K: Financial and Insurance Services

ASX enjoys sweet end to sour financial year

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Original article by Jessica Sier
The Australian Financial Review – Page: 29 : 1-Jul-16

The Australian sharemarket posted solid gains on 30 June 2016, with the S&P/ASX 200 adding 1.8 per cent to end the financial year at 5,233.4. The Commonwealth Bank was 1.2 per cent higher at $A74.37 and BHP Billiton advanced 1.9 per cent to end the session at $A18.65. Woodside Petroleum rose 2.8 per cent to close at $A26.84 and Mayne Pharma was up 35.1 per cent at $A1.09. The benchmark index shed 4.1 per cent in 2015-16.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, WOODSIDE PETROLEUM LIMITED – ASX WPL, MAYNE PHARMA GROUP LIMITED – ASX MYX, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, NEWCREST MINING LIMITED – ASX NCM, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, TELSTRA CORPORATION LIMITED – ASX TLS, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, PM CAPITAL LIMITED, PERPETUAL INVESTMENTS, RESERVE BANK OF AUSTRALIA, COLES SUPERMARKETS AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, FTSE 100 INDEX, FTSE 250 INDEX

ANZ-Roy Morgan Australian Consumer Confidence remains upbeat despite ‘Brexit’ jitters – now at 116.8

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 28-Jun-16

ANZ-Roy Morgan Australian Consumer Confidence fell 1.9 per cent to 116.8 in the week ending 26 June 2016, only partially offsetting the rise the previous week. Despite the turmoil in global financial markets – driven by the surprise result in the UK referendum – households remain optimistic about their finances and the economic outlook. Last week’s easing in confidence was largely driven by a deterioration in consumers’ views towards the economic outlook. The indicator on "finances compared to a year ago" fell 2.3 per cent, and views towards "economic conditions in the next 12 months" fell nine per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Brexit may prompt RBA to lean towards cash-rate cut

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 6 : 29-Jun-16

Financial markets have priced in a 24 per cent chance that the Reserve Bank of Australia will reduce the cash rate in July 2016, compared with just 12 per cent prior to the "Brexit" referendum. However, the odds of a rate cut in August have increased from 44 per cent to 76 per cent since the UK voted to leave the European Union. Some economists expect the RBA to leave rates on hold in July but adopt an easing bias in its monetary policy statement. The central bank has not had an easing bias since the last rate cut in May.

CORPORATES
RESERVE BANK OF AUSTRALIA, MORGAN STANLEY AUSTRALIA LIMITED, ROYAL BANK OF CANADA, BLOOMBERG LP, UNITED STATES. FEDERAL RESERVE BOARD, BANK OF ENGLAND, DEUTSCHE BANK AG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ROY MORGAN RESEARCH LIMITED, AUSTRALIAN BUREAU OF STATISTICS, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, LEHMAN BROTHERS INCORPORATED

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

ANZ-Roy Morgan Australian Consumer Confidence spikes to 118.8 – highest in 2 1/2 years

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 21-Jun-16

ANZ-Roy Morgan Australian Consumer Confidence rose 2.1 per cent to 118.8 in the week ending 19 June 2016, and it now stands at the highest level since November 2013. Good news released last week about the Australian labour market and the business sector is likely to have lifted sentiment. The increase in confidence was broad-based, with consumers’ views about their finances leading the gains. The indicator on "finances compared to a year ago" rose 3.1 per cent, and views towards "economic conditions in the next 12 months" increased by two per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

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