Premium: ING’s Full reports, Goldman report on LATAM miners
Yesterday’s Activity:
US equities rallied on Thursday ahead of the jobs report on Friday.
Market Commentary:
NVDA is Insane
NVDA closed yesterday ~42% above its 50DMA the highest close above its 50-day since June 2003 || NVDA is now a ~$2.3 trn market cap Apple’s market cap (~$2.6bn) ..||NVDA’s $2.3 trillion market cap is now larger than the ~30 other names in the SOX .. COMBINED (think: AMD + AVGO + QCOM + INTC + TSM, et al)
NVIDIA’s competitors are rapidly expanding investment in the same technologies. Companies like Huawei are quietly investing tens of billions of dollars into chip manufacturers that over time will revert semiconductors back to their qualities of the previous cycle – a commodity.
China buys more gold in February
China’s central bank added gold to its reserves for a sixteenth straight month in February as reserve diversification and geopolitical concerns push central banks to increase their allocation towards safe assets. We believe this is likely to continue this year.
ING Bank Report (at bottom)
Last month, China’s central bank added gold to its reserves for a sixteenth straight month. The People’s Bank of China now owns 72.58 million troy ounces, equivalent to about 2,257 tonnes, after adding about 390,000 troy ounces last month.
Central banks bought 1,037 tonnes of gold last year, just shy of the all-time high of 2022, as shown by data from the World Gold Council, as reserve diversification and geopolitical concerns pushed central banks to increase their allocation towards safe assets.
The timing of the announcements is as important as the announcment itself:
**Full ING reports attached at bottom
Price Action
Gold- steady as she goes
Silver- creeping acceptance
Miners- close
Oil- if gold holds, Oil will rocket
BTC/ETH- Gold junior is ahead of the game
Stocks-
Bonds- big problems ahead
Dollar- mixed
Market News: Delete America
"For American tech companies in China, the writing is on the wall. It’s also on paper, in Document 79. The 2022 Chinese government directive expands a drive that is muscling U.S. technology out of the country—an effort some refer to as “Delete A,” for Delete America. Document 79 was so sensitive that high-ranking officials and executives were only shown the order and weren’t allowed to make copies... It requires state-owned companies in finance, energy and other sectors to replace foreign software in their IT systems by 2027."Source: WSJ
Biden seeks to make healthcare tax credit permanent- inflation
"Federal Reserve Chair Jerome Powell on Thursday indicated that interest rate cuts may not be too far off if inflation signals cooperate.-Source: CNBC
"The number of problem banks in the US has jumped by 18 per cent, regulators warned, as New York Community Bank was stabilised by a $1bn capital raise led by former US Treasury secretary Steven Mnuchin. Source: FT
"Temu, the international arm of the Chinese e-commerce giant Pinduoduo, is flooding Google with ads for absurdly inexpensive goods. Source: NYT- Japan semi strategy
"A powerful US congressional committee has passed a bill that would remove TikTok from app stores unless its Chinese owner divests the video-sharing platform, brushing off a lobbying campaign that had enlisted thousands of its users. Source: FT
US President Biden announced that the US military will construct a port in Gaza to allow more humanitarian aid to arrive and confirmed there will be no troops on the ground - isn’t Israel our ally?
US President Biden stated during the State of the Union Address that they are facing an unprecedented moment and he assures that Russian President Putin will not stop at Ukraine, while he added they can stop Putin by helping Ukraine with weapons and his message to Putin is that they will not walk away and will not bow down.- rhetoric ramp up
Some headlines via NewSquawk or DataTrek
Data on Deck:
MONDAY, MARCH 4 12:00 pm Philadelphia Fed President Tom Harker
TUESDAY, MARCH 5 10:00 am ISM services Feb.
WEDNESDAY, MARCH 6 10:00 am Fed Chair testifies to Congress.
THURSDAY, MARCH 7 Fed Chair Jerome Powell testifies to Congress
Initial jobless claims March 2 218,000 215,000 8:30 am U.S. productivity (revision) Q4 3.1% 3.2% 8:30 am U.S. trade balance, 3pm Credit
