The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Chinese YUAN has now overtaken the USD as the most used currency for Chinese cross border trade....Xi Man is not mucking around.
2. META surged a whopping 13.9% overnight after posting better than expected earnings....Tech heavy NASDAQ closed up 2.43%....The SPI is indicating we will open 56 points higher this morning.
3. Our market is not pricing in anymore rate hikes out of the RBA this year, and a 50% chance of a cut around December.....I wouldn't get too excited - I think rates are going up this year.
4. The price of URANIUM is starting to edge higher....get ready - because I think it could takeoff. URNM is a BUY last sale $5.39
5. Lithium miner Alkem (AKE) is withholding spot sales into the Chinese market because they don't think prices are reflective of the underlying supply/demand fundamentals.....Wakey Wakey mining executives of COPPER/SILVER/NICKEL,TIN,ZINC & PLATINUM - this is how it's done!!
ASX Market Update
ASX 200 down 23 points to 7292
The big news was giant Japanese brewer, Kirin is taking over Blackmores (BKL) for $95 per share. Marcus Blackmore has accepted the deal so will be selling his 18% stake....Looks like Marcus has had enough after being forced to step back into a hands on role with the business and most recently going through a cancel campaign by the rabid woke left all because he plans on voting NO for the VOICE.....As for Kirin, well the Bank of Japan still has its interest rate set at minus 0.1%, so with all the cheep money sloshing around, acquiring a business with reliable offshore earnings makes plenty of sense...BKL closed 22% higher to $94.26 ....Will be a shame to see yet another iconic Aussie business depart the ASX.
My Japanese is a little rusty, but I think this is what the Boss of Kirin said about the exciting combination of the two business units...
"Let me tell you about the remarkable new breakthrough in health science...Studies show that drinking 6 to 12 beers everyday mixed with a cocktail of proprietary Blackmores vitamins, is a safe and effective way to becoming big and strong like Hercules!".
That NFT Bubble was hilarious....I still can't believe the ridiculous prices people were paying for cartoon drawings on the blockchain.
The Day Ahead
- Our SPI is up 56 points
- Bitcoin up 4% to $29,645
Movements affecting our resource stocks today (USD)
- BHP in the US up 1.2%
- Gold FLAT @ $1997
- Paper Silver up 0.36% to $24.96
- Platinum down 1% to $1094
- Copper up 0.36% to $3.86
- Brent Crude up 0.77% to $78.29
- Iron ore down 1% to $104.56
Asian Market Update
Japan up 0.15%, Hong Kong added 0.42% and China put on 0.67%
We are seeing quite a few HISTORIC moments in 2023....
The yuan surpassed the dollar as the most regularly used currency for cross-border transactions in China in March, according to government data, indicating Beijing's attempts to internationalize the yuan. $USDCNY pic.twitter.com/7Kt5yfHhjQ
— CN Wire (@Sino_Market) April 27, 2023
Global Market Update
DOW up 524 points to 33,826
The market was expecting a shocker but got the opposite out of META....Zuckerberg now has 2.99 bn active monthly USERS which generated $9.62 a pop....YEP - Instagram and Facebook are super addictive, which is why customers are called USERS.
Germans FLAT, Brits dipped 0.27% and Frenchies added 0.23%
Deutsche Bank CFO told CNBC the 'bank has passed with flying colors' when referring to the recent crisis....Time will tell - but I remember hearing this kind of talk from bankers back before the GFC.....I maintain my AVOID on FINANCIALS
Key Market Summary