Global markets made gains overnight with US stocks hitting an all-time high.US oil surged more than 5 per cent after Iran shot down a US military drone in international airspace, heightening the prospects of a more direct confrontation between the two nations.
This week's podcast talks about the Cannasouth IPO, Smartpay annual report and provides a warning about CFD trading.
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Stock in Focus: Caltex (CTX:ASX)
Caltex Australia’s shares have slumped after the service station owner said it expected first-half underlying net profit to be less than half of what it was a year ago amid a slowdown in the country’s economy, with its only oil refinery set to barely break even.
Caltex said weakness in refining profits was plaguing the company's bottom line profit. The retail fuel market continues to be a very challenging industry, and longer term we believe with the popularity of fuel efficient (hybrid vehicles) and uptake of affordable electric vehicles there will be unavoidable headwinds and uncertainties for the industry.
We currently have a HOLD recommendation on Caltex.
Members should look out for a full update on Caltex to be released in our weekly report.
Australia & New Zealand Market Movers
The Australian share market added to gains (ASX 200 index +0.59%) as the rising prospect the Reserve Bank will cut rates in July supported Australian shares, pushing the local market to a fresh 11-1/2-year high. In stock news, Rio Tinto said it is experiencing iron ore mine operational problems, particularly in the Greater Brockman hub in the Pilbara, leading the miner to cut its shipments forecast from the area for 2019.
The New Zealand market was a touch lower yesterday (NZX 50 index -0.14%) as blue-chip stocks trading near record-highs gave up some of their recent gains. Infratil led the market lower after shedding rights to its dividend. Interestingly, the NZX has accredited investment platform start-up Sharesies as a market participant. Next month, investors will be able to buy stocks on the main board directly via Sharesies, and will be able to buy fractions of shares, something not offered elsewhere.
3 Things Markets Will be Watching this Week
- Trade War headlines are likely to remain drivers of investor sentiment.
- On Tuesday, the Reserve Bank of Australia will release the minutes of its last meeting, when it cut interest rates.
- The key event to watch for the week will be the latest US Federal Reserve policy meeting with an announcement set for Thursday morning AU/NZ time.
Have a Great Day,
