{"id":82315,"date":"2019-09-03T08:49:58","date_gmt":"2019-09-02T22:49:58","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=82315"},"modified":"2019-09-03T10:19:13","modified_gmt":"2019-09-03T00:19:13","slug":"the-overnight-report-all-quiet-8","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2019\/09\/03\/the-overnight-report-all-quiet-8\/","title":{"rendered":"The Overnight Report: All Quiet"},"content":{"rendered":"\n\n\n\n\n\n\n\n\n\n\n\n\n
World Overnight<\/strong><\/span><\/td>\n<\/tr>\n
SPI Overnight (Sep)<\/strong><\/span><\/td>\n6537.00<\/strong><\/span><\/td>\n– 15.00<\/strong><\/span><\/td>\n– 0.23%<\/strong><\/span><\/td>\n<\/tr>\n
S&P ASX 200<\/strong><\/span><\/td>\n6579.40<\/strong><\/span><\/td>\n– 24.80<\/strong><\/span><\/td>\n– 0.38%<\/strong><\/span><\/td>\n<\/tr>\n
S&P500<\/strong><\/span><\/td>\n2926.46<\/strong><\/span><\/td>\n+ 1.88<\/strong><\/span><\/td>\n0.06%<\/strong><\/span><\/td>\n<\/tr>\n
Nasdaq Comp<\/strong><\/span><\/td>\n7962.88<\/strong><\/span><\/td>\n– 10.51<\/strong><\/span><\/td>\n– 0.13%<\/strong><\/span><\/td>\n<\/tr>\n
DJIA<\/strong><\/span><\/td>\n26403.28<\/strong><\/span><\/td>\n+ 367.18<\/strong><\/span><\/td>\n1.41%<\/strong><\/span><\/td>\n<\/tr>\n
S&P500 VIX<\/strong><\/span><\/td>\n18.98<\/strong><\/span><\/td>\n+ 1.10<\/strong><\/span><\/td>\n6.15%<\/strong><\/span><\/td>\n<\/tr>\n
US 10-year yield<\/strong><\/span><\/td>\n1.51<\/strong><\/span><\/td>\n– 0.01<\/strong><\/span><\/td>\n– 0.66%<\/strong><\/span><\/td>\n<\/tr>\n
USD Index<\/strong><\/span><\/td>\n99.04<\/strong><\/span><\/td>\n+ 0.12<\/strong><\/span><\/td>\n0.12%<\/strong><\/span><\/td>\n<\/tr>\n
FTSE100<\/strong><\/span><\/td>\n7281.94<\/strong><\/span><\/td>\n+ 74.76<\/strong><\/span><\/td>\n1.04%<\/strong><\/span><\/td>\n<\/tr>\n
DAX30<\/strong><\/span><\/td>\n11953.78<\/strong><\/span><\/td>\n+ 14.50<\/strong><\/span><\/td>\n0.12%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

By Greg Peel<\/p>\n

Unsurprising<\/u><\/p>\n

After rising almost 100 points on Friday to end the month of August and result season, the ASX200 unsurprisingly eased off yesterday to start the new month. We must also take into account that each day now will begin with a points handicap as we work through ex-dividends during the month.<\/p>\n

Fortescue Metals ((FMG)) made the big hand-out yesterday but that didn't stop materials being the only sector to finish in the green (+0.4%), other than a slight tick up for utilities. It was all about the nickel price, of course, which had jumped 11% overnight on news of Indonesian export bans.<\/p>\n

Western Areas ((WSA)) dutifully jumped 14.1% yesterday and Independence Group ((IGO)) 10.3%.<\/p>\n

Those two stocks led the index leaders, but for Speedcast International ((SDA)), which did a bit of a Phoenix in rebounding 24%.<\/p>\n

Otherwise, all other sectors gave back some of Friday's surge. Telcos (-1.3%) was the worst performer after Telstra ((TLS)) suggested the NBN headwind it hoped would abate in FY20 will probably now last until FY21.<\/p>\n

Among the individual losers, Nearmap ((NEA)) fell -6.6% for reasons unclear while Incitec Pivot ((IPL)) issued a drought-related profit warning and fell -4.4%.<\/p>\n

More informative on the day were various economic data releases.<\/p>\n

Australian company profits rose 4.5% in the June quarter, after rising 2.6% in March. The "two-speed" economy is nevertheless upon us again, with mining rising 11% and 32% year on year while non-mining rose 0.3% for 1.5%.<\/p>\n

ANZ's job ad series showed a -2.8% fall in August, for a year on year decline of -11.2%. Ad numbers had risen in June and July but the ANZ economists had suspected this was just a post-election blip, while a sharp downturn in building construction should be making its mark. The outlook for the labour market, says ANZ, is softening.<\/p>\n

Look out for an RBA rate cut next month, if not today.<\/p>\n

Caixin's take on China's manufacturing PMI rose to 50.4 from 49.9 in contrast to Beijing's numbers.<\/p>\n

Commodities<\/u><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Spot Metals,Minerals & Energy Futures<\/strong><\/span><\/td>\n<\/tr>\n
Gold (oz)<\/strong><\/span><\/td>\n1528.50<\/strong><\/span><\/td>\n+ 8.90<\/strong><\/span><\/td>\n0.59%<\/strong><\/span><\/td>\n<\/tr>\n
Silver (oz)<\/strong><\/span><\/td>\n18.43<\/strong><\/span><\/td>\n+ 0.09<\/strong><\/span><\/td>\n0.49%<\/strong><\/span><\/td>\n<\/tr>\n
Copper (lb)<\/strong><\/span><\/td>\n2.56<\/strong><\/span><\/td>\n– 0.01<\/strong><\/span><\/td>\n– 0.42%<\/strong><\/span><\/td>\n<\/tr>\n
Aluminium (lb)<\/strong><\/span><\/td>\n0.78<\/strong><\/span><\/td>\n– 0.00<\/strong><\/span><\/td>\n– 0.27%<\/strong><\/span><\/td>\n<\/tr>\n
Lead (lb)<\/strong><\/span><\/td>\n0.92<\/strong><\/span><\/td>\n– 0.00<\/strong><\/span><\/td>\n– 0.12%<\/strong><\/span><\/td>\n<\/tr>\n
Nickel (lb)<\/strong><\/span><\/td>\n8.20<\/strong><\/span><\/td>\n+ 0.07<\/strong><\/span><\/td>\n0.91%<\/strong><\/span><\/td>\n<\/tr>\n
Zinc (lb)<\/strong><\/span><\/td>\n1.02<\/strong><\/span><\/td>\n+ 0.01<\/strong><\/span><\/td>\n0.70%<\/strong><\/span><\/td>\n<\/tr>\n
West Texas Crude <\/strong><\/span><\/td>\n54.77<\/strong><\/span><\/td>\n– 0.33<\/strong><\/span><\/td>\n– 0.60%<\/strong><\/span><\/td>\n<\/tr>\n
Brent Crude<\/strong><\/span><\/td>\n58.66<\/strong><\/span><\/td>\n– 0.59<\/strong><\/span><\/td>\n– 1.00%<\/strong><\/span><\/td>\n<\/tr>\n
Iron Ore (t) futures<\/strong><\/span><\/td>\n91.15<\/strong><\/span><\/td>\n+ 5.30<\/strong><\/span><\/td>\n6.17%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Beijing was talking up the stimulus yesterday as the tit-for-tat round of tariffs came into effect. The State Council's financial stability and development committee described risks to the economy as manageable and said the state wanted to keep "reasonably ample" liquidity as it faced the brunt of the trade war.<\/p>\n

Such talk has proven a boon for the iron ore price, which has reignited after coming off around -30% in recent weeks.<\/p>\n

Nickel was again marginally stronger.<\/p>\n

The US dollar index has cracked 99 with a 0.1% gain, sending the Aussie down -0.2% to US$0.6714. En route for 66.<\/p>\n

Today<\/u><\/p>\n

Hurricane Dorian has smashed the Bahamas and is set to hit the US Atlantic coast. Wall Street has become used to such disasters and now anticipates a typical drop in economic activity followed by a recovery in the rebuilding phase, if that's what it comes to. Wall Street reopens tonight, with the August manufacturing PMI in the frame.<\/p>\n

Locally we'll see the June quarter current account numbers today, including the terms of trade, which no doubt will be somewhat spectacular.<\/p>\n

The RBA is expected to hold fast today but the market will be looking for clues.<\/p>\n

We'll also see July retail sales figures.<\/p>\n

Eighteen stocks go ex-div today, including Woolworths ((WOW)).<\/p>\n

The Australian share market over the past thirty days…<\/strong><\/p>\n

<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS<\/span><\/td>\n<\/tr>\n
ALX<\/td>\nATLAS ARTERIA<\/td>\nDowngrade to Neutral from Outperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
AOG<\/td>\nAVEO<\/td>\nDowngrade to Hold from Accumulate<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
APX<\/td>\nAPPEN<\/td>\nUpgrade to Buy from Neutral<\/td>\nUBS<\/td>\n<\/tr>\n
ASG<\/td>\nAUTOSPORTS GROUP<\/td>\nUpgrade to Outperform from Neutral<\/td>\nMacquarie<\/td>\n<\/tr>\n
AVG<\/td>\nAUST VINTAGE<\/td>\nDowngrade to Hold from Add<\/td>\nMorgans<\/td>\n<\/tr>\n
CAJ<\/td>\nCAPITOL HEALTH<\/td>\nDowngrade to Hold from Buy<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
CTX<\/td>\nCALTEX AUSTRALIA<\/td>\nDowngrade to Neutral from Outperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
FPH<\/td>\nFISHER & PAYKEL HEALTHCARE<\/td>\nUpgrade to Neutral from Underperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
GTN<\/td>\nGTN LTD<\/td>\nDowngrade to Neutral from Outperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
HVN<\/td>\nHARVEY NORMAN HOLDINGS<\/td>\nDowngrade to Lighten from Hold<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
IGO<\/td>\nINDEPENDENCE GROUP<\/td>\nDowngrade to Sell from Neutral<\/td>\nCiti<\/td>\n<\/tr>\n
LNK<\/td>\nLINK ADMINISTRATION<\/td>\nUpgrade to Buy from Neutral<\/td>\nCiti<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nDowngrade to Neutral from Outperform<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
MLX<\/td>\nMETALS X<\/td>\nDowngrade to Neutral from Outperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
MQG<\/td>\nMACQUARIE GROUP<\/td>\nUpgrade to Accumulate from Hold<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
MWY<\/td>\nMIDWAY<\/td>\nDowngrade to Hold from Add<\/td>\nMorgans<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nDowngrade to Hold from Buy<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
NSR<\/td>\nNATIONAL STORAGE<\/td>\nDowngrade to Hold from Accumulate<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
NXT<\/td>\nNEXTDC<\/td>\nUpgrade to Outperform from Neutral<\/td>\nMacquarie<\/td>\n<\/tr>\n
OZL<\/td>\nOZ MINERALS<\/td>\nUpgrade to Neutral from Underperform<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
PRU<\/td>\nPERSEUS MINING<\/td>\nDowngrade to Neutral from Buy<\/td>\nCiti<\/td>\n<\/tr>\n
REH<\/td>\nREECE AUSTRALIA<\/td>\nDowngrade to Neutral from Buy<\/td>\nCiti<\/td>\n<\/tr>\n
SGF<\/td>\nSG FLEET<\/td>\nDowngrade to Neutral from Outperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
VAH<\/td>\nVIRGIN AUSTRALIA<\/td>\nDowngrade to Underperform from Neutral<\/td>\nCredit Suisse<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

For more detail go to FNArena's Australian Broker Call Report<\/a>, which is updated each morning, Mon-Fri.<\/p>\n

All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available on the FNArena website.  Click here<\/a>. (Subscribers can access prices on the website.)<\/em><\/p>\n

(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author's and not by association FNArena's – see disclaimer on the website)<\/strong><\/em><\/p>\n

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FNArena is proud about its track record and past achievements: Ten Years On<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The local market eased off yesterday after an end of month surge. Wall Street was closed.<\/p>\n","protected":false},"author":8,"featured_media":82324,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[84],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/82315"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=82315"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/82315\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media\/82324"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=82315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=82315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=82315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}