The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. The former chief of PRECIOUS METALS trading @ JP Morgan just got sent to jail for 2 years for manipulating the market.....Hello mining executives....cat got all your tongues...anyone home?
2. Hard Coking Coal prices have rallied over 10% in the past few sessions in China....Doesn't look like Aussie investors have noticed yet - YAL, CRN and SMR should be up a lot more! BUY
3. AGL's so called mega battery @ Torrens Island in South Australia is now up and running - it can charge 75,000 homes for a grand total of 1 HOUR....There are no SERIOUS people in charge - we have ourselves a pure CLOWN WORLD.
4. Woolies boss says food inflation will continue to moderate over the next 12 months - understand he is not calling that prices are going to get cheaper, just not to go up as fast....I don't share that view, as I see a second and nastier wave of inflation on the horizon.
5. Multiplex is suing the Star Group (SGR) for $420 mil over the mega development of the Queen's Wharf in BrisVegas....On the bullish side - pubs tycoon and major shareholder Bruce Mathieson has asked the government for permission to increase his holding - but be warned there is a chance he could increase his holding, not by buying more shares (which would push the price higher), but via a high yielding convertible note....I truly have no idea how this will all play out - it really is a coin toss for investors right now.
ASX Market Update
ASX 200 up 26 points to 7148
Domino's (DMP) reported a NPAT of $122 million which was down 25% from the previous year. Bit of a crappy result, but the market pushed the stock up 11.8% on this info below...I maintain my BUY recommendation.
On the negative, mineral sands miner Iluka Resources (ILU) fell 11% to $8.27 after announcing they are going to pause some synthetic rutile output due to weak pricing and an uncertain economic environment. I applaud management for taking the appropriate action - no point in operating as a charity!.... ILU is a very unique and important mining company with a dominant market share in mineral sands so I am surprised that BHP has not taken them over yet - maybe it will be their next target. BUY
I bet he will get out early then live out his days in absolute luxury....He took one for the TEAM.
JPMorgan’s ‘Most Prolific Spoofer’ Gets Two Years in Prison— bob coleman (@profitsplusid) August 22, 2023
Gregg Smith was found guilty of market manipulation last year
Smith was the chief trader on JPMorgan’s precious-metals deskhttps://t.co/7PS9XBWC26
The Day Ahead
- Our SPI is up 20 points
- Bitcoin up 2.7% to $26,545
Movements affecting our resource stocks today (USD)
- BHP in the US up 2.93%
- Newmont up 1.53%
- Gold up up 1% to $1945
- Paper Silver up 3.97% to $24.38
- Platinum up 1.17% to $936
- Copper up 1.4% to $3.80
- Brent Crude down 1.37% to $82.89
- Iron ore up 2.3% to $113.25
Asian Market Update
Japan up 0.48%, China down 1.34%, Hong Kong up 0.31%
Coking COAL is having a nice run in China....great news for our listed miners such as YAL, SMR and CRN.
⚡️Most #commodities futures open up in #China on Wednesday. Coking #coal continues its rally.#IronOre rises by 2.7%, fresh high since May 2021. HRCs and #steel rebars are up 1%.#Copper +0.8%, #nickel +0.6%, #tin& #aluinum +0.5%, #zinc +0.4%.
Crude oil drops 1.8% in INE. #OOTT pic.twitter.com/a1vAyykjrT
— CN Wire (@Sino_Market) August 23, 2023
Global Market Update
DOW up 184 points to 34,472
US Tech giants stocks rallied overnight, but retailers were getting hit....Check out Foot Locker shares - it tanked 28% overnight and is now trading below the COVID crash levels of 2020....another nasty RED FLAG in my view.
Germans up 0.15%, Brits added 0.68% and Frenchies FLAT
With weak economic data coming through in Europe, the market is now only pricing in a 50% chance of the ECB raising rates by 0.25% next month.
Key Market Summary