The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Credit Suisse (CS) crashed another 25% overnight after the Saudi's said they would not be able to offer any more financial support....Dominoes are falling!
2. Heavy night of selling in offshore miners and energy stocks as well, so I expect a bit of a nasty session on the ASX today...BHP down 5% in the US, over in London -RIO dropped 5.12%, SHELL off by 8%, BP fell 6.39%.....GOLD Miners bucked the weaker trend - Newmont and Barrick added 2% each as GOLD prices held up.
3. To help fix its busted up balance sheet, the Star Group (SGR) has put the Sheraton Grand Mirage up for sale - they want over $200 mil for it...SGR has a 50% stake....I still have an AVOID rating on the stock.
4. Zuckerberg is sacking another 10,000 people....He punted 11,000 in November.
5. China has officially moved all restrictions on importing Aussie COAL....I remain BULLISH on COAL.
ASX Market Update
ASX 200 up 60 points to 7068
We got a bit of a relief rally as traders cheered on the possibility that the RBA (and other central banks around the world) may pause next month and not hike interest rates. A bit of money found its way into property stocks - Stockland (SGP) rallied 3%, Mirvac put on 1.8% and Lend Lease (LLC) added 1.1%.
Supply of SILVER is falling while demand is SURGING....The fundamentals for SILVER have NEVER been this good! BUY ETPMAG.
Peru Silver Production JAN 2023 Falls 20%.— SRSrocco Report (@SRSroccoReport) March 14, 2023
More bad news out of Peru as silver production declined 20% vs. Jan 2022 and 26% vs. Dec 2022.
Peru Silver production declined 51 metric tons vs the same period last year. pic.twitter.com/LGnrTIYHCG
The Day Ahead
SILVER and GOLD in Aussies dollars held up, everything else is set to get hit today....
- Our SPI is down 142 points
- Bitcoin up 4% to $25,420
Movements affecting our resource stocks today (USD)
- BHP in the US down 5%
- Gold up 0.61% to $1922
- Paper Silver down 0.59% to $21.91
- Platinum down 3% to $966
- Copper down down 3% to $3.88
- Brent Crude down 4% to $74.41
- Iron ore down 1.2% to $130.20
Asian Market Update
Japan FLAT, China up 0.55% and Hong Kong added 1.5%
CLOWN show in Japan - the printing of money to buy stocks continues!
The Bank of Japan purchased 70.1 billion yen ($523 million) in exchange-traded funds on Tuesday as concern over the collapse of Silicon Valley Bank drove stock prices down here.https://t.co/vdvSdli1uo
— Nikkei Asia (@NikkeiAsia) March 14, 2023
The Bank of Japan is making a grave mistake doing this; they should be using the printed money to be backing the truck in on PRECIOUS METALS....This will all be super obvious after the currency crisis hits. Watch!
Global Market Update
DOW down 280 points to 31,874
All things considered the US markets held up remarkably well overnight. The Tech heavy NASDAQ actually finished FLAT....But there was no joy for First Republic Bank which tanked 21%.
Germans fell 3.27%, Brits tanked 3.8% and Frenchies dropped 3.58%
With the Saudi's pulling financial support it looks like the Swiss government will have to bail out or nationalize Credit Suisse.
What European bank is next? I think Deutsche Bank will soon be in the headlines.