ANDIKA BULLETin 30 MAY 2024

Aussie Stocks were under pressure from the outset yesterday, thanks to a hotter-than-expected monthly inflation read didn’t help, with the ASX taking another leg lower after the data dropped showing inflation is slowly increasing to 3.6%.

With an overbought mkt it was easy to see the ASX200 tank 101 pts yesterday.

With a negative US lead, the ASX will have another hit today - probably around 65pts.

Even the Germans last night had a hotter than expected inflation print which sparked a further hawkish shift lower in rate-cut expectations in the US with 2024 falling back to a 50-50 coin toss for 2 cuts or 1; and 2025 tumbling to less than 3 more cuts...

So the message here is simple - No Rate Cuts and get ready for potential rate hikes.

Higher yields in Australia and in the US are starting to hit stocks and with hardly any BTFDers we're starting to witness both here and in the US almost non-stop selling from the cash close last night. 

The only exception in the US is Nvidia - it just keeps on going up!

It closed in the US @ $1,148 giving NVDA a mkt cap of approx USD$2.82 trillion!

That's over AUD$4.27 Trillion dollars!

GDP in Australia is estimated to be USD$1.376 trillion dollars at the end of 2024. That means one US company is worth 2 times ALL of Australia's GDP!

Since NVDA's earnings, everything but AI has been sold...

We truly live in amazing times!

Happy Thursday!

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