The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. GOLD hit a fresh all time high in USD….SILVER on the other hand, still has to rally another 57% to get there!
2. US bond market is pricing in a 100% chance of a 0.25% rate cut in September.
3. Rio Tinto (RIO) is rumored to be making a take over bid for Canada’s Teck Resources in what would be a mega deal for the mining industry.
4. Google is buying Israeli cybersecurity firm WIZ for an eye popping $23bn….I’ll be expecting them to hack like crazy as Google will need to justify spending that kind of money….You don’t honestly think that Nigerians and Russians are responsible for this kind of stuff do you??
5. Nike shares have not participated in the rally on Wall Street with the stock down almost 60% from it’s 2022 high….Nike is back at levels last seen in the covid panic selloff as sales are expected to plunge 10% next quarter.
ASX Market Update
ASX 2200 down 17 points to 7999
It was a wild trading session for Droneshield (DRO) which surged to a fresh all time high of $2.71, giving it a market value of over $2bn, before the stock tanked over 33%. The ASX then intervened and put it into a trading halt with a please explain (see below). DRO recovered a little to only close 22% lower. On the current expensive valuation I have an AVOID rating.
If you want to know what DRO does then click on this link.
Random Observation
Sometime in the future you will realize just how ridiculous this period was…..
The Day Ahead
- ASX futures are up 53 points
- Bitcoin up 2% to $65,194
- BHP in US down 1.9%
- Newmont in US up 2%
- URNM in the US down 2%
Movements affecting our resource stocks today (USD)
- Gold up 1.85% to $2473
- Paper Silver up 1.87% to $31.51
- Platinum up 0.47% to $1015
- Copper down 1.48% to $4.45
- Brent Crude down 1.37% to $83.69
- Iron ore down 1.6% to $107.15
Asian Market Update
Japan up 0.2%, Hong Kong off 1.6% and China was FLAT
China just clocked the largest trade surplus in history….The trade balance is worked out by subtracting exports from imports, so the powerhouse nation basically made $100bn profit in June from the rest of the world….Let’s be honest – the Xi Man is killing it.
Global Market Update
US Market
DOW up 742 points to 40,954
Money poured in to US industrial stocks while TECH was basically on the back burner. The market is super excited that Jay Powell is very likely to cut rates in September to fuel more inflation!
European Markets
Germans down 0.39%, Brits off 0.22% and Frenchies fell 0.69%
Shares in German luxury fashion company Hugo Boss fell 7.5% after cutting it’s full-year sales outlook due to weakening economic conditions.
‘Buy this cashmere coat so you can be as miserable as me’.
Key Market Summary
