The Good Morning Report – 1st December

5 Things that Grabbed my Attention

1.  OPEC announced additional OIL production cuts...I'm surprised prices didn't take off.

2. DOW surged 1.4% overnight taking the rally for the month of November to 8.9%....big move.

3. Hong Kong stock market is now trading on a forward PE of around 8 times earnings; many are baffled (myself included) by the extreme weakness Vs other markets. ASX 200 trades at 16 times and the S&P 500 is around 25!

4. As the Indian economy grows so too will it's reliance on COAL. A stack of COAL fired power stations are going to be constructed to help power the country. India also needs a steady and reliable supply of steel making COAL.....WHC, YAL, SMR, NHC and CRN are really the best way to get exposure to India.

5. Coffee futures surged 7% overnight. There is talk of a significant decrease in arabica stocks.

ASX Market Update

ASX 200 up 52 points to 7087

Our market rallied on hopes the RBA is done hiking interest rates. A bit of money found it's way into consumer and property stocks: Mirvac rallied 4.5%, Vicinity Centres put on 4.4% and Harvey Norman added 4.52%.

Random Observation

US government interest bill is going vertical....Not even Tony Hawke would want to drop in on this kind of ramp!

Treasury borrowed another $15 billion yesterday - we're closing in on $33.9 trillion in federal debt. Next stop...
...🚀 pic.twitter.com/ldcT7DTS5D

— E.J. Antoni, Ph.D. (@RealEJAntoni) November 29, 2023

The Day Ahead

• Our SPI is down 9 points
• Bitcoin down 0.3% to $37,776
• BHP in US up 0.3%
• Newmont down 0.47%
• Block Inc in US down 0.47%

Movements affecting our resource stocks today (USD)

• Gold down 0.5% to $2036
• Paper Silver up 1% to $25.32
• Platinum down 0.5% to $936
• Copper up 1.28% to $3.83
• Brent Crude down 0.3% to $82.85
• Iron ore up 1% to $129.75

Here is a little piece on Copper:

I am beginning to loosen up it is still early days!

Asian Market Update

Japan up 0.5%, Hong Kong up 0.29% and China up 0.26%

Xi Man has been checking out Shanghai Futures Exchange....With GOLD & SILVER trading at a premium in China, I expect the continued draining of metals from the WEST to the EAST.

From November 28th to 29th, President Xi Jinping made an inspection tour in Shanghai. During his trip, Xi inspected the Shanghai Futures Exchange, an exhibition on Shanghai's sci-tech innovations and a government-subsidized rental housing community... pic.twitter.com/2xM0pb5Gs9

— ShanghaiPanda (@thinking_panda) November 29, 2023

Global Market Update

US Market

DOW up 520 points to 35,950

DOW had a very strong session to finish the month with a gain of 8.9%. Traders are starting to price in rate cuts next year.

European Markets

Germans up 0.3%, Brits added 0.41% and Frenchies put on 0.59%

The private jets are set to touch down in Dubai from across the world for the COP 28 climate propaganda conference. For the next 2 weeks we will hear from either the corrupt or the brainwashed. Not a skerrick of truth will be told.