The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. RBA increased interest rates by 0.25% with more coming down the pipe...I guess Dr Phil doesn't want property prices to climb too high before the new arrivals touch down!
2. The size of the bank failures already this year in the US has eclipsed the GFC (and it's still early days!)....PacWest Bancorp crashed 25% last night - could be the next one to go.
3. FED announces its decision on interest rate tomorrow. Will Jerome Powell hike into this banking crisis??
4.Wholesale electricity prices in NSW have surged since AGL shutdown the Liddell coal fired power station....Consumers can look forward to much higher prices in the future - that's a guarantee!
5. Pay attention - it's starting....IBM announced it is replacing 7800 positions with AI.....and it was only the other week that Moderna & IBM decided to team up with this:
Don't worry...the combination of mRNA, quantum computing and AI make perfect sense (for the demonic globalists that is!)
ASX Market Update
ASX 200 down 67 points to 7267
Dr Phil surprised with a 0.25% rate hike to 3.85%...The bond market was pricing in that the RBA was done with rate increases this year and the next move would be a cut around December......To those that tell me the "MARKET IS NEVER WRONG"....I say, NO the market REGULARLY gets it wrong!
Anyway - Aussies are continuing to get squeezed, property will unlikely rocket before the new arrivals touch down and more people will be looking for government assistance to make ends meet (which will warm Albo's socialist heart).
"Enjoying the GREAT RESET yet?....Hook, line and sinker...suckers...HAHAHA - now get your booster!!!"
This is going to be very interesting to watch....Although I am not getting my hopes up for the people of Zimbabwe as the government is super corrupt.
The Day Ahead
- Our SPI is down 51 points
- Bitcoin up 1.57% to $28,593
Movements affecting our resource stocks today (USD)
- BHP in the US down 2%
- Gold up 1.67% to $2025
- Paper Silver up 1.55% to $25.62
- Platinum up 0.84% to $1073
- Copper down 1.56% to $3.87
- Brent Crude down 4.93% to 75.40
Asian Market Update
Japan up 0.12%, Hong Kong added 0.2% and China was SHUT
Now this is really surprising to me....Xi Man was supposed to be cranking things right up after the lockdown....Looks like China has hit a snag.
#China's #steel industry slipped deeper into contraction, with PMI falling to 45% in Apr, down 3.4 ppt from Mar and falling for 2nd straight month, according to China Federation of Logistics & Purchasing.https://t.co/eOYUO3GHZh pic.twitter.com/OevbCzLCK5
— YUAN TALKS (@YuanTalks) May 2, 2023
With steel demand and production down, it is easy to see why hard coking coal and iron ore have been on the nose of late.
Global Market Update
DOW down 350 points to 33,702
Does this PacWest Bancorp chart indicate to you the banking crisis is over or contained?....If it does, then I want to know how much you are spending on CRACK per week.
Germans fell 1.23%, Brits off by 1.24% and Frenchies lost 1.45%
BP shares fell 7.72% after reporting it's quarterly profit came in lower than expected.
Key Market Summary