The Good Morning Report – 26th October

5 Things that Grabbed my Attention

1.  Aussie inflation rate came in at a higher than expected 5.6%....Very good chance that Bullocks hikes rates next month.

2. Resource wars are heating up: China is now planning to restrict exports of GRAPHITE....BETA Shares XMET, which is a portfolio of high quality miners from around the world that are producing all sorts of critical metals, is looking good after a decent pullback. BUY last sale $7.18

3. The People's Bank of China (PBOC) is pumping fresh stimulus into the economy.

4. Magellan (MFG) shares fell yet again as the CEO got turfed.... One of my best calls has been to AVOID financials as the sector (outside of the big four banks and a few others) now resembles a murder scene. MFG has tanked a whopping 89% since July 2021....So when is MFG a BUY? Well back in June they stated that NTA was $4.71 Vs $6.34 last sale... but... they went WOKE and ETF providers are eating their lunch, so the stock still doesn't excite me.

5. Sydney construction company NPM called in the administrators....Pretty wild just thinking that we have been in a construction boom where builders have gone bust all over the show.

ASX Market Update

ASX 200 down 2.6 points to 6854

Mining stocks on the ASX pushed higher thanks to a fresh round of stimulus out of China. On the flipside, most other sectors were on the nose as higher than expected inflation data created a bit of unease due to the potential for higher interest rates. Our portfolios would have done better, but the strength in the AUD didn't help PRECIOUS METAL ETFS.....LYC rallied 4.4% and WHC added 2.37% while ETPMAG fell 1.27% and ETPMPT dipped 1.46%

Random Observation

SUGAR has been on a very nice run....

The Day Ahead

• Our SPI is down 22 points
• Bitcoin up 2.2% to $34,594

Movements affecting our resource stocks today (USD)

• BHP in the US up 1.1%
• Newmont down 4.4%
• Gold up 0.27% to $1991
• Paper Silver down 0.5% to $23.00
• Platinum up 2.48% to $913
• Copper down 1% to 3.58
• Brent Crude up 2.25% to $90.05
• Iron ore up 1.08% to $117.35

Asian Market Update

Japan up 0.67%, China put on 0.4% and Hong Kong added 0.55%

Xi Man ordered the PBOC to pump up the tyres (injecting fresh funds into the economy).

Chinese #cement makers, #construction machinery manufactures, building material suppliers stage strong rally after govt announced plan to issue additional 1 tn yuan treasury bonds in Q4.https://t.co/haGgRmRP6L https://t.co/eIHXOtPJb1 pic.twitter.com/p1jrzL2d9v

— YUAN TALKS (@YuanTalks) October 25, 2023

Global Market Update

US Market

DOW down 105 points to 33,035

TECH stocks got a bit of a touchup after GOOGLE parent ALPAHBET posted quarterly earnings that came in WEAKER than expected. ALPAHABET fell 9.6% - the stock had been having a great run this year, so it was only natural to see profit takers move in.