The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. China announced it’s CPI went negative 0.8% over the past year – which is DEFLATION (different to falling inflation)…. I wouldn’t be surprised to see the PBOC crank the money printer even further.
2. Plenty of financials are battling….Platinum Asset Management (PTM) just hit a fresh all time low on the back of fund outflows.
3. Rising OIL prices spells big trouble for bonds….Careful out there as the finance world is selling all sorts of “income opportunities”. Banksters have got so much crap they need to palm off before the coming storm.
4. AFR reported that the cost to refurbish the RBA‘s head office has blown out from their original estimate of $260 mil to an eye popping $850 mil. The RBA is blaming the amount of asbestos that needs to be removed….A 226% increase – are you kidding me – these are the people calling the shots on the economy. Sack the lot of them….NOW!!
5. Charter Hall Long WALE REIT (CLW) wrote down the value of it’s commercial property portfolio by another 4.5% or $306mil….NTA is $5.19 so looks cheap Vs last sale of $3.89 – but gearing is high and they are looking to dump about $500 mil worth of properties to fix the balance sheet.
ASX Market Update
ASX 200 up 36 points to 7617
Our market pushed higher on the back of strength in property and banks stocks. With pretty much every property REIT trading at a discount to NTA, investors were hunting for bargains. The sector is definitely not without risk as an unexpected rise in interest rates could wreak havoc….MGR rallied 4.67%, CLW put on 3.2% and CMW added 2.53%
Random Observation
Market couldn’t care less….(until it does, then look out!)
The Day Ahead
- SPI is down 4 points
- Bitcoin up 3.4% to $45,531
- BHP in US down 0.7%
- Newmont in US down 0.9%
- RIO in London down 0.6%
Movements affecting our resource stocks today (USD)
- Gold down 0.16% to $2048
- Paper Silver up 1.3% to $22.65
- Platinum up 0.88% to $894
- Copper down 0.76% to $3.70
- Brent Crude up 3.26% to $81.79
- Iron ore up 2.2% to $127.80
Asian Market Update
Japan rallied 2.06%, Hong Kong off 1.27% and China up 1.28%
Great news – old mate Nutella from Microsoft is still going to need plenty of slaves to run AI on his quest to takeover the world!…And there I was thinking AI would just do everything itself.
Global Market Update
US Market
DOW up 48 points to 38,726
At one stage during the session, the S&P cracked the big 5000 point market for the first time ever….Disney shares were one of best, rallying 11.5% after BEATING quarterly earnings estimates.
European Markets
Germans up 0.25%, Brits dipped 0.44% and Frenchies added 0.71%
Shipping giant Maersk tanked 15% after warning of uncertainty in it’s business due to the chaos in the Red Sea. The company also warned of a shipping oversupply that could last until 2026.
Key Market Summary
