The Good Morning Report

The latest market news, commentary and strategy by Adrian Rowney 

5 Things that Grabbed my Attention

1. Silicon Valley Bank (SVB) which was the WOKEST bank on earth, has gone bust....It was also the 16th largest bank in the USA....Historic moment as this CRISIS HITS...Now you know why I have been banging on about avoiding financials!

2. Customers of SVB tried to withdraw $42bn but only $15bn was available. SVB's share price crashed another 66% before regulators shut it down as it could not raise capital.....Classic bank run....SVB had $170bn worth of deposits.

3. Fears of further bank runs saw the share prices of smaller banks in the US get crushed.

4. With hundreds of trillions worth of debt sloshing around, the global financial system can't cope with rising interest rates....The FED has organized an emergency meeting for this morning.

5. PRECIOUS METALS are the only true safe haven....metals will be volatile as well - just expect it...but this is where a chunk of your SUPERANNUATION needs to be.

ASX Market Update

ASX 200 down 166 points to 7144

I will work backwards here...PMGOLD and a few GOLD miners closed higher - while everything else got touched up on the back of the banking crisis in the US....Didn't mind that price action one little bit!!

Random Observation

AVOID FINANCIALS

The Day Ahead

  • Our SPI is down 39 points
  • Bitcoin down 2% to $19,893 (Saturday morning price)

Movements affecting our resource stocks today (USD)

  • BHP in the US down 1%
  • Gold up 2% to $1872
  • Paper Silver up 2% to $20.58
  • Platinum up 1.3% to $963
  • Copper down 0.85% to $4.00
  • Brent Crude up 1.25% to $82.59
  • $A buys 65.78 US cents

Asian Market Update

Japan fell 1.67%, Hong Kong whacked 3% and China dropped 1.4%

A thrilled Xi Man celebrated by giving himself a little golf clap....

The maskless lads in the front row are Xi Man's most trusted henchmen......they keep 1.4bn people in check....Just look the wrong way and see what happens!

Global Market Update

US Market

DOW down 345 points to 31,909

When Silicon Valley Bank couldn't raise capital to fix its balance sheet, the regulators stepped in and shut it down....A bank run happens so quickly.

I cut this from CNBC which shows the process of what happens to customer deposits...

SVB was a commercial bank focused on the IT sector, so its customers were not mums and dads...That's why 97% of deposits were over $250K.

European Markets

Germans fell 1.3%, Brits off 1.67% and CAC dropped 1.3%

European stocks were on the nose due to fallout from the collapse of SVB....Credit Suisse shares fell another 4.6% to a fresh all time low. It's market cap is now only US$10bn!

Key Market Summary

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Stephen Hall
Stephen Hall
September 21, 2023.
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