The Good Morning Report

5 Things that Grabbed my Attention

1. RBA kept interest rates on HOLD @ 4.1% but warned of more hikes in the future.

2. According to the ANZ-Roy Morgan survey, consumer confidence rose by 3.2% to the highest level since April....I'm not getting excited by the uptick - maintain AVOID on consumer discretionary.

3. Canada's largest copper miner Tech Resources announced a major copper production downgrade....The ingredients are all there for copper prices to explode higher.

4. The SEC has instructed Coinbase to delist all crypto's on its exchange apart from BITCOIN.

5. Due to the low prices of rare earths at the moment, Lynas (LYC) is going to withhold product from the market....Bravo! BUY

ASX Market Update

ASX 200 up 40 points to 7450

Our market perked up a bit after the RBA kept interest rates on HOLD....I was predicting a HIKE just based on the fact that our interest rates are lower than in the US yet we have double the inflation rate.

Random Observation

Got Copper?...Got Aluminium?

Will there be enough cables for the green energy transition? ⚡️

🔌 Demand for high-voltage cables to outstrip supply. New orders will likely top $20bn in 2023, compared to $3bn/year in 2015-2020
⛏️ Securing metals (copper/aluminium) may be a bottleneckhttps://t.co/KaVU35AmFf pic.twitter.com/zOganz3tn8

— Stephen Stapczynski (@SStapczynski) July 30, 2023

The Day Ahead

• Our SPI is down 41 points
• Bitcoin FLAT @ $29,209

Movements affecting our resource stocks today (USD)

• BHP in the US down 2.7%
• Newmont down 2.8%
• Gold down 1.37% to $1981
• Paper Silver down 2.19% to $24.42
• Platinum down 2% to $939
• Copper down 2.48% to $3.90
• Brent Crude down 0.23% to $85.23
• Iron ore down 2.2% to $105.23

Asian Market Update

Japan up 0.92%, Hong Kong off 0.34% and China FLAT

Not sure how Xi Man is going to keep inflation in check while at the same time trying to pump up every sector of the Chinese economy.

⚡Several Chinese airlines have announced that they will increase the fuel surcharge for domestic flights on August 5, 2023. For adult passengers, the surcharge will be 30 yuan for flights of 800 kilometers or less, and 60 yuan for flights of more than 800 kilometers.-Yicai#OOTT

— CN Wire (@Sino_Market) August 1, 2023

Global Market Update

US Market

DOW up 71 points to 35,630

The Yanks have probably forgotten what a down day is as the DOW finished in the GREEN again....Caterpillar rallied 8.9% after posting strong results.

"Oh dear, your truck broke Mr Miner....don't worry that will only be another $10 Billion for a new one!"