The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Stocks, bonds, GOLD and commodities fell on Wall Street as the FEDERAL RESERVE warned that more interest rate hikes may by be necessary to tackle inflation.
2. Canadian inflation is ticking back up - came in at 3.3% vs 2.8% previous....Rising food prices and energy were the culprits.
3. Russia increased interest rates by a whopping 3.5% to 12% in order to stop the RUBLE from tanking any further.
4. Lithium prices have dropped for 25 consecutive days in a row to hit a fresh 3 month low - this is why LITHIUM MINERS are also under selling pressure....When will it turn??? I think it will take a GLOBAL AUTO MAKER making a big investment in one of the miners.
5. Mirvac (MGR) cut the value of it's property portfolio by $528 mil: office down 5.6%, retail lowered by 5.3% but industrial increased by 6.2%.... MGR has lowered it's NTA to $2.64 - whilst the stock is trading at a discount to that ($2.37 last sale), I don't think you need to rush in.
ASX Market Update
ASX 200 down 109 points to 7195
Our market rolled over on fears that a weaker economy in China will have some negative consequences for us. If we start seeing job losses then look out - things could get very nasty indeed....On the positive - it was good to see two of our big positions - ETPMAG & PMGOLD both put on just under 1% each.
VinFast has a market cap of $85bn - more than the likes of FORD and GM....Got to be a CRAZY bubble.
VinFast shares soar in a volatile first day of trading on the Nasdaq as Vietnam’s largest electric-vehicle maker works to raise its profile on the global stage https://t.co/4DZvxm4Hi0— Bloomberg (@business) August 15, 2023
The Day Ahead
- Our SPI is down 24 points
- Bitcoin down 0.2% to $29,110
Movements affecting our resource stocks today (USD)
- BHP in the US down 1.8%
- Newmont down 0.47%
- Gold down 0.63% to $1923
- Paper Silver down 0.82% to $22.47
- Platinum down 0.5% to $887
- Copper down 0.5% to $3.64
- Brent Crude down 1.79% to $83.37
- Iron ore down 0.3% to $100.35
Asian Market Update
China down 0.82%, Hong Kong down 1.36% and Japan fell 1.46%
— CN Wire (@Sino_Market) August 16, 2023
These price cuts are likely to put some serious heat on the competition....Also notice how the 1% are winning big time - luxury items have been tanking in price, while essentials (food, energy, shelter) keep rising. This is going to be a particularly vicious cycle.
Global Market Update
DOW down 180 points to 34,765
US stocks rolled over again as the FED warned interest rates are likely to go higher. Everything pretty much sold off as the money poured into USD.
Germans up 0.14%, Brits down 0.44%, Frenchies dipped 0.1%
After UK inflation rate dropped down to 6.8%, Gareth got on TV to push the usual government propaganda in true 1984 style...
Want the reality?....We have witnessed the greatest wealth heist of all time. Yes their plan has been executed just about flawlessly - that is true - but their plan from the beginning of the SCAMDEMIC was to strip the middle class of wealth and send it up to the 1%. Every single policy has been about crushing the working poor to bring in a welfare state....Amazingly - the majority of people can't see it - it's too late anyway.
Key Market Summary