The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. US inflation came in a bit above expectations at 2.4%, but the higher number is unlikely to stop the FED from cutting rates next month.
2. Legendary mining investor Eric Sprott has been buying a heap of SILVER miners/explorers recently…..The SILVER market is in it’s 4th year of deficit (demand higher than mining and recycling supply) so he would know a huge move higher in prices can’t be too far off….One specky SILVER play I like is Boab (BML) – it has been crushed over the past couple of years and could be bottoming out. SPEC BUY $0.096
3. Tracy @ SuperEquity thinks EchoIQ (EIQ) is worth a punt….EIQ is an AI medical tech startup which was created by some cardiologists that detects heart problems significantly better than humans can….SPEC BUY last sale $0.3
4. RBNZ cut interest rates by 0.5% to 4.75% and has indicated more cuts are on the way.
5. I have to make a correction….I initially thought RIO was paying A$5.85 for Arcadium but they are paying $US5.85 which is around $A8.75 – this explains why the LTM board accepted the deal on the spot.
ASX Market Update
ASX 200 up 35 points to 8223
It was good to see the MINERS win the session Vs FINANCIALS and it appears to be happening more regularly…..ETPMPD rallied 4.1%, RRL added 4% and WHC put on 2.4%
Random Observation
The outlook for our thermal COAL miners such as YAL, WHC and NHC looks absolutely superb to me. Supply from Indonesia is set to fall off a cliff – check this out….
The market is currently CLUELESS to the future supply squeeze in thermal coal.
The Day Ahead
- ASX 200 futures down 3 points
- BHP in US up 1.25%
- Newmont in US was up 1.27%
- URNM in US up 0.81%
Movements affecting our resource stocks today (USD)
- Gold up 0.81% to $2647
- Paper Silver up 2.3% to $31.37
- Platinum up 2.43% to $980
- Palladium up 3% to $1075
- Copper up 1% to $4.44
- Brent Crude up 3.26% to $79.08
- Iron ore down 0.2% to $104.85
Asian Market Update
China up 1.32%, Hong Kong up 2.98% and Japan added 0.26%
Chinese stocks bounced after a big round of profit taking in the previous session.
Global Market Update
US Market
DOW down 57 points to 42,454
US stocks were pretty quiet overnight after a slightly higher than expected inflation number of 2.4% came in….Commodities were pretty much green across the board.
European Markets
Germans down 0.23%, Brits FLAT and Frenchies fell 0.24%
BMW sales tanked again. The stock is down 21% over the past year and I think it will continue to trend lower. There is nothing WOWZERS about a BMW anymore and I doubt management have got any rabbits to pull out of their hats.
Key Market Summary
