The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. US government just added $275bn of debt in one day....the FED's digital money printer is likely to be fired back up soon.
2. I think OIL prices falling 5% saved the BOND market overnight from a meltdown....You see rising OIL prices is inflationary and rampant inflation crushes BOND markets - just think: why would you lend the government or corporate $100 for say 5 years if the purchasing power of that $100 is going to be considerably less in 5 years? You wouldn't - which is why bonds get smashed with inflation.
3. Bank of America (BoFA) shares continue to fall...now down a whopping 47% since January 2022. I seriously don't know what Warren Buffet sees in this bank as he sold most of his others. AVOID FINANCIALS
4. RBNZ kept interest rates on HOLD @ 5.5% - I'm very surprised our rates are not at least that.
5. BOM issued flood warnings for southern NSW and eastern Victoria...So much for their El Nino drought forecasts that they have been freaking everyone out with.... Any forecasts the BOM makes beyond 7 days should always be taken with a grain of salt ....Agriculture stocks likely to have a little run from here.
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ASX Market Update
ASX 200 down 53 points to 6890
Financials fell by 1.6% as pressure on the global banking system mounts...I dare say that as BONDS continue to get thumped, bank executives would be crapping their pants as collective losses (if mark-to-market) must be off the charts....AVOID FINANCIALS like the plague and definitely don't get sucked in if we see a little bounce. Also be very wary, as product providers/financial experts/ banksters etc are pushing like buggery to get investors buying BONDS to support the market. But this is not the time to be chasing income.... I repeat....THIS IS NOT THE TIME TO BE CHASING INCOME.
Big question is - can the US government continue to find suckers to invest in US Treasuries to fund this ticking time bomb or will the FED crank up the money printer to pick up the slack?....I predict they print.....BUY ETPMAG, ETPMPT & PMGOLD
The US added - checks notes - $275 billion in debt in, uh, ONE DAY— zerohedge (@zerohedge) October 3, 2023
Total US debt is now $33.442 trillion, hit $33 trillion just 2 weeks ago, and on pace to rise by $1 trillion in 1 month.
WTF is going onhttps://t.co/tOrhqmkFXL pic.twitter.com/w3qnBAIfLh
The Day Ahead
- Our SPI is up 9 points
- Bitcoin up 1.43% to $27,709
Movements affecting our resource stocks today (USD)
- BHP in the US up 0.2%
- Newmont up 0.3%
- Gold down 0.4% to $1833
- Paper Silver down 1.37% to $21.08
- Platinum down 0.68% to $873
- Copper down 1% to $3.58
- Brent Crude down 5.37% to $86.06
Asian Market Update
Japan down 2.28%, Hong Kong off 0.78%, China SHUT
I saw this the other day....not good....second wave of inflation is going to be soul destroying for many.
— Nikkei Asia (@NikkeiAsia) October 1, 2023
Global Market Update
DOW up 127 points to 33,129
A big fall in OIL prices came as a huge relief for STOCKS and BONDS. A surprise build in US OIL inventories helped knocked prices down 5%.... I also wonder - did the Biden administration drain more from the Strategic Petroleum Reserve?
Germans up 0.1%, Brits off 0.77% and Frogs were FLAT
GOLDMANS is out spruiking renewable energy stocks that are total crap...Remember, the trade ideas they throw out to public for free are the ones they are selling...GREEN = SCAM = AVOID
Key Market Summary