Viewpoint: Bullish
Uranium prices have been rallying with spot trading ~$US63.50, the highest level since before the devasting events in Fukushima in March 2011. As countries around the world look to address their carbon footprint, nuclear energy is gaining traction as a viable part of the equation. The Sprott Physical Uranium Trust held in the MM Macro ETF Portfolio has also been a dominant factor in the equation. This vehicle buys and holds…
We bought Audinate late last year looking for an improvement in the semiconductor market to help support growth. While demand has been resilient, and Audinate has done well to relieve supply chain pressure, supply, or lack thereof, of chips, continues to bug the market. Shares traded to an 18 month low yesterday and have been underperforming the Philadelphia Semi-Conductor Index…
Gold stocks generally and Newcrest specifically have been in the naughty corner for what feels like an eternity as Gold failed to make any sustained headway over the past 6 months. As discussed earlier in the week, we are now bullish on Gold and feel like our patience will be rewarded in NCM. Mining stocks trade on a multiple of their net present value (NPV), a bullish multiple would…
The S&P gave up early gains overnight to finish lower, commodities & energy did well offset by weakness amongst the financials and life science stocks.
Early optimism in equities was foiled overnight following a rally in Crude Oil pushing Brent back up through $US100/bbl. As MM alluded to earlier in the week, Chinese authorities are getting poised to stimulate their economy to offset the impact of Covid induced lockdowns. The big price swings in Oil this week highlight how tight the market has become. We think Oil has seen its peak for now however it’s entered a new trading equilibrium, with strong buying support below $US100/bbl.
This week sees the start of the US quarterly reporting season, six banks reporting results starting with JP Morgan (JPM US) tonight. The quarter has been an extraordinary one in terms of market volatility, US stocks fell ~15% early on before staging a strong recovery while commodity price volatility has been off the charts. Trading volumes should be very high offset by a significant reduction in completed deals. The read-through from US banks will be important for Macquarie in the near term.
The ASX200 disappointingly reversed some early optimism yesterday to close down 0.42% however there was a lack of interest in the market shown through light volumes ahead of the Easter break. Despite this continued consolidation, MM’s view is unchanged into the end of April / early May:
US stocks struggled overnight with some obvious nerves ahead of a very important inflation print due out this evening, while US quarterly reporting gets underway in earnest. For US stocks to find their groove again, we need stabilisation by both inflation and bond yields – we believe it’s close at hand but there are no definitive signs yet.
It’s been a very busy 9 months for the big Australian starting with the unification of its structure and we’re now approaching the divestment of its petroleum division which is due for completion in June. Woodside released their documentation to the deal on Friday with the key details as follows:
