The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Trump’s media stock spiked 31% overnight…..The mental illness known as Trump Derangement Syndrome (TDS) also surged as the former president survived despite the police, FBI and secret service allowing the gunman (who was featured in a 2023 Blackrock commercial) to take the shot.
2. China’s economy expanded by 4.7% in the last quarter Vs 5.1% expected….It is rare that Chinese economic data misses the target.
3. With inflation running at an out of control 33%, Nigeria plans on securing more GOLD to back it’s financial system.
4. A government report is blaming the CFMEU pay rises will add 10% to the cost of building an apartment in NSW this year alone…..It’s just more propaganda – never forget, the RBA digitally printing $300bn of money out of thin air is the original culprit of this inflation.
5. Bloomberg is saying that chocolate makers have been processing cheap COCOA beans sourced before the huge run higher – so expect chocolate prices to start rising from here.
ASX Market Update
ASX 200 up 58 points to 8017
Our market cracked through the 8000 point barrier for the first time as investors continue to push our big 4 banks higher; CBA and ANZ added 0.78% NAB put on 0.81%…..I seriously can’t believe CBA is now trading on a whopping PE ratio of 22.49 times profit which is double that of BHP. In other words, on a profitability basis CBA is currently twice as expensive as BHP….And comparing dividends: CBA is paying 3.5% while BHP is likely to pay around 9%.
I have an AVOID on CBA and a BUY on BHP.
Random Observation
Debt servicing chart in the US has gone vertical since covid….I’m sure everything is just fine and dandy. LOL!!!
The Day Ahead
- ASX futures are FLAT
- Bitcoin up 6% to $63,599
- BHP in US down 1.39%
- Newmont in US up 0.5%
- URNM down 1.22%
Movements affecting our resource stocks today (USD)
- Gold up 0.18% to $2425
- Paper Silver down 0.86%
- Platinum down 0.16% to $1011
- Palladium down 2.45% to $948
- Copper down 1.7% to $4.51
- Brent Crude down 0.15% to $84.90
- Iron ore FLAT @ $109.58
Asian Market Update
Japan down 2.45%, Hong Kong off 1.52% and China was FLAT
While economic growth came in lower than expected in China, we are seeing some green shoots in it’s property market….
Global Market Update
US Market
DOW up 210 points to 40,211
US stocks shrugged off the assassination attempt and had another strong session on hopes a stack of interest rates cuts are going to start in September.
European Markets
Germans down 0.84%, Brits off 0.85% and Frenchies fell 1.19%
Burberry shares tanked 16% after the luxury retailer said it is now expected to report a first half loss in the first half of the year.
I’m baffled: why are people not buying this heavily discounted flanny???….Maybe Burberry need to add a free VB tallie with every purchase!
Key Market Summary
