The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Major Chinese banks have set up platforms allowing customers to transfer savings to GOLD....Meanwhile we can't export GOLD fast enough in our thirst for fiat currency created by the stroke of a keyboard...Calling us STUPID would be the understatement of the century.
2. RBA's rate hike last week did nothing to dampen property auctions over the weekend....Rates are going much higher - don't believe those economists who are saying otherwise.
3. Jim Chalmers went easier than expected on OIL and GAS companies....Woodside (WDS) will take a bit of a hit, but Santos (STO) and Beach (BPT) will hardly be affected....all 3 stocks are a BUY - way more confident now this taxation issue is out of the way.
4. Lithium prices in China have now bounced around 30% from the low last month....Lithium miners should continue to push higher.
5. Warren Buffet on bankers at his annual meeting: "If you run a bank and screw it up you're still a rich guy. The country clubs don't drop you...the world goes on, and that is not a good lesson."
ASX Market Update
ASX 200 up 57 points to 7277
I have been banging on a fair bit lately about rare earths miner Lynas (LYC) , so it was great to see it rally 12.8% after receiving a favorable ruling in Malaysia....Over the next six months or so, I am anticipating that LYC will go on to test its all time high of $11.39....RIO or BHP should really be making take over bid for it right now.
LYC also went on to say there are legal avenues to get it extended beyond 2024....By the looks of it, the Malaysian government doesn't want to get out of the rare earths business; it's far too lucrative for them.
Wouldn't want to be bearish OIL....
The Day Ahead
- Our SPI is down 2 points
- Bitcoin down 5% to $27,472
Movements affecting our resource stocks today (USD)
- BHP in the US up 0.5%
- Gold up 0.21% to $2029
- Paper Silver down 0.5% to $25.80
- Platinum up 1.47% to $1084
- Copper up 1.14% to $3.93
- Brent Crude up 2% to $76.82
Asian Market Update
#Chinese #carmakers open higher on Mon after State Council approved measures for supporting NEV sales in rural area.
Data from industry body showed China's car exports surged 1.5 times y/y in Q1 and China's retail sales of NEVs jumped 87% y/y.https://t.co/haGgRmRP6L pic.twitter.com/uh742SeTDA
— YUAN TALKS (@YuanTalks) May 8, 2023
Aussie lithium miners had a very strong session on the back of this...CXO rallied 6.7%, PLS added 4.5% and IGO put on 3.55% - Giddy up!!
Global Market Update
DOW down 51 points to 33,618
Definitely not surprised....
Key Market Summary