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The Morning Report is updated each weekday morning and is freely available to all site visitors. It provides a brief snapshot of both overnight global financial markets and the local share market from the previous day, including top 5 and bottom 5 movers, open corporate actions, and upcoming dividends. Also provided are quotes on indices, commodities and currencies, plus an Economic Diary.

05.07.2022

The Morning Report

Overnight global markets, Aussie market wrap, and research updates


Tuesday 05/07/2022

OVERNIGHT GLOBAL MARKET WRAP

US markets were closed yesterday in accordance with the Independence Day holiday. The US 10-year treasury remained flat at 2.88%, while the USD Index remained unchanged at 105.13.

China: The PMI services index is expected to come in at 49.1 for June, up from 41.4 in the prior month.

UK: The PMI composite index is expected to come in at 53.1 for June, unchanged from May,

Germany: The trade balance came in at a €0.5B surplus for May, down from a €1.3B surplus in April, against expectations of a €1.2B surplus.

LOCAL MARKET WRAP

The ASX 200 rose 73pts yesterday to close 1.1% higher at 6,613, with the Energy sector the strongest performer (2.6%). The SPI Futures Index are trading 1pt higher this morning at 6,568. The 10-year treasury yield fell 4bps to 3.56% and the AUDUSD rose 0.7% to 0.6865 this morning.

Link Administration Holdings Limited (LNK) revealed yesterday its Board would not be able to recommend Dye & Durham’s revised $4.30 per share offer for control of the company. Dye & Durham reduced its offer price down from $5.50 per share to reflect a potential undertaking with the ACCC to obtain its approval, as well as changes in market valuations of PEXA, Link and the broader market. LNK will continue to engage with Dye & Durham as to whether an agreement can be reached. LNK has postponed its Special General Meeting from 13 July to a date yet to be determined. LNK shares fell 0.26% to close at $3.79.

Suncorp Group Limited (SUN) provided an update yesterday in relation to the weather events impacting NSW and parts of South-East Queensland. CEO Steve Johnston said that the group had dealt with 35 separate events and over 120,000 natural hazard claims across FY22 at an expected cost of approximately $1.1 billion. With this being inline with previous guidance figures. Looking ahead, SUN said that it expects its FY23 natural hazard allowance to increase to $1,160 million, reflective of the changes to the reinsurance program and the FY22 hazard experience. SUN shares rose 0.73% to close at $11.02.

The Australian cash rate is expected to be raised 50bps to 1.35% in today’s July meeting, up from the current rate of 0.85%. This follows a 50bp increase to the cash rate in the June meeting, as pressure increased on the RBA to return inflation to within the targeted range.

 

ASX 200 TOP MOVERS

Company Name Close Price Change (%)
Imugene Limited (IMU) $0.22 12.8
New Hope Corporation Limited (NHC) $3.60 7.8
Ingenia Communities Group (INA) $4.16 5.3
Block Inc. (SQ2) $95.52 5.1
Breville Group Limited (BRG) $19.05 5.1

ASX 200 BOTTOM MOVERS

Company Name Close Price Change (%)
Magellan Financial Group Limited (MFG) $11.71 -9.9
Pointsbet Holdings Limited (PBH) $2.70 -6.2
Lake Resources NL (LKE) $0.73 -3.3
Perpetual Limited (PPT) $28.31 -3.2
Pendal Group Limited (PDL) $4.37 -2.5

ECONOMIC DIARY

Country Event Date AEST
Australia ANZ/Roy Morgan Consumer Confidence 18/12/2018 09:30
Germany Ifo Survey 18/12/2018 20:00
United States Housing Starts 19/12/2018 00:30
Australia Westpac/MI Leading Index 19/12/2018 10:30
Australia Skilled Vacancies 19/12/2018 11:00
Germany PPI 19/12/2018 18:00
United Kingdom PPI 19/12/2018 20:30
United Kingdom CPI 19/12/2018 20:30

OPEN ASX 200 CORPORATE ACTIONS

NameCODEEVENTLonsec RecommendationCLOSING DATE
Link Administration Holdings LtdLNKScheme of ArrangmenetSee CA Journal13/07/2022
carsales.com LtdCAREntitlement OfferSee CA Journal13/07/2022
WBC Capital NotesWBCPEReinvestment OfferSee CA Journal14/07/2022

Members can view the latest Corporate Action Journal in the "Latest Research" section for details on Lonsec's recommendations on these corporate actions.

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