Trader’s diary: everything you need to prepare for the week ahead

  • Markets had another anguished week, the ASX more than held up globally
  • Chinese lockdown is timid and central banks take center stage
  • Six new names set to debut at ASX this week

Major Economic Headlines Last Week

Markets faced more music last week, an old tune with a rate-hike beat and the blues of Chinese lockdowns.

The good news for our resource-laden equity markets was Friday’s vague but off-the-cuff statements about more market stimulus coming from Beijing.

The details are slim, but the assurances are not only in the wind: Chinese economic authorities only say what they think – investors can therefore count on support from vulnerable sectors (real estate, construction, retail and above all technology) and some tips for boosting domestic consumption – most of which bode well for an Australian market rich in the raw materials that form the building blocks of so many Chinese creations.

In the United States, the tech-rich Nasdaq has taken on more water, just as its messiah Elon Musk has taken over more of what makes him tick (or tweet). The Nasdaq is now down 23% from its all-time high, while broader US stocks are down 3.3% for the week and 14% from early January highs.

We’re still a hell of an equity outperformer here. We might be flat for 2022, but aside from Brazil and Canada (both commodity-producing countries), we’re kicking around the world.

Dr Shane Oliver, Chief Economist and Head of Investment Strategy at AMP Capital, the ASX pep talk is quite simple – keep your head up, because your high exposure to resources and low exposure to technology make you a relative winner in 22 .

“Our base case for investment markets remains that the US, global and Australian recession will be averted for at least the next 18 months, allowing stock markets to have reasonable returns over a 12-month horizon. However, last week was a reminder that near-term risks from inflation, rate hikes, war in Ukraine and Chinese growth remain high, which of course has led to greater volatility in the markets. markets, with U.S. stocks falling back to March lows and Nasdaq and China stocks making new lows.

Elsewhere last week, the Russian president played his gas card against Poland and Bulgaria, deftly and easily sowing the seeds of European discord, while the flow of arms and support from America to Ukraine make NATO resistance look like an American proxy war. President Joe Biden has actually signaled his intention to bleed Russia’s strength.

The investment markets will therefore be far from having put this “black swan” to bed.

So looking ahead, the Fed and Bank of England should raise interest rates instead, although the Poms should win this particular contest. The Reserve Bank of Australia (RBA) is feeling the heat to get things done this week, rather than waiting for it all to be over (elections and such) in June. It will also be a busy week for employment data.

But the main spotlight will be on the Federal Reserve, which is almost ready for a 50 basis point hike on Wednesday.

The move appears to be the first of many in this cycle and Powell Speaker Jerome hasn’t been home to talk dove lately.

OPEC holds its monthly meeting, but with energy prices moving like a George A Romero zombie, that they surprise and pump more oil is a talking point worth discussing on a lounge chair , heading to the new world on a large unsinkable boat symbolizing all the pride of a world in love with its new ability to bend the planet to its will.

Things also cost more. Our scene now turns to the May RBA meeting for some rate hike action.

Economic calendar for this week

Sources: Westpac, Commsec.

Australia

MONDAY

Final Manufacturing PMI
CoreLogic House Pricing
Melbourne Index Inflation Gauge
Job vacancies and food prices

TUESDAY
The Reserve Bank Board of Directors meets to get all the information on the exchange rate

WEDNESDAY
Australian End Services PMI
ABS Retail Sales and Home Loans

THURSDAY
Commercial and construction ABS applications

FRIDAY
Reserve Bank SoMP

International calendar

United States (AEDT)

MONDAY
PMI & Manu final manufacturing. ISM

TUESDAY
Jerks and Factory Orders

WEDNESDAY
Data ADP Employment
Commerce, End Services PMI
ISM & FOMC Services

THURSDAY
1Q Productivity and claims

FRIDAY
NFP/Employment

Europe (AEDT)

MONDAY
Eurozone final manufacturing PMI
EU Econ./Ind./Services Confidence read

TUESDAY
UK End Manufacturing PMI
Retail sales in Germany

WEDNESDAY
BoE and MPR policy meeting
UK Final Services PMI Germany Trade and Final Services PMI
Retail sales in the EU

THURSDAY
Factory orders in Germany

FRIDAY
Germany Industrial Prod.

And according to the ASX, these companies list:

Allup Silica (ASX:APS)

Registration: May 2

IPO: $5 million at $0.20

This explorer is focused on his silica sand buildings – and has high hopes for the product which is essential for the manufacture of photovoltaic (solar) panels and other vital industrial applications.

The company owns the Unicup, Antwalker, Pipeclay Tree, Esperance and Argyle projects in WA.

Sarama Resources (ASX:SRR)

Registration: May 2

IPO: $8 million at $0.20

This West African gold explorer is already listed on the TSX and aims to develop its flagship Sanutura project in Burkina Faso.

But Sanutura is already quite big, with mineral resources of 2.9 Moz, including 9.4 Mt at 1.9 g/t for 600,000 oz in the indicated category and 52.7 Mt at 1.4 g/t for 2.3 Moz inferred.

The company has 50,000m of mostly extension drilling planned over the next 12 months.

Solstice Minerals (ASX:SLS)

Registration: May 2

IPO: $12 million at $0.20

100% subsidiary of OreCorp (ASX:ORR), Solstice owns OreCorp’s interests in four WA assets; the Yarri, Kalgoorlie, Yundamindra and Ponton projects.

Going forward, OreCorp’s existing core business will focus on the Nyanzaga project in Tanzania, with Solstice Minerals focusing on the WA assets – which are promising for orogenic-style gold mineralization – with the Kalgoorlie project also prospective for the nickel sulphide mineralization hosted in komatiite.

Sierra Nevada Gold (ASX:SNX)

Registration: May 3

IPO: $12.5m at $0.50

This explorer is building a pipeline of precious and base metal discoveries in Nevada, USA.

Its portfolio includes the Blackhawk polymetallic silver-gold epithermal discovery and the Blackhawk porphyry copper-gold discovery.

SNG also has the Warrior, New Pass and Colorback gold projects.

Approximately 12,000 m of drilling is planned over the next 12 months.

Southern Cross Gold (ASX:SXG)

Registration: May 5

IPO: $10 million at $0.20

This gold explorer is focused on revitalizing the Victorian goldfields, home to Fosterville and Costerfield, two of the richest underground deposits in the world.

The company is a spin-out of Toronto Stock Exchange-listed Mawson Gold, which is now a Nordic-focused gold exploration company and owns the Rajapalot gold-cobalt project in northern Finland.

SXG operates the Sunday Creek, Redcastle and Whroo projects in Victoria, as well as the Mt Isa polymetallic project in Queensland.

Chrysos Corporation (ASX:C79)

Registration: May 6

IPO: $183.5m at $6.50

This analytics player combines science and software to create technology solutions for the global mining industry.

Its flagship product PhotonAssay was originally developed by Australia’s national science agency, CSIRO, and provides faster, safer, more accurate and more environmentally friendly analysis of gold, silver and additional items.

The company says technology has quickly replaced slower, more dangerous and expensive processes to become the most innovative and valuable analytics solution in the mining industry.

They are so interesting, Josh Chiat has it all here.

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