The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. AFR reported that corporate insolvencies spike to the highest in a decade – retailers, construction and hospitality were the hardest hit….The ATO put many of them under as small business really struggles to cough up obscene amounts of tax levied. It makes me sick seeing our political elites SWANNING around while good people trying to make a quid get sent to the wall….BIG GOVERNMENT IS LIKE A HIDEOUS CANCER ON US ALL.
2. Bank of Japan (BOJ) announced it is no longer going to be buying ETFs and REITS.
3. Chinese industrial production came in way higher than expected the other day….It appears to me that China is benefiting greatly from the de-industrialization of Europe.
4. Stocks on Wall Street took off as the FED indicated 3 rates cuts were coming this year….FED kept interest rates in the US on HOLD @ 5.5% as widely expected.
5. Bank of America (BoFA) says the most crowded trade is LONG the “Magnificent 7” followed by SHORT China Equities….I am very happy with that as both of those trades can reverse quickly! BUY ASIA and IZZ.
ASX Market Update
ASX 200 down 7 points to 7695
I should’ve had the day off because it was an absolute snooze fest – see below for the performance of the major sectors by the afternoon….
Random Observation
It’s wild how punters put their life savings on BITCOIN.…I could never do it.
Just the other day it flash crashed down to $8900. WILD STUFF!
The Day ahead
- SPI is up 54 points
- Bitcoin up 2.6% to $66,446
- BHP in US up 2%
- Newmont in US up 2.2%
- RIO in London up 1.69%
Movements affecting our resource stocks today (USD)
- Gold up 1.2% to $2185
- Paper Silver up 2.13% to $25.67
- Platinum up 1.14% to $911
- Palladium up 3.26% to $1030
- Copper up 0.38% to $4.09
- Brent Crude down 1.4% to $86.16
- Iron ore down 1.3% to $105.25
Asian Market Update
Japan up 0.66%, Hong Kong FLAT & CHINA up 0.55%
Even after the rate hike by the Bank of Japan, the YEN has continued to weaken….Below is a table of the major crosses. The YEN is down across the board while the other major currencies experience strength as indicated…..For Japan this means even more inflation/stagflation as imports become more expensive.
On the positive site – a holiday in Japan has become a fair bit cheaper….
Global Market Update
US Market
DOW up
Traders were fizzing at the prospect of 3 future rate cuts at a time when government debt is increasing by $1 Trillion every 100 days….Analysts say they are baffled by the strength of GOLD – I’m actually baffled it is not 3 times higher already!!
“Sorry POORS, this is for my WALL STREET HOMIES only”
European Markets
GERMANS up 0.15%, BRITS FLAT, FRENCHIES off 0.48%
These warmongers have lost their minds and this action would set a very dangerous precedent. As per usual the exact opposite would be true as Europe would become a more dangerous place to live….
