The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. US inflation came in at 2.9% which was lower than expected….Looks like the Federal Reserve is set to cut interest rates next month.
2. RBNZ cut rates by 0.25% to 5.25% despite inflation still above it’s target range (aka theft range) of 1% to 3%pa.
3. Japan’s PM is not running for re-election….He has been entangled in a funding scandal, but I think he can see a huge economic crisis coming down the pipe and wants nothing to do with it.
4. Latest ASIC data shows corporate insolvencies continue to make record highs as the ATO keeps burying small business.
5. EVN rolled the dice, after taking on a lot of debt, and won….Net profit surged a whopping 135% to $482 million. Gearing levels have dropped down to 25% from 33% so these guys could now actually be in a position to buy one of Newmont’s (NEM) smaller mines that are up for sale. BUY
ASX Market Update
ASX 200 up 23 to 7850
CBA posted a 6% fall in net profit to $9.32bn which was slightly lower than the $9.5bn expected by the market. The stock held up because the market liked the dividend increase due to the board upping the profit payout ratio to 79%….CBA is a very expensive bank as evidenced by it’s PE of about 22 times, dividend yield of 3.5% and no profit growth.
I found this slide in the results presentation….Unfortunately the end of cash is going to happen before we know it.
Random Observation
The digital ID is a precursor to a social credit score and a central bank digital coin (CBDC). The government is saying it is voluntary but I can assure you that once enough Aussies have signed up you will find business will begin to exclude those that refuse to comply – just like what happened with the jabs.
We have become a fascist state which is the merger of government and big business.
The Day Ahead
Bit of a boring day for us…
- ASX futures up 9 points
- Bitcoin down 3.1% to $59,013
- BHP in US down 2.5%
- Newmont in US up 0.17%
- URNM in US up 0.64%
Movements affecting our resource stocks today (USD)
- Gold down 0.94% to $2484
- Paper Silver down 0.81% to $27.56
- Platinum down 1.63% to $930
- Palladium down 0.54% to $919.50
- Copper down 0.33% to $4.03
- Brent Crude down 1.07% to $79.83
- Iron ore down 3% to $96.20
Asian Market Update
Japan up 0.58%, China off 0.6% and Hong Kong dipped 0.35%
This is why BHP, RIO and FMG were selling off on the ASX…..
Global Market Update
US Market
DOW up 242 points to 40,008
The Volatility Index (VIX) tanked another 9.3% to a reading of 16.2 as inflation came in lower than expected….The market has quickly become carefree once again.
Is that it for inflation?…I doubt it.
European Markets
Germans up 0.41%, Brits added 0.56% and Frenchies put on 0.79%
Stocks rallied as UK inflation came in at 2.2% which was lower than expected – this means the Bank of England may cut interest rates again.
Key Market Summary
