The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. US market is only pricing in a small chance the FED will hike interest rates tomorrow....Tech stocks surged, OIL fell 4% on a GOLDMANS downgrade.
2. Westpac (WBC) announced it has punted 300 people from its business and retail unit....Don't be surprised if this is just the beginning.
3. Newmont was forced to shut its massive Penasquito SILVER mine in Mexico after workers went on strike demanding more money....This mine accounts for 3% of total supply.
4. Palaszczuk is planning on shutting down 5 of our coal fired power stations by 2035 and replacing it with 2 renewable energy pumped hydro plants.....Not only is this an act of environmental vandalism but an economic one as well....Yesterday was overcast with no wind - which would have translated to no power....We are living in an alternative reality.
5. Larry Fink who is the CEO and co founder of Blackrock has sold a heap of stock lately....red flag?
ASX Market Update
ASX was SHUT for the inaugural King Charles Sausage Sizzle @ Bunnings.
Another one for the 'PUTIN IS ISOLATED' file....
🇷🇺 The 26th St #Petersburg International Economic Forum takes place on June 14-17.— Russia in RSA 🇷🇺 (@EmbassyofRussia) June 9, 2023
✅ Foreign participants from over 120 countries will attend it with UAE as this year’s main country guest. #SPIEF2023 motto is “Sovereign development as the basis of a just world. pic.twitter.com/4BJY7b2lJL
The Day Ahead
- Our SPI is down 11 points
- Bitcoin was FLAT @ $25,968
Movements affecting our resource stocks today (USD)
- BHP in the US down 0.27%
- Newmont up 1.27%
- Gold down 0.25% to $1971
- Paper Silver down 1% to $24.15
- Platinum down 1.6% to $996
- Copper down 1% to 3.75
- Brent Crude down 4% to $71.81
- Iron ore down 3% to $109.25
Asian Market Update
China and Hong Kong FLAT, Japan up 0.52%
This is a rate cut for savers only....Xi Man wants some of those savings moved into the real economy.
⚡Chinese joint-stock banks, including China Merchants Bank, Shanghai Pudong Development Bank, Everbright Bank, and CITIC bank lower their deposit rates, following the six largest state-owned banks. https://t.co/NjP5x6yZqe
— CN Wire (@Sino_Market) June 12, 2023
Global Market Update
DOW up 189 points to 34,066
Stocks headed north on the view that the FED will not be raising interest rates tomorrow....Tech was the standout.
Brits up 0.1%, Germans up 0.93% and Frenchies added 0.53%
Another positive session in Europe as falling OIL prices translated to confidence from investors that inflation is headed much lower....Let's see what happens this winter.