The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. DOW soared 701 points on the back of an unbelievably strong jobs report: +339K new jobs created last month.....I have been recently documenting US companies announcing mass layoffs, so this data is almost hard to believe....More rate hikes are coming in the US at a time when debt is through the roof.
2. Goldman's big downgrade of COPPER is getting plenty of airtime.....Never, EVER trust FREE research from Wall Street.....There is now a high probability that GOLDMAN traders have turned MEGA bullish on COPPER exposures - they just need to find a steady stream of suckers to SELL to them.
3. China has signed a massive 27 year GAS deal with QATAR....Another brilliant move from the Xi Man as he goes about securing China's future.
4. Minimum wage is going up by 5.75%....large corporates will be secretly licking their chops because the increase is less than the inflation rate and small/medium business will be hit much harder by the move.
5. Uranium is on the move....Great to see URNM rally 5.84% on Friday.....My crystal ball sees massive shortages and high demand for yellow cake!
ASX Market Update
ASX 200 up 34 points to 7145
Miners had a strong session rallying 2.4% while Financials dipped 0.2%....The minimum wage going up 5.75% is causing economists to increase their forecasts for more interest rates hikes, which in turn will put more pressure on those Aussies already struggling with chunky mortgages....I just don't see the need to be in FINANCIALS or CONSUMER DISCRETIONARY stocks right now. Just look at Adairs (ADH) for example - the stock tanked 14% on a very weak trading update - am I surprised? Not at all....the SQUEEZE is real.
The Day Ahead
- Our SPI is up 76 points
- Bitcoin up 1.2% to $27,177
Movements affecting our resource stocks today (USD)
- BHP in the US up 4.1%
- Newmont down 0.89%
- Gold down 1.56% to 1964
- Paper Silver down 1.22% to $23.69
- Platinum down 0.14% to $1008
- Copper up 0.59% to $3.73
- Brent Crude up 2% to $76.13
- Iron ore up 1% to $105.50
Asian Market Update
China up 0.79%, Hong Kong surged 4% and Japan put on 1.2%
Shares in property developers took off on news the Xi Man was going give the struggling sector a boost.
Global Market Update
DOW up 701 points to 33,762
US stocks surged on the back of a red hot JOBS number. The creation of 339K new jobs last month sounds too good to be true....Anyway - investors were chomping at the bit to get into the market once the news hit.
Germans up 1.25%, Brits added 1.56% and Frenchies surged 1.87%
Oil/GAS and mining stocks were the standout performers on the UK market....Glencore put on 4%, BP added 2.68% and Shell closed 2.05% higher.....Shaping up to be a strong Monday for our miners on the ASX.
Key Market Summary