The latest market news, commentary and strategy by Adrian Rowney
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5 Things that Grabbed my Attention
1. Chinese government bought another 23t of GOLD in October - accumulation continues.
2. Macquarie boss says the returns need to be bigger for investors in renewables - in other words she wants us taxpayers to increase the already obscene subsidies for the grift. Nothing Macquarie Bank does is good for the environment -they basically wrote the book on greenwashing.... GREEN = SCAM. AVOID Macquarie Bank shares.
3. Indian and German stock markets continue to make fresh record highs....What a combo that is; India has a rapidly growing economy while Germany is in recession and experiencing STAGFLATION.
4. Doesn't look like the market was happy with the complexity of Evolution's (EVN) new copper mine acquisition. Fortunately they managed to get the capital raising done to fund the deal @ $3.80...EVN closed down 13% to $3.60.
5. Pending homes sales in the US fell to the lowest level since records have been kept. Now that's even lower than when they completely locked down the economy for the sniffles.
ASX Market Update
ASX 200 up 116 points to 7178
Economic growth for the September quarter came in at 0.2% Vs 0.5% expected. The big miss was welcomed by investors as it takes the pressure off the RBA to hike rates when the board meets in FEB next year....Kind of funny how sometimes bad news is actually good news for stocks. Overall Aussies are getting squeezed with household incomes falling to the lowest level in 8 years - it truly is a crappy economy for most, which I think will only deteriorate. For us - I remain very optimistic with our investment positioning and think we are set for a glorious run with the metals and other commodities. We're entering a once in 50 year cycle.
Real Estate agents would be having a tough old time....Lowest sales EVER. YIKES!!....Nothing is normal anymore.
Pending home sales just hit their lowest level in history.— The Kobeissi Letter (@KobeissiLetter) December 6, 2023
In October, US pending home sales fell 1.5% putting sales down 6.6% over the last year.
This also marks the 23rd STRAIGHT decline in US pending home sales.
To put this in perspective, pending home sales are more than… pic.twitter.com/CQnXF2XgPS
The Day Ahead
- Our SPI is down 20 points
- Bitcoin up 0.86% to $44,035
- BHP in US up 0.82%
- Newmont down 0.14%
- Block Inc in US up 5.58%
Movements affecting our resource stocks today (USD)
- Gold up 0.5% to $2046
- Paper Silver down 1% to $24.20
- Platinum down 1.3% to $894
- Copper down 1.24% to $3.73
- Brent Crude down 3.73% to $74.32
- Iron ore up 2.2% to $131.85
Asian Market Update
Japan up 2%, China off 0.11% and HSI up 0.83%
The Indian stock market continues to make fresh record highs as its economy and companies within it grow....Plenty of Indian stocks look expensive Vs Asian peers, but the stronger growth outlook may actually warrant higher multiples. India's market is pretty much the inverse of Hong Kong which is in a nasty BEAR market.
On the ASX we have two listed Indian ETFs: IIND and NDIA.
Global Market Update
DOW down 70 points to 36,054
OIL prices took another hit overnight as shorts continue to pile in. The selloff happened to coincide with VLAD meeting up with MBS - Saudi Crown Prince.
— Javier Blas (@JavierBlas) December 6, 2023
What are these dudes so happy about?? Their OIL production cuts has been met with steep price declines while the US ramped up production....I think they know what is coming - the end of the PETRO DOLLAR (OIL is sold by the ARABS for USD). The game has changed and the consequences for the current world order and financial system will be profound......GOLD is set to play a central role in the transition away from the PETRO DOLLLAR.
I'm very BULLISH on GOLD & OIL.
Germans up 0.75%, Brits added 0.34% and Frenchies put on 0.66%
German stock market (DAX) rallied again to hit fresh all time highs and this is despite unemployment rising to 5.9% and it's economy in recession....A big wealth divide is opening up across Europe plus we are seeing mass migration as borders have been basically thrown open by the establishment. A violent era is coming for the EU - get the people fighting amongst themselves which will then result in screams for more government control and even greater intervention.
Key Market Summary