The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. The big market moving event this week will be the release of US inflation data on Wednesday morning our time....It is expected to come in around 6.3%
2. The boss of LG is spelling it out for you: "securing raw materials is more important than the price". (quote from a Bloomberg interview yesterday).
3. The STAR GROUP (SGR) still has 4 class actions to deal with, plus the ASIC and AUSTRAC investigations that will lead to mega fines....The former 'lifestyle' directors really did a number on shareholders. Thank goodness for my SELL/AVOID recommendation when I saw the scandals unfolding early on.
4. Russia is cutting OIL production by 500,000 barrels per day starting in March.
5. Last year, IAG hiked motor insurance by 12% and home insurance by 11%....IAG now expects to increases rates again this year to maintain margins....Central bankers lied to you from the start when they all said inflation was going to be 'transitory' or 'temporary'.
ASX Market Update
ASX 200 down 15 points to 7412
Star Group (SGR) crashed 20% to an all time low of $1.485 after announcing a write down on its Sydney casino by between $400mil to $1.6bn. New management are still working out the magnitude of the carnage so gave this staggering range to work off.....YIKES!!!....With so much uncertainty I am still maintaining an AVOID rating - I understand there could be value here, but I am letting this one go through to the keepers as the high debt levels start to become an issue.
It could be a bargain, but then again it may be a value trap....Sorry Team - I seriously have no idea where this stock is headed from here...So it's for the punters only!
Going to be interesting to see if this action leads to higher OIL prices....RUSSIA could potentially make just as much money but with less output.
The Day Ahead
Reporting: ANN, CGF, BRG, CSL, JHX, TPW, SWM, SGM
- Our SPI is up 50 points
- Bitcoin down 1.4% to $21,635
Movements affecting our resource stocks today (USD)
- BHP in the US was up 1.16%
- Gold down 0.5% to $1864
- Paper Silver down 0.43% to $21.98
- Copper up 1.1% to $4.06
- Brent Crude down 0.5% to $85.91
- Iron ore down 3.5% to $120.35
Asian Market Update
Hong Kong down 0.12%, China up 0.72%, Japan down 0.88%
Notice how Xi Man is getting extra chummy with OIL producing nations? Energy security is of paramount importance to him.
Iranian President to Visit China This Week on Xi’s Invite pic.twitter.com/ubzpBO5XKe
— Russian Market (@runews) February 12, 2023
Global Market Update
DOW up 376 points to 34,245
Traders were buying into the rumor circulating that lower than expected inflation is set to get announced tomorrow.... MICROSOFT put on 3.1% and NIKE added 2.4%
GERMANS up 0.58%, BRITS added 0.83% and FRENCHIES put on 1.1%
AVOID financials - there is just no reason to be there as bad loans start filtering through....
Key Market Summary