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The Good Morning Report

Posted on February 6, 2023

The latest market news, commentary and strategy by Adrian Rowney 

5 Things that Grabbed my Attention

1. AFR reported on Sunday night that either Barrick or Newmont have approached Newcrest (NCM) with a takeover bid....NCM have hired defense advisors - don't know why: the answer from the board should be a BIG FAT NO!!! ....NCM likely to rally this morning on the speculation. BUY last sale $22.45

2. The US economy absolutely smashed expectations by adding a whopping 517K jobs in January Vs 187K expected.....Money gushed into the USD while metals and stocks sold off.

3. Mining giant Glencore announced it's SILVER production fell 25%.... meanwhile...SILVER fell 5% on Friday night despite the looming shortages....Keep accumulating!

4. Metallurgical COAL (needed to make steel) is rising in price : this is great news for YanCoal (YAL) and Stanmore (SMR).

5. Warren Buffet's right hand man - Charlie Munger - has called for crypto to be banned in the US.

ASX Market Update

ASX 200 up 47 points to 7558

In what should give a little comfort to property investors and home owners, we saw Stockland (SGP) continue its recovery rally....At times SGP has acted as a good leading indicator of where property is headed so to see it bounce 30% since September, is something to pay attention to. How aggressively the RBA hikes from here will obviously have a major impact, but perhaps the market is now thinking Dr Phil is not going to stick the boot into borrowers as hard as previously thought.

Random Observation

US DEBT only knows one way - UP!....Kind of funny that the American Government is acknowledging that they NEVER intend on paying back the debt.....AVOID US GOVERNMENT BONDS.

 

The Day Ahead

  • Our SPI is up 12 points
  • Bitcoin down 1.7% to $23,392 (Saturday morning price)

Movements affecting our resource stocks today (USD)

  • BHP in the US down 0.7%
  • Gold down 2.75% to $1877
  • Paper Silver down 5% to $22.39
  • Copper down 1.48% to $4.08 (despite a pile of inventory leaving the COMEX - it's just about empty!)
  • Brent Crude down 3.4% to $79.94
  • $A fell 2.26% and now buys 69.19 US cents.

Asian Market Update

China down 0.68%, Hong Kong lost 1.36% and Japan put on 0.39%

Hindenburg research put out a report last week claiming Adani Enterprises is the 'largest CON in corporate history'....The stock got absolutely flogged - it did however close up on Friday by 1.8% after being down 35%.

 

Global Market Update

US Market

DOW down 127 points to 33,926

Stephen says it is the equivalent of $937 per barrel of oil....YIKES!!....Hope you are starting to realize that things are not going back to normal - we have entered the CRAZY ERA. 

European Markets

Brits up 1%, Germans down 0.21% and French put on 0.94%

Can you believe the UK stock market just hit a record high as the working class get kicked for six by rampant STAGFLATION?

Key Market Summary

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