The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. US government debt just cracked $35 trillion….Doesn’t matter who wins the election in November, congress is not going to stop it snowballing….Interest on the debt alone is now running at over $1.14 trillion pa.
2. Aussie bankers are now pushing for 50 year mortgages…..Great way to properly enslave a generation.
3. Hyundai said it plans on expanding their hybrid lineup as demand for it’s EVs fall….The EV industry looks like a train wreck as just about every major auto pivots away from these crap cars…..PLATINUM/PALLADIUM should be the big winners as these precious metals are needed to make the catalytic converters that go into normal petrol/diesel and hybrids.
4. Alumina (AWC) shareholders will receive 0.02854 new Alcoa (AAI) for each AWC held…..It should take a few days for the new AAI to show up in accounts.
5. Nvidia fell another 7% overnight and is now down around 25% since the CEO and founder signed that chick’s boob….Pretty funny if that was the top!
ASX Market Update
ASX 200 down 36 points to 7953
Fortescue (FMG) was the major drag on the market after Capital Group sold $1.9bn worth of the stock at $18.55. JP Morgan handled the transaction, so would have dished out the stock to all their institutional clients….FMG closed down 10% to $18.28 and has now fallen about 38% from it’s all time high reached at the beginning of the year.
Random Observation
Existing LITHIUM miners will be praying that people power stops RIO’s mega mine in Serbia from going ahead as the market is already well supplied….
The Day Ahead
- ASX futures up 26 points
- Bitcoin down 1.6% to $66,200
- BHP in US down 1.6%
- Newmont in US up 0.27%
- URNM in US up 1.32%
Movements affecting our resource stocks today (USD)
- Gold up 1.25% to $2407
- Paper Silver up 2.38% to $28.53
- Platinum up 1.45% to $971
- Palladium down 0.71% to $881
- Copper up 0.29% to $4.09
- Brent Crude down 0.76% to $79.02
- Iron ore down 2.4% to $99.74
Asian Market Update
Japan up 0.15%, Hong Kong off 1.37% and China down 0.43%
Japs are working out they have to get lean and mean to compete against the Chinese automakers….
Global Market Update
US Market
DOW up 203 points to 40,743
The below could end up being an iconic moment in history that indicated the top of the crazy Nvidia bubble. And at the time Jensen, while acting like an 80s rockstar, had his broker offloading millions worth of stock as his fans feverishly loaded up!
European Markets
Germans added 0.49%, Brits off 0.22, French put on 0.42%
Shares in Diageo which is the owner of iconic alcohol brands such as Johnny Walker, Guinness and Smirnoff, fell 5% after posting earnings that came in below expectations. The market was a little concerned that the Yanks were buying less of their booze (I’m guessing they were going for cheaper alternatives rather than sobering up!)
Key Market Summary
