly-anticipated bill that will bring "a fundamental change" for foreign investors, an official said Monday, in a move that could help ease US trade tensions. The draft foreign investment law will be the most closely watched item at the annual two-week session of the rubber-stamp National People's Congress, which opens on Tuesday.
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Chinese telecom giant Huawei will give foreign media a peek into its headquarters Wednesday as the normally secretive company steps up a counter-offensive against US warnings that it could be used by Beijing for espionage and sabotage.
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Stock News
Newly appointed Capricorn Metals boss Warren Hallam has left the aspiring gold miner less than a month after joining, following a shareholder vote yesterday that replaced all but one of the company’s board members. Mr Hallam was followed out the door by the company’s chief financial officer Jonathan Shellabear.
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Woodside is promoting the LNG market’s move to smaller, shorter and more flexible contracts by backing two Perth trading start-ups. Woodside chief executive Peter Coleman told an LNG conference in Singapore today that the trend for LNG to be sold to large portfolio players such as Shell, ExxonMobil and BP had helped projects get sanctioned but could shut smaller buyers out of the market.
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Myer shares are soaring after the department store chain cut its debt by a third and posted a $38.4 million first-half profit. The department store still has $95.4 million in debt but, barring an unforeseen disaster, it appears Myer is no longer in danger of breaching its covenants with lenders.
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Coles has become the first supermarket anywhere to sell directly on eBay. The Australian supermarket giant's shopfront with the e-commerce behometh launched on Wednesday with a range of more than 4,000 products across categories including fresh food, personal care and household goods.
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Bubs shares have surged after the goat milk formula maker announced a marketing and distribution partnership with Chinese dairy producer Beingmate that it hopes will expand its reach in the country.
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Just when you think you’ve seen it all, waffle burgers.
Also Cleo’s Manchester Untied playing today in the Champions League, watch and give them a cheer if you are bored.
