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The Good Morning Report

Posted on May 4, 2023

The latest market news, commentary and strategy by Adrian Rowney 

 

5 Things that Grabbed my Attention

1. Kremlin has been hit with two drone strikes in a failed attempt to take out Vlad.....WW3 is no longer crazy talk & Zelensky is dead man walking....I'm surprised that GOLD is only up a touch and OIL is down 4%. 

2. FED increased interest rates by 0.25% to take the target rate to 5% - 5.25%.

3. Global packaging giant, Amcor (AMC) issued a profit warning sending the stock down 9.7%...I wouldn't be buying it here.

4. CoreLogic reported that rents across our major capital cities has risen 11.7% over the past 12 months....I think you should consider yourself lucky if your rent only went up by 11.7%!

5. Lithium has rallied 7% over the past few sessions - its first set of gains in months!...Perhaps the bottom is in.

ASX Market Update

ASX 200 down 70 points to 7185

Well it was a pretty decent session for us with the gold miners having a bit of a run and the SILVER & GOLD ETFs putting on a bit over 2% each....Elsewhere, packaging giant Amcor (AMC) forecasted some trouble ahead - it's shares fell 9.5%. AMC is not one of my recommended stocks and won't be unless it gets really savaged.

Random Observation

WTI Oil futures collapsing to negative $37 at the height of the COVID panic is one of the craziest things I have ever seen in the market....I truly couldn't believe my eyes when I opened my Bloomberg App that morning.

WTI OIL futures are deliverable, so due to plunging demand and over supply at the time, there was nowhere to store it - thus traders were forced to pay to dump their obligation....WILD!!

The Day Ahead

  • Our SPI is FLAT
  • Bitcoin down 1.5% to $28,338

Movements affecting our resource stocks today (USD)

  • BHP in the US up 0.87%
  • Gold up 0.4% to $2031
  • Paper Silver up 0.18% to $25.67
  • Platinum down 1.4% to $1062
  • Copper FLAT @ $3.86
  • Brent Crude down 3.7% to $72.38

Asian Market Update

Japan up 0.12%, China SHUT, Hong Kong down 1.18%

Where ever you look these days, nations are cutting out the USD for cross border trade....The times they are a-changin'.

Global Market Update

US Market

DOW down 270 points to 33,414

Jerome Powell increased rates to 2006 levels....Do any of you still remember what happened back then or have you blanked it out because it was too painful??

European Markets

Germans up 0.86%, Brits added 0.2%, Frenchies put on 0.28%

European investors not phased at all over the drone attack on the Kremlin....

 

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