The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. US debt ceiling negotiators once again failed to come to an agreement. Stocks, bonds, precious metals and most commodities sold off as money poured into the perceived safety of the USD.....WESTERN investors still see USD as the ultimate safe haven, while in the EAST it is GOLD....Fascinating battle going on!
2. Food inflation in the UK is running at 19.1%....horrible situation for most.
3. Reserve Bank of NZ increased rates by 0.25% to 5.5%....Home loans across the ditch are now getting up around 8.5%.
4. US Oil & GAS giant Chevron is buying PDC Energy for US$6.3bn....M&A in the resource sector is continuing at a feverish pace. You see it is way cheaper to BUY than build these days.
5. I think it is only a matter of time before we see Beach (BPT) get taken over. BUY last sale $1.415
ASX Market Update
ASX 200 down 46 points to 7259
As expected by the futures market, we followed Wall Street lower....The badly beaten up Star Group (SGR) fell 1.67% to close at a fresh all time low of $1.175. I am still giving the stock a wide berth until we know the size of the fines that are on the way from ASIC and AUSTRAC for all the money laundering shenanigans that went down.
Meet Nicole Rose, the big cheese over @ AUSTRAC.....Million dollar question is - which NICOLE will SGR get?
I think you have to be mad to bet against old mate. This little clip is classic!....BUY WDS, STO and BPT.
#oil #stocks— Christian Reuel (@ChristianReuel_) May 23, 2023
Saudi Arabia's🇸🇦top energy official has issued another warning to oil shortists, just over a week before the OPEC alliance meeting+
"I would just tell them to watch out!" pic.twitter.com/aOLAxJG0lM
The two cards he can play to squeeze the shorts are: BUY a heap of OIL futures and implement production cuts.
The Day Ahead
- Our SPI is down 43 points
- Bitcoin down 3.8% to $26,215
Movements affecting our resource stocks today (USD)
- BHP in the US down 3.4%
- Newmont down 1.9%
- Gold down 0.67% to $1961
- Paper Silver down 1.96% to $23.16
- Platinum down 2.75% to $1028
- Copper down 2.5% to $3.56
- Brent Crude up 1.2% to $77.80
- Iron ore down 2.8% to $103
Asian Market Update
Japan down 0.89%, Hong Kong fell 1.62% and China dropped 1.28%
Perhaps a sign the GLOBAL economy is struggling....
#Shipping companies and #port operators are sliding in HK as BDI index hit lowest level in over two months on Tue as demand weakened for all vessel types.https://t.co/haGgRmRP6L pic.twitter.com/16zpam21PR
— YUAN TALKS (@YuanTalks) May 24, 2023
Global Market Update
DOW down 255 points to 32,799
US debt ceiling negotiators once again failed to come to an agreement. Stocks, bonds, precious metals and most commodities sold off as money ran for the perceived safety of the USD.
Germans fell 1.92%, Brits off 1.75% and Frenchies dropped 1.7%
UK inflation came in at 8.7% Vs 8.2% expected.....Food inflation is running at 19.1% which is a shockingly high number.
Key Market Summary