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Sell-off is prime time for buying

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Original article by Jessica Sier, Vanessa Desloires
The Australian Financial Review – Page: 29 : 29-Jun-16

Shares in British and Irish banks have fallen sharply in the wake of the "Brexit" referendum, but Platinum Asset Management’s Clay Smolinski says this has created a buying opportunity for investors. Meanwhile, Aurora Funds Management’s Hugh Dive says the fallout from the UK’s vote to leave the European Union should have little impact on the Australian sharemarket and the nation’s four major banks. He notes that the local banks have less reliance on wholesale funding from Europe than during the global financial crisis.

CORPORATES
PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, AURORA FUNDS MANAGEMENT LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BANK OF IRELAND PLC, BARCLAYS BANK PLC, ROYAL BANK OF SCOTLAND GROUP PLC, EUROPEAN CENTRAL BANK, MOODY’S INVESTORS SERVICE INCORPORATED

Europe aftershocks set to rattle the globe

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Original article by Mark Mulligan
The Australian Financial Review – Page: 22 : 24-Jun-16

Futures traders expect Australia’s benchmark S&P/ASX 200 to be flat or rise slightly when trading resumes on 27 June 2016. However, European sharemarkets and the British pound could be further sold down in the next week, in the wake of the UK’s vote to leave the European Union. Meanwhile, Paul Bloxham of HSBC expects the Reserve Bank of Australia to leave the cash rate on hold in July, noting that low inflation remains the central bank’s focus.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, RESERVE BANK OF AUSTRALIA, HSBC AUSTRALIA HOLDINGS PTY LTD, BANK OF ENGLAND, EUROPEAN CENTRAL BANK, JP MORGAN AND COMPANY INCORPORATED, LOMBARD STREET RESEARCH LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, GREAT BRITAIN. OFFICE OF THE PRIME MINISTER

Recession in Europe a ‘very scary’ prospect

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Original article by Vesna Poljak, James Chessell, James Thomson
The Australian Financial Review – Page: 15 & 20 : 27-Jun-16

Opinion is divided regarding the likely impact of the UK’s vote to leave the European Union. Financial markets were sold down in the wake of the "Brexit" referendum, and Wilson Asset Management chairman Geoff Wilson warns of the potential for another financial crisis. However, Randal Jenneke of T Rowe Price does not expect Brexit to lead to an economic crisis, arguing that it is a political issue and a political crisis. Meanwhile, Investors Mutual’s Anton Tagliaferro says Brexit will have no impact on the majority of Australian-listed companies.

CORPORATES
WILSON ASSET MANAGEMENT, T ROWE PRICE GROUP INCORPORATED, INVESTORS MUTUAL LIMITED, FTSE 100 INDEX, METAGE CAPITAL GLOBAL VALUE FUND, UNICREDIT SPA, BANCO POPOLARE, BANK OF IRELAND PLC, GREAT BRITAIN. OFFICE OF THE PRIME MINISTER, EUROPEAN COMMISSION

It’s a big short-term buying opportunity

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Original article by Jessica Sier
The Australian Financial Review – Page: 29 : 24-Jun-16

Charles de Bolssezon of Societe Generale forecasts that the FTSE 100 will rally in coming months if the UK votes to remain in the European Union. However, the FTSE is tipped to shed about 15 per cent if Britons vote to leave the EU, while the S&P 500 will fall by 10 per cent. Richard Coppleson of Bell Potter says Australia’s benchmark S&P/ASX 200 would also fall sharply in the event of a "Brexit", but he adds that this would create buying opportunities for investors in the short-term.

CORPORATES
SOCIETE GENERALE SA, FTSE 100 INDEX, STANDARD AND POOR’S 500 INDEX, BELL POTTER SECURITIES LIMITED, STANDARD AND POOR’S ASX 200 INDEX, EURO STOXX 50 INDEX, FTSE 250 INDEX, NIKKEI 225 INDEX, CITIGROUP INCORPORATED, BANK OF ENGLAND, UNITED STATES. FEDERAL RESERVE BOARD

ASX rallies on signs of a shift in UK polls

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 30 : 21-Jun-16

The Australian sharemarket posted strong gains on 20 June 2016, with the S&P/ASX 200 adding 1.8 per cent to close at 5,256. Asian markets also rose in response to a poll which found that support is growing among British voters to remain in the European Union. Commonwealth Bank was three per cent higher at $A74.20 and BHP Billiton was up 4.4 per cent at $A18.87. However, Northern Star Resources was down 3.5 per cent at $A4.66 and Metcash shed 12.5 per cent to end the session at $A1.86.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, NORTHERN STAR RESOURCES LIMITED – ASX NST, METCASH LIMITED – ASX MTS, RIO TINTO LIMITED – ASX RIO, WOODSIDE PETROLEUM LIMITED – ASX WPL, ORIGIN ENERGY LIMITED – ASX ORG, SANTOS LIMITED – ASX STO, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, TELSTRA CORPORATION LIMITED – ASX TLS, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, EVOLUTION MINING LIMITED – ASX EVN, REGIS RESOURCES LIMITED – ASX RRL, MESOBLAST LIMITED – ASX MSB, HENDERSON GROUP PLC – ASX HGG, CYBG PLC – ASX CYB, CSL LIMITED – ASX CSL, COCHLEAR LIMITED – ASX COH, PATERSONS SECURITIES LIMITED, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, HANG SENG INDEX, NIKKEI 225 INDEX

Markets skittish as Brexit vote looms

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Original article by Jessica Sier
The Australian Financial Review – Page: 22 : 20-Jun-16

The UK’s referendum on membership of the European Union is expected to be a key focus for Australian investors in the week beginning 20 June 2016. However, Alex Holmes of Capital Economics says the global economy is unlikely to be significantly affected in the long-term if the UK votes to leave the EU. Investors will also be awaiting the release of the minutes from the Reserve Bank of Australia’s latest board meeting, as well as US economic data such as unemployment claims and oil inventories.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CAPITAL ECONOMICS LIMITED, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. SENATE COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS, UNITED STATES. HOUSE OF REPRESENTATIVES COMMITTEE ON FINANCIAL SERVICES, RESERVE BANK OF INDIA, INDIA. PRIME MINISTER’S OFFICE

Early rally fades but Brexit fears remain

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 28 : 17-Jun-16

The S&P/ASX200 index closed 0.02 per cent lower at 5,146.0 on 16 June 2016. It seems that investors are preoccupied with the possibility of Great Britain leaving the European Union. A referendum on the issue will be held on 23 June 2016. Crown Resorts’ demerger plans were welcomed by investors who pushed the stock up by 13.2 per cent to $A12.75. Gold stocks performed well, with Newcrest Mining gaining 2.9 per cent to $A22.54, Evolution Mining rising 4.7 per cent to $A2.43, and Northern Star Resources climbing 5.1 per cent to $A5.09.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CROWN RESORTS LIMITED – ASX CWN, NEWCREST MINING LIMITED – ASX NCM, EVOLUTION MINING LIMITED – ASX EVN, NORTHERN STAR RESOURCES LIMITED – ASX NST, BANK OF JAPAN, RIO TINTO LIMITED – ASX RIO, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BHP BILLITON LIMITED – ASX BHP, UNITED STATES. FEDERAL RESERVE BOARD, MELCO CROWN ENTERTAINMENT LIMITED

Stocks most at risk if Britain leaves the EU

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Original article by Jessica Sier
The Australian Financial Review – Page: 27 : 16-Jun-16

Australian-listed companies that derive some of their earnings in the British pound may be affected if the UK opts to exit the European Union. Henderson Group has already been heavily sold down in the lead-up to the referendum, while other stocks that could potentially fall include CYBG and Westfield Corporation. However, Paul Taylor of Fidelity says a "Brexit" would result in a global sell-off, rather than the targeting of individual stocks.

CORPORATES
HENDERSON GROUP PLC – ASX HGG, CYBG PLC – ASX CYB, WESTFIELD CORPORATION – ASX WFD, COMPUTERSHARE LIMITED – ASX CPU, IRESS LIMITED – ASX IRE, FIDELITY INVESTMENTS AUSTRALIA LIMITED, CLYDESDALE BANK PLC, YORKSHIRE BANK PLC, UBS HOLDINGS PTY LTD

Shares could tumble back through 5000 barrier, charts suggest

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 26 : 16-Jun-16

The Australian sharemarket has shed around four per cent since reaching 5,400 points in late May 2016, and technical analysis suggests that the S&P/ASX 200 could test the 5,000-point level. Angela Mangan of QMG says 5,300 was the benchmark index’s most recent technical support level. Angus Nicholson of IG Markets says 5,000 will become the next technical support level if the index falls below 5,200, and he notes the psychological importance of the 5,000-point level to investors.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, QMG PTY LTD, IG MARKETS LIMITED, DOW JONES INDUSTRIAL AVERAGE INDEX, FTSE 100 INDEX, EURO STOXX 50 INDEX, DEUTSCHER AKTIEN INDEX, CAC 40 INDEX

Terrorism no longer phases investors

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Original article by John Kehoe
The Australian Financial Review – Page: 12 : 15-Jun-16

The Dow Jones Industrial Average fell 7.1 per cent when trading resumed following the 11 September 2001 terrorist attacks in the US. However, the Dow Jones shed just 0.74 per cent after 50 people were killed in a nightclub in Orlando. Likewise, the CAC 40 shed just 0.1 per cent following the Paris terrorist attacks in November 2015 and the Brussels attacks in March 2016 had little impact on global sharemarkets. Analysis also suggests that terrorist attacks generally do not have much economic impact over the long-term.

CORPORATES
DOW JONES INDUSTRIAL AVERAGE INDEX, CAC 40 INDEX, STANDARD AND POOR’S 500 INDEX, IBEX 35 INDEX, FTSE 100 INDEX, CHARLES SCHWAB AND COMPANY, UNIVERSITY OF ALABAMA