Good morning. Trust that you had a nice weekend are raring to go for another busy week on markets… now that US earnings are out of the way, the key question will be what are the main catalysts that will drive markets?
Global central banks have little to no “ammunition”, as both fiscal and monetary policies are ineffective…. The RBA may cut interest rates again next month but as AUS inflation is extremely low, cutting rates do not have a strong bearing on markets….. Our focus this morning is on a special opportunity, YPB… Make sure to listen to the podcast, as it is an interesting story…
Trust that you had a nice weekend and are raring to go for another busy week …
*** Peak Opportunity: YPB Group Limited (YPB) – Placement at 18.6% discount to Friday’s closing price at $0.24…
Before we talk markets, we have a special opportunity to bid into the YPB placement, which is already over-subscribed.
For those that don’t know much about the YPB Group (YPB.xasx) and want to learn more about the business, please listen to the below podcast that we recorded with our friends, Boardroom Media:
YPB Group Podcast: Listen here (CTR CLIICK)
Like all deals that Peak recommends, we have (1) personally met with both senior and middle management (2) believe that the counterfeit market opportunity Is growing and extremely large (estimated to be >$1.7 Trillion by 2020) as brands such as Blackmores, A2 Milk, Swisse and Bega Cheese(to name a few), fight counterfeit in Asia and more importantly, (3) are extremely impressed with YPB’s recent earnings guidance of $5M+ profit over the next 12 months and its recent partnership with global packaging company, Orora (ORA.xasx), we feel, is just the start….
Bids are due via email at 4:00pm today.
So what happened on froday night?
US Stocks rose (Dow Jones +67 points), as investors factored in a potential June rate rise, while commodities held firm….
Focus this week will largely be on macro-economic data and whether further stimulus by central banks will help “propel” global economies…
What happened Friday?
Australian shares recorded their sixth straight week of gains, even as American shares fell to their lowest since March on growing concerns that the US Federal Reserve will raise interest rates as early as June.
Although falling short of last week's highs above 5400, the benchmark S&P/ASX 200 index nevertheless managed to increase 0.5 per cent on Friday and 0.4 per cent for the week to close at 5351.3. The broader All Ordinaries lifted 0.5 per cent on Friday and 0.3 per cent over the week to close at 5415.2.
So… What's on today?
Local data: None
Overseas data: Japan April trade balance; Euro Markit May manufacturing PMI, Markit May services PMI, Euro May consumer confidence; US Markit May manufacturing PMI
Fed speakers: James Bullard, Patrick Harker
The SPI is up 3 points this morning.