The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. RBA is very likely to keep interest rates on HOLD today.
2. Around 30% of Chinese stocks went limit down on Monday.
3. We were led to believe that Saudi Arabia had officially joined the BRICS, but that may now not be the case.
4. Biden has ordered more attacks on the Houthis in Yemen….The RED SEA shipping channel is not going to open back up anytime soon. Inflationary effects will be felt across the world.
5. Silver Lake (SLR) and Red 5 (RED) are merging….M&A in the GOLD sector is going to have another big year.
ASX Market Update
ASX 200 down 73 points to 7625
Investors knocked our market down from it’s record high reached on Friday on fears that reporting season is not going to be a good one on the ASX….I think there is a reasonable chance a large number of corporates will be talking about how hard it is to maintain margins in this inflationary environment (despite how experts keep telling us that inflation is falling!)
Random Observation
On Friday, Meta had the largest single day dollar value gain of all time when the stock surged 20%.
But exactly one day before the record setting gains, Zuckerberg’s company was exposed in a US senate hearing….It’s messed up – watch:
The Day Ahead
- SPI is down 31 points
- Bitcoin down 0.2% to $42,728
- BHP in US down 2.5%
- Newmont down 2.54%
- Rio in London down 1.2%
Movements affecting our resource stocks today (USD)
- Gold down 0.5% to $2043
- Paper Silver down 1.4% to $22.47
- Platinum up 0.6% to $907
- Copper down 1.25% to $3.77
- Brent Crude up 0.87% to $78.00
- Iron ore down 0.5% to $125.70
Asian Market Update
China down 1%, Hong Kong off 0.15%, Japan up 0.54%
Crazy session in China!…Time will tell if this is a bottom – but I like IZZ ETF which is the China Top 50 listed in Hong Kong – it’s more than 50% below it’s high.
Global Market Update
US Market
DOW down 237 points to 38,419 (hour to go)
US government BONDS sold off as inflationary pressures rise….There is no way we are going to see 6 rate cuts this year unless Armageddon breaks out.
Macdonald’s shares fell 4% after blaming the war between Israel and Hamas for a lower than expected revenue as Muslims boycotted the junk food chain.
European Markets
Germans, Brits and Frenchies were FLAT
EVs are toast without massive government intervention/subsidies/mandates…..EVs fail on every single metric from environmental through to running costs – I think people are beginning to wake up to this reality.
Key Market Summary
