The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. CSR shares surged 17% after Bloomberg wrote a story that it was going to get taken over by a French materials giant. The stock then went into a trading halt to announce the deal….How dodgy is that?
2. Wage growth in Australia hit the fastest pace since 2009 – it was mostly thanks to government workers getting pay rises…but remember, the experts are telling us that inflation is in free fall!
3. Chinese investors are digging the rate cut from the PBOC….IZZ ETF had a good session on the ASX – it closed 4.11% higher. BUY
4. Chemical manufacturer, Orica (ORI) is buying a couple of cyanide plants in the US for A$1bn….I think it looks like a good deal…. Existing shareholders will be offered a share purchase plan @$15.84.
5. Corporate Travel (CTD) tanked 20% after first half earnings came up short and management also downgraded estimates for the full year….Some companies are obviously tightening the purse strings.
ASX Market Update
ASX 200 down 50 points to 7608
Woolies (WOW) plus the large cap iron ore miners dragged our market lower…BHP fell 2.35% FMG off 3.4% and WOW lost 6.6%
Check out the chart of the ASX 200 – we have gone absolutely nowhere since August 2021.
Look at this below….Media now brags about having inside information….Someone always knows – ASIC will just laugh it off (Is it now a given that the regulators are in on the scam????)….CLOWN WORLD
Random Observation
This kind of data is worth keeping an eye on…..It’s squeeze city in Sunnybank and Robina.
The Day Ahead
- SPI is down 21 points
- Bitcoin down 1.3% to $50,768
- BHP in US down 0.6%
- Newmont in US down 0.66%
- RIO in London down 0.93%
Movements affecting our resource stocks today (USD)
- Gold down 0.35% to $2032
- Paper Silver down 1.3% to $22.84
- Platinum down 2.7% to $889
- Copper up 0.26% to $3.87
- Brent Crude up 0.8% to $82.98
- Iron ore down 1.5% to $119.35
Asian Market Update
Japan down 0.26%, China up 0.97% and Hong Kong up 1.57%
Money was pouring into Chinese stocks which is great news for the IZZ ETF that I have banging on about. It rallied 4.11% on the ASX to close at $36.46. The fund is made up of the top 50 Chinese stocks listed in Hong Kong. BUY.
The increased confidence in China has come after the PBOC cut a key mortgage rate by 0.25%.
Global Market Update
US Market
DOW down 140 points to 38,421 (hour to go)
NATURAL GAS futures were the big mover overnight after surging 12%. I believe a number of high cost producers are being forced to cut production…..Good chance the bottom is in.
European Markets
Germany up 0.29%, Brits off 0.73% and Frenchies added 0.22%
This is what I think she would have said if we got the start of the below clip from the ECB…..
“Hi they/thems…you are going to love our Central Bank Digital Coin. Allowing us to have full control over every facet of your life is to ensure that you get to live a carefree and safe existence – one that you have always dreamed about! And please, don’t listen to those pesky conspiracy theorists, our social credit system is something you can trust”.
