The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Stocks surged in the US as Producer Price Index (PPI) came in lower than expected….Market is now more confident that the FED will cut rates….Inflation data will be out tomorrow morning.
2. Karoon (KAR) has started a $25mil share buy back which should help support the stock….I think the board is making a good move while the stock is cheap.
3. SQM Research reported that capital city rents fell 0.5% over the past month with Sydney down 1%.
4. Seek.com (SEK) reported that paid job volumes on it’s platform fell 20% last financial year and warned that the next 12 months is not likely to be any better….SEK fell 6.64% – I’m not rushing in.
5. Workers at the world’s largest COPPER mine in Chile, which is owned by BHP, have gone on strike….They should have striked when copper shot up over US$5/lb because prices have recently tanked 20%, giving them way less bargaining power.
ASX Market Update
ASX 200 up 13 points to 7826
Beaten up packaging company Orora (ORA) rallied 19% to $2.27 after receiving a takeover bid from an American private equity firm called Lone Star Funds who are offering $2.55 per share. The ORA board has rejected the deal as they believe it materially undervalues the company….There is a reasonable chance Lone Star comes back with a higher price or another buyer emerges, so there could be more upside in the stock. BUY
Random Observation
Starting to see more of this…
The Day Ahead
- ASX futures up 61 points
- Bitcoin up 2.7% to $60,679
- BHP in US up 0.19%
- Newmont in US up 0.47%
- URNM in US up 0.25%
Movements affecting our resource stocks today (USD)
- Gold FLAT @ $2504
- Paper Silver down 0.37% to $27.90
- Platinum FLAT @ $946
- Palladium up 3% to $927
- Copper down 0.18% to $4.06
- Brent Crude down 1.49% to $81.07
- Iron ore down 1.5% to $98.45
Asian Market Update
Japan up 3.45%, China added 0.34% and Hong Kong put on 0.36%
Huge demand for data around the world is going to drive LNG, COAL and URANIUM stocks higher over the long run….No need to overthink it.
Global Market Update
US Market
DOW up 408 points to 39,765
Starbucks shares roared 24.5% on news the board has booted the existing CEO Laxman Narasimhan and replaced him with the incredibly successful Chipolte boss Brian Niccol.…The stock has been struggling under Laxman so the market was absolutely frothing to see the back of him.
Chipolte shareholders were super bummed as their stock fell 7.5% on the news.
Hahahaha – I think we have to be living in a simulation; the dudes name was LAXMAN – which to me reads as Lazy Man. You couldn’t script it better!!!
European Markets
Germans up 0.48%, Brits added 0.3% and Frenchies put on 0.35%
European stocks rallied as UK unemployment dropped from 4.4% to 4.2% – no one was really expecting that with the market penciling in a move up to 4.5%.
Key Market Summary
