The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Aussie inflation came in at 6.8% vs 6.4% expected - which means the probability of the RBA increasing rates next month has also increased.
2. Overnight Nvidia's market value briefly cracked US$1 TRILLION....profit takers then moved in with the stock closing 4.5% lower.
3. Thermal COAL prices fell another 12% taking the loss from its high to 69%....This price action reminds me of what recently happened with LITHIUM which also fell around 70% before bouncing hard....I maintain my BULLISH view on YAL, WHC, NHC and SMR.
4. Saudi Arabia needs at least an $80 OIL price to balance the books....With OIL trading @$72.71, there is a good chance of production cuts at the next OPEC meeting.
5. APRA has sounded the alarm on the heavy exposure banks and Industry Super have to falling commercial property prices....yep - pain is coming.
ASX Market Update
ASX 200 down 118 points to 7091
Our market got a bit of a touchup after inflation data came in well above what was expected. Financials fell 2% while the miners lost 2.2%. Helping our portfolios offset the heavy selling in most stocks was ETPMAG (SILVER in AUD) and PMGOLD (GOLD in AUD) both rallying 1.8%.
PAPER or PRECIOUS METALS (PMs)?.....Currently the WEST loves PAPER while the EAST loves PMs....eventually both sides will be scrambling for PMs....How do I know?.... all fiat currencies revert to their intrinsic value which is basically ZERO, while PMs have never failed in history!
This is what happens eventually when you "print more money" 🤦♂️— Wall Street Silver (@WallStreetSilv) May 26, 2023
The Day Ahead
- Our SPI is down 11 points
- Bitcoin down 2.6% to $27,049
Movements affecting our resource stocks today (USD)
- BHP in the US down 1.4%
- Newmont up 1%
- Gold up 0.29% to $1982
- Paper Silver up 1.8% to $23.66
- Platinum down 2% to $1000
- Copper FLAT @ $3.66
- Brent Crude down 1.13% to $72.71
- Iron ore down 0.96% to $103.5
Asian Market Update
China down 0.61%, Hong Kong off 1.9% and Japan fell 1.4%
Hong Kong is back into a BEAR market again....
— CN Wire (@Sino_Market) May 31, 2023
Global Market Update
DOW down 131 points to 32,910
With Nvidia shares cracking the $1 Trillion mark, you have to wonder if competition for it's AI chips is going to come in hard.
Germans down 1.5%, Brits off 1% and Frenchies dropped 1.54%
German inflation slowed from 7.2% to 6.1% - the massive pullback in prices of fossil fuels is behind it....I don't see Europe getting to enjoy this CHEAP energy over the long term without Russia.