ANDIKA BULLETin 9 APR 2024

ASX200 Futs are pointing up 36 pts for today's session.

To the overnight mkts:

Ahead of the event risk of CPI, PPI, and FOMC Minutes this week, US stocks ambled along while the STIRs market eviscerated more rate-cut hope, sending Treasury yields higher and gold and crypto also soared amid 'policy error' fears and geopolitical tensions.

US Rate-cut expectations for June fell back below 50% with market is now pricing in only 62bps of cuts in 2024...

As 'No Landing'/Reflation starts to dominate the 'Soft Landing' narrative...

US Stocks, broadly speaking, went nowhere overnight.

Bitcoin on the other hand soared back near record highs today nearing USD$73,000...

And that ancient relic - Gold - topped USD$2,350 overnight - a new record high - amid a frenzy of Chinese interest...

So in AUD terms, 1 ounce of Gold is currently worth $3,540

You can see why Gold (like Bitcoin) is a store of wealth. While the purchasing power of your AUD is going backwards, at least the gold price in AUD is going upwards.

Here's the Bitcoin price in AUD over the last two years.

You can see why both are doing well in times of financial anxiousness.

Finally, when will interest rates matter?

(interest rate inverse RHS of the chart)

Maybe after this week's Fed Minutes spoil the party?

Happy Tuesday!

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