The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. US Oil giant Chevron announced plans to buyback $75bn worth of stock or 20% of its shares on issue (don't worry I didn't believe it at first either!)...so that's $75bn which won't be spent on increasing supply; Another reason to be BULLISH on OIL.
2. Thermal COAL price fell 11% sending the miners lower; prices above US$200 per ton still translates to huge cash flows for the sector. BUY the dips!
3. Aussie inflation rate is now running at 7.8%....there is a reasonable chance the RBA increases rates by 0.5% - just to really screw over the working class.
4. GOLD is hitting record highs in a stack of different currencies.
5. This looks like a BIG FAT RED FLAG for investors in any offshore commercial property funds....The big funds can FREEZE redemptions on the spot - remember the GFC?
This is how empty State Street is these days.
Chicago’s premiere shopping districts are suffering from crippling vacancies and an overall lack of activity.
— 16th & 17th District Chicago Police Scanner (@CPD1617Scanner) January 24, 2023
ASX Market Update
ASX 200 up 25 points to 7493
Buying in the BIG 4 BANKS and BHP were the major reason our market closed higher...On the negative side, COAL miners took a hit as thermal coal prices fell 11%; WHC down 6.6%, YAL lost 9.5% and NHC dropped 9%...I still think there is plenty of gains to be had in energy as the supply/demand situation is set be favorable to investors for years to come - my advice is to ride the swings (pick up HUGE dividends) and accumulate more on the dips!... Interesting to note that Stanmore (SMR) closed at a record high of $3.73 as MET COAL prices didn't fall. (I was a little surprised YAL got caught up in the selling because it sells both MET COAL + THERMAL so won't be impacted as much)
AVOID PFIZER shares...have a go at this piece of sh#t Pfizer scientist and what they are scheming. Pfizer is a company with NO MORAL COMPASS. (The below clip has gone viral...you know it is worth watching if GOOGLE and YOUTUBE have censored it).
BREAKING: @Pfizer Exploring "Mutating" COVID-19 Virus For New Vaccines
"Don't tell anyone this...There is a risk...have to be very controlled to make sure this virus you mutate doesn't create something...the way that the virus started in Wuhan, to be honest."#DirectedEvolution pic.twitter.com/xaRvlD5qTo
— Project Veritas (@Project_Veritas) January 26, 2023
The Day Ahead
- Our SPI is up 14 points
- Bitcoin FLAT @ $23,121 (Saturday morning price)
Movements affecting our resource stocks today (USD)
- BHP in the US down 1.9%
- Gold down 0.12% to $1927
- Paper Silver down 1.2% to $23.72
- Copper down 0.88% to $4.23
- Brent Crude down 1.8% to $86.66
- $A buys 71.03 US cents
Asian Market Update
CHINA SHUT, Hong Kong up 0.54%, Japan was FLAT
According to the Chinese folklore, the fifth day of the Chinese New Year is the birthday of the God of Wealth or "Caishen" in Chinese.
On this day, people clean their house and open all doors and windows to welcome the God of Wealth in the belief that he would bring more money. pic.twitter.com/euodbuI3pB
— CN Wire (@Sino_Market) January 26, 2023
Global Market Update
DOW up 28 points to 33,978
TECH stocks continue to rally hard after the huge selloff last year; Tesla was the standout after popping 11% as the market cheered on better than expected earnings - the stock has now surged 63% from its January 3 low.
FTSE FLAT, DAX up 0.11% and CAC was FLAT
ECB has currently set the lending rate at 2.5% - so money is still historically cheap as chips...what's going to happen when they double rates?
OUCH! Europe is facing a rapid contraction of mortgage lending as a jump in interest rates cause financing costs to surge, all but wiping out demand. Loans for house purchases fell below €5bn in Dec, a 70% decline YoY. https://t.co/Ar9JEYrF9i pic.twitter.com/8dP4cNPVKG
— Holger Zschaepitz (@Schuldensuehner) January 27, 2023
Key Market Summary