The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. The volatility index (VIX) which is also known as the fear index, surged a whopping 17% last night on Wall Street….Our ASX 200 futures are getting smacked are are down a whopping 176 points!
2. Bank of England cut rates by 0.25% to 5%.
3. URANIUM stocks were smashed in overnight markets – URNM fell 8%….Nothing has fundamentally changed at all! BUY
4. According to Core Logic, NZ house prices fell for the 5th straight month. Rising unemployment and the weak economy is putting the squeeze on some of our Cuzzy Bros.
5. United, Delta and British Airways have cancelled all flights to Israel…..With the threat of a major war in the Middle East I’m surprised OIL hasn’t surge – I think a big move higher is coming.
ASX Market Update
ASX 200 up 22 to 8114
Thanks to the strong performance in commodities markets our miners rallied. One of my top energy picks looks like it is about to come to life again – Karoon (KAR) put on 3.75% to $1.94; the stock is cheap and there is potential for some good dividends to roll in. BUY…….Elsewhere Alcoa (AAI) added 3.76%, ETPMPD rallied 4% and CHN put on 2%
Random Observation
This is classic…definitely not my style, but I bet they sell out quickly.
The Day Ahead
- ASX futures are down 176 points.
- Bitcoin down 3.5% to $63,241
- BHP in US down 2.53%
- Newmont in US up 0.92%
- URNM in the US down 8.31% (BUY)
John is not losing any sleep over the move….
Movements affecting our resource stocks today (USD)
- Gold up 0.56% to $2486
- Paper Silver down 1.24% o $28.58
- Platinum down 1.59% to $970
- Palladium down 2.83% to $899
- Copper down 2.5% to $4.07
- Brent Crude down 0.62% to $80.22
- Iron ore up 1.3% to $102.35
Asian Market Update
Japan down 2.49%, Hong Kong off 0.23% and China dipped 0.22%
It was a good day for commodities….
Global Market Update
US Market
DOW down 494 points to 40,347
Volatility is definitely back as the market started to fear that rate cuts are coming to counter a coming recession….I personally think we are headed for an era of STAGFLATION in the WEST which is why GOLD increased overnight.
*Stagflation is rising prices with a weakening economy.
European Markets
Germans off 2.3%, Brits fell 1% and French lost 2.14%
Shares in major French bank Societe Generale tanked 8.97% after downgrading it’s outlook….There is definitely no need to be chasing financials at the moment.
Key Market Summary
