The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Aussie inflation rate ticked up to 5.2% from 4.9%...Market only giving Bullocks an 11% chance of hiking rates in her first month as the RBA chairman....I think she will wait until November.
2. OIL prices surged overnight...resulting STAGFLATION (rising prices, falling economy) is going to be brutal.
3. I'm adding Resmed (RMD) to my BUY list after the recent 36% pullback in its share price...last sale $22.99
4. Star Group (SGR) is doing the $750mil capital raising at 60c - massively dilutive issue. What a train wreck - maintaining my AVOID.
5. In the UK, JP Morgan Chase is banning all customer transfers to crypto platforms or anything to do with crypto by the 16th of October.
ASX Market Update
ASX 200 down 7 points to 7030
Star Group shares fell 16% to a fresh record low of 63c after announcing the heavily dilutive $750 mil capital raise @ 60c...They also refinanced their debt, but on very average terms:
BBSY is currently @ 4.19% so add on the 650 points or 6.5% and the cost of SGR's debt hits an eye popping 10.64%....Barclays and Westpac have officially become loan sharks!!
The very high rate does indicate that the BANKS now see SGR as a piece of garbage (JUNK).
Meet Tim "Sharky" Ward - Westpac's new Debt Compliance Officer....Once a month, Sharky will pay the SGR board a friendly visit - just to make sure they are staying on top of things!
Whilst I think people are mad to throw their money at crypto, a bank placing a ban on transfers is a step too far...You should be free to do what you want with your money.
The Day Ahead
- Our SPI is down 42 points
- Bitcoin up 0.2% to $26,186
Movements affecting our resource stocks today (USD)
- BHP in the US up 1.44%
- Newmont down 4.9%
- Gold down 1.3% to $1894
- Paper Silver down 1.7% to $22.80
- Platinum down 2.25% to $886
- Copper down 0.2% to $3.64
- Brent Crude up 2.8% to $96.67
- Iron ore up 1.2% to $116.35
Asian Market Update
Japan up 0.18%, China added 0.16%, Hong Kong put on 0.83%
Bring it on!!!...Can you hear that sucking noise as GOLD gets piped from the WEST to the EAST?
INSANE move in the premium for gold in the Shanghai Gold Exchange. Never seen this high of a premium before. Some say it's due to flight to safety as Chinese hedge against a falling yuan. It could be. But don't forget upcoming Mid-Autumn festival first "normal" celebration in… pic.twitter.com/WB58wU3WFN
— Brian Tycangco 鄭彥渊 (@BrianTycangco) September 27, 2023
Global Market Update
DOW down 68 points to 33,550
WTI crude oil futures rallied over 3% as inventories fell more than expected....Investors reacted by selling GOLD and BONDS with the proceeds pouring into the perceived safety of the USD....Xi Man would be happy that his nation gets to accumulate more GOLD at cheaper prices!
Germans down 0.25%, Brits off 0.43% and Frenchies were FLAT
Energy stocks were up, while insurers fell....With bonds getting whacked again, the losses insurance companies are sitting on must be out of this world. How long can it be contained is the question!
Key Market Summary