Markets Live: ASX edges back from ten year high

12:22pm

The British pound on Monday recorded its largest daily drop against the US dollar in nearly a month after two euroskeptic ministers announced their resignation from UK Prime Minister Theresa May's cabinet, leaving the British leader's Brexit plans in chaos.

Foreign Secretary Boris Johnson stepped down on Monday just hours after Brexit minister David Davis's resignation on Sunday evening, calling into question May's ability to deliver the vision of continued close ties with the European Union that she said they had agreed to last week. Davis had been in charge of exit negotiations with the bloc.

The two departures shatter May's own proclamation of cabinet unity last Friday, when she believed she had, after two years of wrangling, secured agreement on Britain's biggest foreign and trading policy shift in almost half a century.

Read the full story here.

12:01pm

The ASX couldn't hold onto an early ten-year high, with the market turning lower as investors turned negative on the banks.

The S&P/ASX 200 index lost 7.5 points, or 0.1 per cent, to 6278 while the All Ordinaries lost 4 points, or 0.1 per cent, to 6363. The Australian dollar edged up 0.1 per cent to US74.75¢.

Banks were trading lower, with CBA down 1.2 per cent, ANZ down 1 per cent, Westpac down 0.6 per cent and NAB lower by 0.3 per cent.

Miners managed to stay in the green, with BHP up 1.5 per cent and Rio Tinto up 1.3 per cent. Energy companies advancing included Woodside, up 0.8 per cent and Oil Search, up 1.2 per cent.

IPH shares climbed 6 per cent and CSR rose 2.7 per cent while Afterpay Touch advanced 2.7 per cent.

Pendal shares dropped 3.5 per cent and Transurban declined 1.3 per cent.

11:41am

NAB's business conditions index ticked up by 1 point to +15 index points in June, after easing in the previous month. Business confidence edged down 1 point to +6 index points.

Alan Oster, NAB group chief economist, said: "Conditions remain favourable across most states and industries."

"In trend terms, conditions in the mining sector remain highest even as the mining boom continues wind down, while the retail sector remains clearly the weakest," Mr Oster noted.

"The construction sector is also reporting robust conditions reflecting the large pipeline of infrastructure work and significant pipeline of housing construction underway."

11:26am

An $800 million deal to buy ASX-listed skin care company BWX is under a legal cloud after an American advisory house sought an injunction over a key part of the deal claiming the company's management stole its idea for a buyout.

Legal documents obtained by Fairfax Media reveal that Waterloo Capital Partners (WCP) has filed a claim in the New York Supreme Court accusing BWX management of engaging in underhanded and deceptive business practices by reneging on a signed deal.

The lawsuit has emerged amid the delicate due diligence process by private equity partner Bain Capital, which will continue for some weeks.

10:59am

Toll road giant Transurban will overhaul its fees amid suggestions it has been reaping millions by slugging motorists with excessive charges.

Documents leaked to Fairfax revealed Transurban, which operates roads in Victoria, NSW and Queensland, hauled in $147 million in 2016 by charging customers fees for pursuing unpaid tolls, image matching and replacing eTags.

The Victorian government said it is trying to make the toll system fairer for motorists under a new agreement for its controversial West Gate Tunnel project.

"As part of the West Gate Tunnel Project, we've negotiated a fairer deal for drivers that use CityLink, including a massive overhaul of toll enforcement and infringements," a government spokesman said in a statement on Tuesday.

"Unfortunately, the Liberals and the Greens have previously indicated that they intend to oppose these measures."

- AAP

10:45am

Macquarie analysts say that they expect mining companies to take their first tentative steps towards growth.

"Historically, this shift in focus has been perilous for shareholders when it has coincided with the maturing of the cycle.

"We believe it's therefore critical to identify those companies with the asset mix most likely to generate peer-beating returns – assets with strong free cash flow and growth potential – in a cooling commodity price environment."

The analysts named their Fantasy Mining World XI of mining assets in a nod to the World Cup.

"The assets include a good balance between cash cows and stars. Some are obvious, but there are a few surprises.

"We include four assets from BHP, two co-owned with Glencore; three assets from Anglo, one co-owned with Glencore; and one each from Rio, Vale, S32 and Glencore in our starting line-up for the World XI."

10:28am

The ASX climbed to a fresh ten year high at the open on Tuesday, with investors buying up mining stocks on strength in commodity prices.

The S&P/ASX 200 index advanced 16 points, or 0.3 per cent, to 6302 as trading got underway. while the All Ordinaries rose by the same amount in points and percentage terms to 6383. The Australian dollar rose 0.1 per cent to US74.75¢.

The miners were the strongest performers by sector, with majors BHP up 1.2 per cent and RIo TInto up 0.9 per cent.

Of the smaller players. Pilbara Minerals climbed 2.8 per cent and Oz Minerals rose 1.7 per cent, with the sector accounting for almost 9 points of the ASX advance.

Banks were also on the move, with ANZ up 0.7 per cent, Westpac up 0.5 per cent and NAB up 0.6 per cent. Macquarie Group shares climbed 0.4 per cent.

On the downside, toll road operator Transurban lost 0.9 per cent and Treasury Wine fell 1.6 per cent while Pendal Group dropped 4.1 per cent.

10:05am

With monthly jobs data out of the way, US investors are turning their attention to earnings.

"There are a lot of different themes competing for our attention," according to Peter Tchir, head of macro strategy at Academy Securities.

"From solid US growth, to Europe getting its act together, to Chinese and US currency moves, to the implications of trade wars with China and with the rest of the world, to the Fed, to midterm elections, to, well, you get the point," he wrote.

As earnings season unfolds, clarity on these fronts will help Wall Street gauge whether the near-decade long rally in US risk assets is heading for an Indian summer - or in its autumn years.

- Bloomberg

9:49am

Insurance Australia Group announced the permanent departure of its chief legal counsel Chris Bertuch, but did not explain why he has been on extended leave since at least the start of June.

Mr Bertuch will leave the $20 billion insurance giant on September 30. The company said he made the decision while on extended leave.

The Australian Financial Review's Rear Window column first revealed his absence one week ago and predicted he would not return.

One day after the news broke an IAG spokeswoman confirmed the company and Mr Bertuch were "discussing with Chris the length of his leave and return to IAG".

The Hayne royal commission into misconduct in the financial services industry will begin hearings scrutinising the insurance industry in September.

9:31am

Macquarie Bank has joined the ranks of lenders lifting their variable mortgage rates, shifting the spotlight to the big four banks and how they may manoeuvre to protect profit margins.

A jump in funding costs is to blame for smaller banks and other lenders moving out of step with the Reserve Bank of Australia on rates.

But this time round it comes against the backdrop of a damning royal commission into the financial services industry, which among other things has uncovered questionable loan writing practices. Falling house prices in many states and tougher lending policies are also prompting concerns.

Joyce Moullakis has the full story here.