The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. With Trump odds on favorite to win in November he has once again become a very powerful figure who can move markets.
2. Woodside (WDS) announced it is buying a fully permitted LNG development project in the US for around $1bn. WDS says the deal turns them into a global LNG powerhouse. BUY last sale $28.60.
3. I was very surprised to see GOLD and SILVER sell off when the largest IT outage in history hit last Friday…. Money rushed into USD and Bitcoin.
4. Israel bombed the crap out of a major oil depot in Yemen over the weekend so don’t expect to see the major shipping channel through the Red Sea, open anytime soon….High freight costs are going to stick around.
5. Ford has abandoned plans to make EVs out of it’s Ontario plant in Canada and will instead use the factory to make those F-250 beasts…..Ford has been losing billions on EVs so they had to pivot back.
ASX Market Update
ASX 200 down 39 points to 7931
South 32 (S32) shares fell 12.5% after the miner wrote down the value of Worsley Alumina refinery in WA by $581 million due to the government imposing a fresh set of environmental conditions that could render the operation uneconomical. S32 is appealing the decision….Political risk is certainly on the rise in Australia.
I cut the below from a recent strategy update….
South 32 thought they were being a good little woke mining company by divesting their MET COAL business, but the leftists in government can never be satisfied – EVER….The ridiculous part about the above slide is the so called “low-carbon future” (solar/wind/EV’s etc) is completely reliant on MET COAL!
S32 board is a total embarrassment for bending the knee to the unhinged, climate change movement that is trashing the environment with their green SCAM agenda. “Low-carbon” is an insane concept because without it, all life form on earth dies.
Random Observation
Elon has put laser eyes on his profile pic….This trend is big among those that pump cryptos, so there is a good chance he has loaded up on bitcoin again.
He also posted this overnight….
The Day Ahead
- ASX futures are up 53 points
- Bitcoin up 0.8% to $67,976
- BHP in US up 0.2%
- Newmont in US up 0.62%
- URNM in US up 0.4%
Movements affecting our resource stocks today (USD)
- Gold FLAT @ $2400
- Paper Silver up 0.2% to $29.36
- Platinum down 1.3% to $961
- Palladium down 0.64% to $896
- Copper down 0.7% to $4.20
- Brent Crude 0.34% to $82.33
- Iron ore down 1% to $103.50
Asian Market Update
Japan down 1.16%, China off 0.61% and Hong Kong up 1.25%
Stocks in China fell despite the People’s Bank of China (PBOC) cutting interest rates by 0.1% or 10 basis points. The mood was different in Hong Kong stock market, which rallied on the rate cut.
Global Market Update
US Market
DOW up 127 points to 40,415
The highly connected stockbroking firm that was reported to have executed the giant shorts in Trump’s media stock before the assassination attempt made a statement saying it was just a clerical error….So just like that, it never happened – case closed, nothing to see….As if Blackrock, Vanguard, the Bush and Cheney families would’ve had any knowledge of an assassination attempt of their bitter enemy – only crazy people would think that!!
European Markets
Germans up 1.29%, Brits added 0.53% and Frenchies put on 1.16%
Shares of European budget airline, Ryanair tanked 17% after reporting it’s profit had plunged 46% in the last quarter…..Fierce competition has driven down ticket prices while costs have stayed high. Ryanair said passenger numbers also hit the highest ever – so it is kind of surprising they are engaged in price wars.
Key Market Summary
