The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. US inflation rate is ticking back up again....3.7% doesn't sound like much but that is 3.7% on top of the big rip of inflation that came through last year. Working poor are getting crushed as the wealth gushes up to the 1%.
2. EV fires are becoming more regular - decent one on Tues @ Sydney Airport....Buyer beware - insurance premiums for EVs in the future are going to cost an arm and two legs!
3. US auto loan delinquencies hit the highest level since the GFC....Tracy @ SuperEquity pointed out to me that the data is way worse than back then because the unemployment rate was 5.8% Vs 3.8% now....The coming crisis is going to be one for the ages.
4. Orange Juice futures continue to surge.
5. Sandal maker Birkenstock has filed for an IPO on the NYSE with a valuation of $US8bn - new shareholders should pray these things don't go out of fashion.
ASX Market Update
ASX 200 down 53 points to 7153
Choppy trading on our market continues - kind of feels like GROUND HOG DAY considering the ASX 200 has gone absolutely nowhere over the past few years....IGO was the worst performer (down 7%) but it also went ex dividend of 60c fully franked.
"And the ASX 200 closed at 7153 points for the 786th time".
Can someone please explain to me why a WALL STREET private equity mob wants to takeover Costa Group (CGC) which is Australia's largest citrus grower? I'm seriously baffled guys....
Orange Juice won't stop! Another all-time high 👀 pic.twitter.com/rk61DBDABH— Barchart (@Barchart) September 12, 2023
The Day Ahead
- Our SPI is down 5 points
- Bitcoin up 0.6% to $26,128
Movements affecting our resource stocks today (USD)
- BHP in the US down 0.77%
- Newmont up 1%
- Gold down 0.19% to $1931
- Paper Silver down 1.25% to $23.11
- Platinum down 1% to $903
- Copper down 0.25% to $3.78
- Brent Crude down 0.14% to $91.94
- Iron ore up 0.3% to $119.45
Asian Market Update
Japan down 0.21%, China off 0.45% and Hong Kong was FLAT
After headlining China is collapsing for a few months, Bloomberg is switching the narrative to China is stabilizing
1. The narrative is no longer credible with improving 🇨🇳 data
2. Their bosses (Wall Street whales) bought enough in the diphttps://t.co/6WeO7Mm2Bn via @economics
— David Lee (@DavidLe76335983) September 12, 2023
Also those predicting that China would magically start exporting deflation to the rest of the world are in for a rude shock.
Global Market Update
DOW down -0.2%
US inflation came in at 3.7% vs 3.6% expected by the market. Surprisingly, investors decreased the odds of future rate hikes.
Germans off 0.39%, Brits FLAT and Frogs fell 0.42%
BP CEO Bernard Looney was sacked after it came out he had been having it off with more than one of his underlings. BP shares finished FLAT - the market was never impressed with this guy so it was a bit of a non-event for shareholders.
"I only had 3, maybe 4 on the go in the head office and perhaps a few more at our various global outposts....I was the top boss...the big dog...what was I supposed to do?"
Key Market Summary