The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. US inflation came in at 4% Vs 4.1% expected....Stocks rallied on the news as it means the FED will likely pause.
2. The Nikkei 225 which is Japan's major stock market index, hit a 33 year high.
3. HostPlus is shutting its unlisted property and infrastructure fund as valuations fall - if you selected that investment option, I suggest you get out now.
4. Westfield is completely walking away from its San Francisco mall. It had a $558 million non-recourse loan against it, so is just handing the keys over to the lender.....Another example of commercial property going pear shaped - It is hard to imagine a second banking crisis not coming.
5. Uranium is on the move...she is going to BOOM: BUY URNM.
ASX Market Update
ASX 200 up 16 points to 7138
Domino's (DMP) was the worst performer in the top 200 after closing 5.86% lower to $43.55. DMP is exiting from Denmark completely and closing around 70 other underperforming stores.....
I rated DMP as a BUY at around $57, so am underwater at this stage...but.... I still see DMP as a complete beast of a business that pumps out pizzas in record time for the masses - so very hard to derail. Maintain BUY
Imagine what Kerry would have to say about the nonsense going on today if this is what he thought back then.....
Kerry Packer: "If anybody in this country doesn't minimise their tax, they want their head's read, because as a government, I can tell you, you're not spending it that well, that we should be donating extra." pic.twitter.com/Uw6QzTEZAp— Caldron Pool (@CaldronPool) September 28, 2020
The Day Ahead
- Our SPI is up 41 points
- Bitcoin up 0.32% to $25,890
Movements affecting our resource stocks today (USD)
- BHP in the US up 3%
- Newmont up 0.78%
- Gold down 0.76% to $1954
- Paper Silver down 1.3% to $23.73
- Platinum down 1.4% to $980
- Copper up 2% to 3.82%
- Brent Crude up 3.1% to $74.10
- Iron ore up 2.5% to $111.55
Asian Market Update
Japan up 1.8%, China added 0.15% and Hong Kong put on 0.6%
The Japanese stock market has surged about 25% this year to a 33 year high....The Bank of Japan keeping interest rates at minus 0.1% plus falling OIL/GAS prices have certainly been the backbone of this rally.
Global Market Update
DOW up 145 points to 34,212
Investors cheered on the weaker than expected inflation number and completely ignored the ongoing blow ups in US commercial property.
I cut this from StockCats twitter account.....It perfectly sums up how inflation works.
Brits added 0.32%, Germans up 0.83% and Frenchies put on 0.56%
Interest rates are set to go much higher in the UK with annual wage growth now running at 7.2%...Inflation is baked in.
As the yield goes up, the value of the bond falls.....This particular 2 year UK government bond was issued about 2 weeks ago @ 100 pounds and it has already fallen to 92.05....AVOID BONDS.
Key Market Summary