The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Warren Buffett has bought a position in Ultra Beauty Inc which is America’s largest cosmetics retailer.
2. Metalurgical COAL prices have rolled over with Iron Ore as the Chinese steel market weakens….So it is probably going to be tough going for our COAL miners until Xi Man orders a big round of economic stimulus to pump the tires.
3. In a mega M&A deal, the privately owned MARS is buying Pringles owner Kellanova for US$36bn….Most people don’t realize this, but a few global giants pretty much own everything you see in the supermarket aisles.
4. Michael Burry (made famous from the Big Short movie) has allocated 21% of his fund to Alibaba shares and has about 45% invested in Chinese tech…..ASIA Tech Tigers ETF (ASIA) is a BUY
5. ASX 200 is only up 3% or 234 points since August 2021 – we’ve gone nowhere.
ASX Market Update
ASX 200 up 14 points to 7865
There were a couple of decent moves after reporting….Basically if a company MISSED expectations or provides a dodgy outlook then the stock falls. If we see a BEAT or a bullish outlook then the stock goes up.
Nufarm (NUF) fell 9.79% – MISSED (so good value has emerged)
Cochlear (COH) fell 7.33% – MISSED:
Origin (ORG) fell 9.43% – MISSED
NRW Holdings (NWH) up 9.72% – BEAT
Magellan (MFG) up 7.6% – BEAT
Random Observation
But unfortunately Starbucks are banning old mate from trading COFFEE futures…..Perhaps he will have to fire up the long lost cousin’s account to keep him off the breadline!
The Day Ahead
Looking like a pretty good day for us….
- ASX futures up 78 points
- Bitcoin down 3.26% to $57,003
- BHP in US up 0.77%
- Newmont in US up 0.35%
- URNM in US up 1.24%
Movements affecting our resource stocks today (USD)
- Gold up 0.52% to $2492
- Paper Silver up 3.62% to $28.34
- Platinum up 3.53% to $962
- Palladium up 1.39% to $935
- Copper up 2.48% to $4.14
- Brent Crude up 1.38% to $80.36
- Iron ore down 2.2% to $93.55
Asian Market Update
Japan 0.78%, Hong Kong FLAT, China added 0.94%
Move along – nothing to see~!
Global Market Update
US Market
DOW up 555 points to 40,563
US stocks surged again as traders pile back into stocks after dumping the other week….The FEAR index (VIX) fell another 6%.
European Markets
Germans up 1.66%, Brits added 0.8% and Frenchies put on 1.23%
Markets are continuing to have a run on the back of expectations that central banks will continue to ease (meaning they will cut rates).
Key Market Summary
