The latest market news, commentary and strategy by Adrian Rowney
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.
Got Copper?...Got Aluminium?
Will there be enough cables for the green energy transition? ⚡️— Stephen Stapczynski (@SStapczynski) July 30, 2023
🔌 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
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
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!"
Germans off 1.26%, Brits down 0.43% and Frenchies dropped 1.22%
Twiggy is responsible for exporting incredible amounts of lower quality iron ore to China which translates to significantly higher pollution in the steel making process, yet he acts all high and mighty....The guy is a 7th dan black belt in con-artistry!
Billionaire mining tycoon Andrew Forrest threatens to pull from UK due to British government new 'oil rush'. Instead, he says: "I will push my investments over to North America"
Please, someone show him a chart of US/Canada oil output vs UK North Sea https://t.co/LSJr9BF13f
— Javier Blas (@JavierBlas) August 1, 2023