The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. The Canadian economy has officially entered a technical recession. Record migration and the mining sector hasn't been enough to stop the decline. Falling economy + rising prices means they are suffering STAGFLATION....Got to think that is an ominous sign for Australia considering we have similar economies.
2. At times Stockland (SGP) shares have been a great leading indictor for the direction of our residential property market.....Well SGP has fallen 16% since May (adding back the dividend), so let's see if property also dips.
3. Even the IMF is telling the RBA to raise rates.....Good chance that we get a hike on Melbourne Cup day.
4. Moons continue to align for the great copper shortage....Panama has just banned all new mining deals.... BUY WIRE
Canadian copper miner, First Quantum has exposure to Panama - nasty....
5. FED kept interest rates on HOLD
ASX Market Update
ASX 200 up 57 points to 6838
Despite our market making some reasonable gains there didn't seem to be much conviction behind the buying. Money found its way into IRON ORE miners and HEALTHCARE stocks....RIO added 2.4%, FMG put on 2.5% and RMD rallied 4%.
The Day Ahead
- Our SPI is up 11 points
- Bitcoin up 0.5% to $34,541
Movements affecting our resource stocks today (USD)
- BHP in the US up 1.5%
- Newmont down 0.3%
- Gold down 0.34% to $1987
- Paper Silver up 0.18% to $22.98
- Platinum down 1.3% to $932
- Copper up 0.23% to $3.65
- Brent Crude FLAT @ $85
- Iron ore up 2% to $121.55
Asian Market Update
Japan up 2.4%, Hong Kong FLAT, China added 0.14%
$110K a month for a rental in Singapore- are you kidding!?!...I tell you what - it would be nice to plough $110K into cheap SILVER every month instead : you'd become a gazillionaire when the big move comes around.
Singapore’s luxury housing market is cooling as one of the nation’s largest-ever money laundering scandals weighs on sentiment. https://t.co/WkMRCRHmYs
— Caixin Global (@caixin) October 31, 2023
Global Market Update
DOW up 221 points to 33,274
FED kept interest rates on HOLD @ 5.25% to 5.5%. Jerome Powell also gave an upbeat assessment of the economy.....Government continues to juice things up as debt levels surge - I think we are witnessing the most wasteful spending of all time.
Germans up 0.76%, Brits added 0.28% and Frenchies put on 0.68%
Aston Martin shares fell 9% after announcing a production cut and a bigger than expected quarterly loss.
How shareholders must feel in Aston Martin - stock has crashed 52% since August....OUCH!!