The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Yesterday morning, $Aussie dollar GOLD prices hit a FRESH ALL TIME HIGH of $2935...It's now pulled back a bit to $2883.
2. ECB raised rates by 0.5% as the Swiss National Bank gave Credit Suisse a $54bn line of credit....European markets rallied overnight - I wouldn't get too excited; the financial system remains super dicey.
3. Inflation in Argentina just hit 103%....Brutal.
4. Latitude Financial (LFS) shares are in a trading halt as they have been hacked....Very happy that we have no exposure; MAINTAIN AVOID ON FINANCIALS
5. Aussie economy is proving very resilient as 64K people found a job in Feb. The unemployment rate fell to 3.5%....RBA likely forced to raise rates again next month. SQUEEZIE SQUEEZIE.
ASX Market Update
ASX 200 down 103 points to 6965
As widely expected, our market copped another touch up due to the debacle over at Credit Suisse (CS). I was surprised we didn't rally, as during the session we did learn the Swiss National Bank was coming to the rescue by providing CS a line of credit of $54bn to ensure it has sufficient liquidity.
It's now likely that WESTERN governments are going to backstop every banking deposit - therefore your money in the bank will be safe throughout this crisis.... but....the big question is: what will happen to the purchasing power of your money as central banks get forced to ramp up money printing to bail out the financial system??...We could end up with SUPER INFLATION which would devastate savings...Stay tuned, you don't want to miss one of my morning reports as the action heats up!!
GOLD has a 5000 year history as a store of wealth, yet bugger all advisors recommend their clients invest.....I think it is all by design; advisors who are GOLD/ SILVER bugs get ridiculed by their peers, because being bullish on PRECIOUS METALS is declaring your lack of trust for the financial system. Plus banks/brokers don't like customers with core holdings in METALS because they are more likely to sit and not turn over their accounts.
The Day Ahead
- Our SPI is up 14 points
- Bitcoin up 2.8% to $25,002
Movements affecting our resource stocks today (USD)
- BHP in the US down 1%
- Gold down 0.32% to $1925
- Paper Silver down 0.33% to $21.81 (Incredible the banks are keeping a lid on it, demand is spiking!! Clock is ticking on the naked shorts.)
- Platinum up 1% to $981
- Copper up 0.78% to $3.87
- Brent Crude up 1.2% to $74.58
- Iron ore down 2.6% to $128.48
Asian Market Update
Japan down 0.8%, Hong Kong off by 1.78% and China fell 1.12%
Xi Man continues to SELL US government bonds....What's he doing with the moula??? He is buying GOLD!!
A historic transition is taking place...
Chinese holdings of US Treasury securities fall to US$859 billion, lowest since 2009, amid rate hikes and tension https://t.co/JTEaEHzS4W
— South China Morning Post (@SCMPNews) March 16, 2023
Pay attention to this kind of stuff; back to 2009 - China was just a $5 Trillion economy!!
Global Market Update
DOW up 371 points to 32,246
US stocks rallied as the major banks agreed to deposit a whopping $30bn into First Republic Bank (FRB)....The big banks have been inundated with cash as Americans rip out their money from smaller banks...I see the move as just plugging one hole in a very leaky ship.
The beaten up FRB only rallied 9% on the news.
Germans up 1.57%, Brits added 0.89% and Frenchies put on 2%
European stocks rallied as the Swiss National Bank effectively bailed out Credit Suisse (CS) with a $54bn line of credit. CS shares rallied 19% and is now trading like a specky crypto rather than a 166 year old bank!
Key Market Summary