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ASX higher as Wolf of Wall Street issues GameStop warning

Anastasia Santoreneos
·3-min read
Jordan Belfort, the financier convicted of fraud and the author of the book "The Wolf of Wall Street", arrives for the premiere of the film adaptation of his book in New York December 17, 2013. REUTERS/Lucas Jackson (UNITED STATES - Tags: ENTERTAINMENT BUSINESS)
ASX to rise as Wolf of Wall Street issues GameStop warning. Source: Getty

The Australian share market is more than 1 per cent higher at midday trade to 6,833.30 points.

It follows the Reserve Bank of Australia’s decision to keep the official cash rate on on hold at 0.10 per cent, and to purchase an additional $100 billion in Government bonds in its first meeting of 2021.

In the US, Wall Street’s main indexes rose, building on Monday’s momentum as investors anticipated strong results from Amazon and Google and signs of progress on a pandemic stimulus package.

The Dow Jones Industrial Average rose 1.72 per cent to 30,730.25, the S&P 500 gained 1.50 per cent to 3,830.46 and the Nasdaq Composite gained 1.60 per cent, to 13,618.48 points.

And here’s what you missed overnight

Amazon founder Jeff Bezos has revealed he will be stepping down from his role as CEO in Q3 of this year, and transitioning to executive chairman of the board.

The RBA kept the cash rate on hold on Tuesday afternoon and confirmed it would purchase $100 billion worth of Government bonds.

Governor Philip Lowe is expected to expand on his views of the economy outlook and interest rates in his first public address of the year on Wednesday.

Captain Sir Tom Moore, the World War II veteran who raised close to $60 million for healthcare services in the UK during the pandemic by walking 100 laps of his garden before his 100th birthday, has died.

Sir Tom tested positive for coronavirus on 22 January, and was fighting pneumonia.

Aussie wins big: One lucky lottery player has won Oz Lotto’s entire $30 million prize on Tuesday night.

The seven winning numbers for draw number 1407 are 26, 17, 16, 3, 44, 14, 42 and the supplementary numbers are 37 and 38. The winner is yet to be identified.

Warren Buffett won’t short anything: The world’s best investor won’t be taking part in any GameStop shorting or rorting, it seems.

In 2001, the Oracle of Omaha was quoted saying, short selling has “ruined a lot of people”, and he’s well-known for taking the long view when it comes to investing.

Here’s his take.

And he’s got a point: GameStop’s rally has come to a screeching halt this week, as the company’s shares headed for their biggest one-day loss on record, bleeding US$27 billion in market value from their high.

The Wolf of Wall Street, aka Jordan Belfort, who was jailed for market manipulation in 1999, also had a word of advice for Redditors, warning they “could lose everything”.

Belfort also warned the US trading platform that banned GameStop buying, Robinhood, could go out of business over the controversy.

“I really believe the lawsuits are going to be very problematic,” he said.

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