The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. The great SILVER drain is picking up pace....Yesterday saw the largest ever one day withdraw from the Shanghai Futures Exchange (SHFE) - 15% of physical bullion has been stripped in the past week alone....Judging by the price action of SILVER lately you would think inventories are piling up....The stage is set for the mother of all squeezes (it's decades in the making).
2. I would say just about every single CEO of a major corporate is currently looking at ways to incorporate AI to increase productivity and cut costs.
3. JP Morgan CEO, Jamie Dimon is predicting more rate hikes in the US.
4. For the past couple of years Santos (STO) has been stuck in a trading range - sort of between $6.50 and $7.50....So I think it has been building a nice base to launch off - I am calling $10+ for the stock this year. We are due!! BUY
5. Bain Capital is looking to float Virgin Australia in November.......Virgin went bust and delisted from the ASX on the 17th of November 2020 - shareholders lost the lot.
ASX Market Update
ASX 200 down 3 points to 7259
Another sleepy sort of a day on the ASX as traders take the wait and see approach with the US debt ceiling negotiations still ongoing. New Hope (NHC) was one of the better performers as the market came to realize its quarterly report was pretty darn solid. NHC closed 3.5% higher....Elsewhere Sonic Healthcare (SHL) fell 3% after UBS initiated coverage with a SELL recommendation and a $31 target - their negative recommendation doesn't phase me one bit as I struggle to see SHL, which is a world leader in laboratory medicine / pathology, radiology and primary care medical services, not being busy for years to come. SHL is a BUY in my book; last sale $35.17
If you are confused about the debt ceiling in the US then this may give you some clarity...
The Day Ahead
- Our SPI is down 29 points
- Bitcoin up 1% to $27,172
Movements affecting our resource stocks today (USD)
- BHP in the US down 1.7%
- Newmont down 1.7%
- Gold FLAT @ $1976
- Paper Silver down 1.24% to $23.65
- Platinum down 1.76% to $1058
- Copper down 1.1% to 3.64
- Brent Crude up 1.3% to $76.98
- Iron ore down 2.3% to $106
Asian Market Update
Japan down 0.42%, Hong Kong off 0.42%, China fell 1.5%
The XI Man wants babies, so this would be giving him quite a few headaches...or is AI going to be his long term solution?
📉Marriage registration numbers in four Chinese provinces recorded over 30% y/y drops on May 20th.
🟦Guizhou -53.8%#China #population #macroeconomics #EconTwitter #RealEstate #demographic https://t.co/7ChNB2jx8h pic.twitter.com/VqqpTnQcpA
— CN Wire (@Sino_Market) May 23, 2023
Global Market Update
DOW down 231 points to 33,055
US stocks rolled over as debt ceiling negotiations were halted yet again....All for show.
Germans down 0.44%, Brits dipped 0.1% and Frenchies fell 1.3%
Bit of excitement in what would normally be a pretty mundane Shell AGM.....Do these protestors back up their convictions by not using OIL/GAS derived products or are they just spoiled brats?
— Josiah Mortimer (@josiahmortimer) May 23, 2023
No cheating...answer in tomorrow's report!
Key Market Summary