Markets live_ asx slumps on us rate rise worries static electricity in water

Shares clawed their way back from the worst of the session’s losses but still end firmly lower as investors dumped the big banks on higher odds of a US rate hike this year. Gas x dosage chewable The Aussie dollar is also feeling the weight of changing expectations, and it slid a little to 75.5 US cents. The ASX was also weighed down by Woodside, Wesfarmers and Aurizon trading ex-dividend, which helped pull the top 200 index down 46 points, or 0.8 per cent, to 5469.

The major lenders were heavily sold as traders responded to higher odds of a US rate hike as soon as September following the Fed’s central banking talkfest in Jackson Hole over the weekend. The Big Four fell by between 0.7 and 1 per cent. Gas in babies Bond proxies on the ASX were also less popular, with the utilities sector declining 1 per cent and the listed property sector down 1.2 per cent.

While most of the big names on the ASX have now reported, a long tail of smaller companies are crammed into the final days of August profit season. Ideal gas questions Ship builder Austal topped the best performers list, climbing 13 per cent on its earnings update, while Estia Health headed the other way, plunging 17 per cent as its profit numbers missed guidance. Among the aforementioned ex-div stocks, Woodside fell 2.8 per cent, Wesfarmers 3.3 per cent and Aurizon 3.7 per cent.

Gas variables pogil Woolies fell 0.8 per cent as it was revealed that former JV partner Lowes was taking the supermarket owner to court over the failed Masters business. Speaking of courts, A2 Milk fell 5.1 per cent after Japanese beverage giant Lion Group alleged that A2 indulged in deceptive and misleading conduct.

Over the past five years, bond proxies have outperformed cyclicals by a sizeable margin, Morgajn Stanley notes, warning that recent share price gains are disconnected from current earnings growth forecasts. While Morgan Stanley still believes that the Fed will not raise rates in 2016, the analysts concede that after Fed chair Janet Yellen’s Jackson Hole speech on Friday, the possibility of a rate hike in 2016 is clearly on the table. • Co-ordinated global fiscal stimulus: should governments succeed in collaboratively driving fiscally funded investment this would be a net positive for growth, likely pushing bond yields higher and increasing demand for cyclical equities. • Markets stop believing in the efficacy of QE and negative interest rates: negative rates are putting increasing pressure on bank margins in Europe and Japan and is testing confidence in the policy.

Gas vs electric heat Any major deceleration in QE programs globally would reduce central bank bond demand and could undermine investor confidence in bonds. • Rotation out of defensive into cyclical equities: as investors move back into the energy and materials sectors they are likely to fund these exposures from the most overvalued/profitable portions of their portfolios.

“Despite ongoing declines in bond yields, bond proxy performance has been lagging. Electricity symbols worksheet Returns have been particularly weak over the past month, which is notable in the context of an interest rate cut by the RBA in early August.

” The broker has moved to underweight A-REITs in its model portfolio, rotating the majority of these funds into broad equity market exposure – taking the overall location to neutral – and the rest into cash. Gas station Back to top Infigen Energy has closed the door on earlier talks on a potential sale of the wind power producer but managing director Miles George says it will still explore “opportunities that create value” in the rejuvenated renewable energy market. Infigen revealed in May that it was considering options including a full sale of the company after receiving approaches from companies in China and Europe. “There’s been a number of parties that have expressed interest in talking to us about corporate activity but nothing has been sufficiently attractive in any of those approaches …

that is more attractive than undertaking growth through the existing opportunities that we’ve got in the business,” Mr George said on a conference call. Infigen reported full-year profit of $4.5 million for 2015-16, returning to the black after a $303.6 million loss the previous year. Electricity jeopardy game Profit from continuing operators was $7 million, up from a loss of $18.4 million in 2014-15, which Mr George said was mostly due to higher prices for electricity and for large-scale renewable energy certificates.

The sale of Infigen’s US wind power and solar development divisions during the year helped reduce debt and increased cash available for re-investment in growth. Gas 85 vs 87 Net debt, which until recently had been running at about $1 billion, was down to $594.9 million as at June 30. The bipartisan political agreement last year on a revised 2020 renewable energy target has opened up opportunities for growth in the sector, which Infigen looks set to tap into with its pipeline of potential wind and solar projects. Most Asian sharemarkets are posting losses today after Federal Reserve chair Janet Yellen and other central bank officials indicated a US interest rate increase as early as September remains on the cards. Hong Kong’s Hang Seng is down 0.3 per cent, the Shanghai Composite is flat, Korea’s Kospi has lost 0.2 per cent the Straits Times index in Singapore has dropped 0.8 per cent.

Japan’s currency-sensitive Nikkei has bucked the trend and climbed 2.3 per cent, the biggest one-day gain in three weeks, as the yen weakened against the resurgent US dollar. The case for a US rate hike has strengthened in recent months, with a lot of new jobs being created, and economic growth looks likely to continue at a moderate pace, Yellen said in a speech at the Fed’s annual monetary policy conference in Jackson Hole, Wyoming, on Friday. While Yellen did not give guidance on what the central bank needs to see before raising rates, she said the Fed already thinks it is close to meeting its goals of maximum employment and stable prices.

1 electricity unit is equal to how many kwh She described consumer spending as “solid” but noted that US business investment was weak and exports hurt by a strong dollar. Asked on CNBC whether a rate hike in September and more than one policy tightening before year-end should be expected, Fischer said Yellen’s comments were “consistent with answering yes” to both questions, albeit still data-dependent.

“While the move towards another Fed rate hike will likely cause bouts of consternation in investment markets I don’t see the same degree of uncertainty that we saw around last year’s Fed rate hike,” Shane Oliver, head of investment strategy at AMP Capital in Sydney, wrote in a note. “It’s clear from the Fed’s actions this year that it is aware of global risks, the impact of its own actions on those risks and any potential blow back to the US economy and of the impact of a rising US dollar in doing some of its work for it.” Company profit season is almost at an end and, despite the gloomy expectations and a few attention-grabbing losses from the likes of BHP Billiton and Woolworths, here are four positives for investors to take away: • Excluding BHP’s loss, profits are up: According to CommSec, which has crunched the numbers on the 128 companies of the S&P/ASX 200 Index that reported up to Friday, aggregate profits rose this year by 8.5 per cent to $36.8 billion, stripping out BHP Billiton’s $US6.4 billion loss. • Most companies are still making a profit: All but 11 of 128 companies recorded a profit for the 2015-16 financial year, while 64.8 per cent increased profit over the year, just above the long term average of 60 per cent, CommSec calculated. • Dividends at a record: A record number of companies paid dividends this year, according to CommSec, 92.2 per cent of companies paid a dividend, and of those, 68 per cent lifted profits, 17 per cent maintained their dividends and 15.2 per cent of companies cut dividends, including the likes of Santos, Origin Energy and BHP Billiton.

• Quality is improving: Credit Suisse equity strategist Hasan Tevfik says while growth remains elusive for Australian companies, the quality of the average company in the ASX 200 is improving: “Financial leverage has peaked, companies are more cash generative than they have been in years, and there remains a strong focus on conserving capital.” This improvement in quality should be able to sustain the elevated price-to-earnings ratio the Index is currently trading at. The number of companies paying out dividends is at a record, while profit increases are above average this reporting season so far. Electricity 1800s Photo: CommSec “New home construction has been the kingmaker of the Australia economy, but the cycle has peaked,” HIA chief economist Harley Dale said .

“In all likelihood, we will experience sharper falls in new home construction in both 2017 and 2018.” Dale said that while the media will likely beat up any large falls in home building figures, the boom was winding down from unprecedented highs. “The magnitude of decline in new home construction in coming years will, of course, be exaggerated by where we are coming from – record levels of medium/high density construction and historically healthy levels of detached /semi-detached dwelling construction,” he added.

Detached house sales fell in all five mainland states in July with the biggest drops being 12.8 per cent in South Australia and 8.7 per cent in Queensland. James Packer has trimmed his stake in Crown Resorts to less than half, the latest step in cutting down his involvement in the casino company.

The former Crown chairman’s private company Consolidated Press Holdings Pty Ltd said in a letter to Crown that it has sold about 4.8 per cent for $450 million to third party investors, cutting its stake to 48 per cent from 53 per cent. Consolidated Press said the move was made as part of its financing strategy and that it remained committed to Crown.

La gasolina in english It did not elaborate on the reason for the sale or identify the buyers. Over the past year, Packer has reduced his involvement in Crown, the media company he inherited from his late father and turned into a global gambling conglomerate. N gas price He quit as chairman in August 2015 and as a director in December.

He has also quit as chairman of Melco Crown Entertainment, a joint venture between Crown and Macau-based Melco International Development, as Crown sold down its stake in that company to 27 per cent from 34 per cent. Packer has said previously that he wants to concentrate on a new Crown casino development in Sydney and an IT venture capital business in Israel. McAleese has gone into voluntary administration and its shares have been suspended from the ASX after the transport group was unable to strike a deal to lower its property rental costs.

McAleese needed property group TTPH Pty Ltd to lower rents to waive rights to terminate haulage contracts to secure a recapitalisation deal with Hong Kong’s SC Lowy. The AFR’s Street Talk revealed on Sunday that McAleese sent a letter to SC Lowy over the weekend asking for a waiver on the TTPH condition, but the Hong Kong group refused to agree, and that McGrathNicol was on the hook to be appointed voluntary administrator.

“The TTPH condition was not satisfied and the failure to meet that condition was not waived by the SC Lowy consortium,” McAleese said this morning. But chief executive Mark Rowsthorn and SC Lowy are still planning to proceed with an “alternative transaction” and are putting together a Deed of Company Arrangement proposal for the administrators.

Some minority shareholders, who have opposed the recapitalisation plan, are still planning to attend a meeting scheduled for noon in Melbourne today. Grade 9 electricity module Minority shareholders called the meeting to try and force a board spill. Gas constant for air However, the meeting is now expected to be run by administrators and adjourned if it goes ahead. McGrathNicol said it would continue running McAleese’s business while it reviews the company’s operations, and said it was in “advanced negotiations” with the transport group’s banks over a short term funding facility to provide working capital.

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