Read the Weekend Edition
Jonathan (MPC Markets) is joined by Kai while Mark takes the Golden Edition out on Sydney Harbour. We cover a big week across tech, commodities and Aussie macro.
This week’s pulse
- Amazon leads: Profits powered by cloud. The AI/compute “picks & shovels” trade keeps delivering.
- Japan pops: Nikkei outperforms on prospects of looser policy and a weaker yen.
- Australia CPI surprise: 3.5% YoY vs 3.1% expected — local rate-cut hopes fade.
- Fed “hawkish cut”: -25 bps, but Powell cools talk of multiple near-term cuts. Mixed reaction across indices.
- Market internals: Mega-cap strength masks narrow breadth; it’s still a very stock-specific tape.
Themes & names
- AI infrastructure > everything else: Cloud/data-center demand remains the safer end of the AI spectrum.
- Quantum computing: Fascinating, but still early for commercial impact.
- IBM bounce: A reminder that “old tech” can benefit from new compute narratives.
Commodities & crypto
- Gold (AUD): Ran to ~4,400, retraced to ~3,900, now circling ~4,000. Expect chop in a 3,800–4,200 range as macro heat cools.
- Uranium: Standout strength. Watching producers and tech enablers; Silex’s enrichment progress is notable.
- Bitcoin: Losing some momentum short-term; “boredom risk” as institutions tame volatility.
ASX focus
- CSL: Vaccine headwinds hurt, but plasma remains solid — debate now is whether the selloff overshot value.
- Trade of the Week — BM1 (Ballard Mining):
- Premium placement at 55c (~$20m to one party; chair also subscribed) funds an extensive drill program. Existing resource, goal to extend mine life. We like the risk/reward with smart money stepping in.