Financial shares weigh ASX as real commission continues



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Australian stocks opened the lowest week on Monday as the latest round of the real banking commission weighed on the financial sector.

The S & P / ASX 200 index fell 36.9 points, or 0.6 percent, to 5693.7, while the General Index of All Orders closed 36.4 points, or 0.6 percent, lower than 5786 , 4.

"Banks are obviously a major hurdle and did not do well in the previous six sessions of the bank's actual commission," said McKenna Macro founder Greg McKenna. "On the balance sheet, the pressure remains on the local market."

Major financial institutions closed lower on Monday. Commonwealth Bank shares fell 0.6% to $ 68.50, Macquarie Group fell 2.3% to $ 116.23, ANZ closed 0.8% to $ 25.16, Westpac declined 0 , 6% to US $ 25.12, and the NAB closed at US $ 23.58, down 0.8%.

Viva Energy downgraded its forecasts for fiscal year 2018-19, announcing to the market that its underlying earnings before interest, taxes, depreciation and amortization were set at $ 62.1 million lower than expected.

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The company cited higher oil prices and a weaker Australian dollar as the main reasons for the downgrade, which pushed up margins in its refinery business and reduced demand in its retail business. Its shares fell 12.2% to $ 1.80.

Shares of Medibank Private fell 6.1 percent to $ 2.60 after the company announced that it had lost its contract with Garrisson Health Services to provide private health insurance to 80,000 members of Australia's military. The insurer is poised to make a big impact on profits when the current contract ends June 20, 2019.

Fairfax Media shareholders voted in favor of a merger with Nine Entertainment in a meeting on Monday.

Fairfax investors voted 81.49% of the shares in favor of the merger, while 18.5% voted against the merger. The agreement still required the approval of the Federal Court on Tuesday, November 27. Fairfax Media shares rose 2.4 percent to 63 cents. Entertainment stocks closed up 1.8 percent at $ 1.66 and Holdfax's Holdings, which owns Fairfax, rose 4.7 percent to $ 2.46.

Shares of Cleanaway Waste Management rose 6.3 percent to $ 1.86. A report by Credit Suisse entitled The age of plastic: at an inflection point said that the waste management sector, especially Cleanaway, would benefit from a national waste strategy with the federal government set to release a national waste policy by the end of the year.

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G8 Education

UBS believes that G8 Education is starting to recover after a difficult year for the child care provider. In the past 12 months, the company's share price has fallen more than half, before rising in the last four weeks. The broker said that while the supply should be tight for the company by 2019, its recent trade suggests that its "self-help" initiatives are gaining momentum. The G8 downgraded its earnings guidance in its most recent trading update, but analyst Tim Plumbe said there were positive signs and that the underlying deals had improved. He noted that, for the growth of similar occupation, it was anticipating the previous corresponding period and wage pressures appeared to have stabilized. UBS raised its G8 Education price target from $ 2.55 to $ 3.20 and maintained its & # 39; purchase & # 39; in the company.

What moved the market

US Oil Production

The US Energy Information Administration said it expects oil production in all major US shale basins to increase until December. The Permian, Bakken, Eagle Ford, Niobrara, Anadarko and Applachia bases are expected to increase capacity. These basins (along with Haynesville) accounted for almost all of US oil production growth since the end of December 2015. The Energy Information Administration expects output to increase 16.5% to 10.9 million barrels per day this year before climbing higher. 10.6% next year. There is also an accumulation of oil wells to be completed, with the number continuing to rise.

Iron ore

Iron ore prices rose on Friday, rebounding from a poor week with demand expectations as China's steel production restrictions narrowed. Cuts in China's steel products from mid-November through mid-March in the heating season are likely to be less severe because there are still plants operating at high capacity utilization rates in northern China. The exact constraints on sintering and steel production are still unclear. The market is also shifting to low-grade iron ores because of the lower steel prices that weigh the steel mill's margins. China has greatly favored the higher-grade ores in recent months due to environmental concerns.

American dollar

The US dollar could be boosted this week because of worries about the future of a trade deal between China and the US. At the APEC weekend summit, there was more tension between Vice President Mike Pence and Chinese President Xi Jinping. Investors were more optimistic earlier in the week after US President Donald Trump said China was eager to close a trade deal, though four of the top five components were missing from China's response to China's demands. USA. The US dollar performed well this year during a period of intense trade tensions as investors sought a safe haven.

GDP of New Zealand

Capital Economics is predicting that New Zealand's GDP growth will decline over the next two years as net migration begins to decline. Net migration has been a major driver of GDP growth for the country in recent years. "Policy changes and a tightening of the relative attractiveness of Australia and New Zealand will contribute to a slowdown in net migration to New Zealand," said economist Ben Udy. "Facilitating net migration will cause growth in consumption and investment in households to decline and is one of the main reasons why GDP growth slows from 2.7% this year to 2% by 2020."

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