Morning Notes

12/09/2017 Argonaut Morning Note

Market Update & Important Indicators
The Dow Jones Industrial Average climbed back above 22000 for the first time in nearly a month, as investors' fears eased about North Korea and Hurricane Irma. Stocks rose broadly and haven assets retreated, a reversal from last week when major U.S. stock indexes, the dollar and Treasury yields fell as investors worried about worst-case scenarios from summer storms and threats from North Korea. The Dow industrials rose 266 points, or 1.2%, to 22063 in recent trading. The S&P 500 and the Nasdaq Composite jumped 1.1%. The last time the blue-chip index closed above 22000 was Aug. 16 and it hasn't posted a 1% gain since April. Some analysts had expected North Korea to conduct a weapons test on Saturday, coinciding with the country's founding day, as it did last year to mark the celebration. The absence of news from Pyongyang supported stocks and the dollar. Meanwhile, concerns about Hurricane Irma's impact on the U.S. economy also decreased. A reduction in the storm's strength and a shift in its forecast course - there was no direct hit on Miami - meant insured damage estimates were likely to be less than originally anticipated. The U.S. gold price pulled back further overnight, losing 1.4% to close at 1,327 US$/oz.

Stocks across Europe rose Monday, led by gains for insurance stocks as Hurricane Irma took a narrower path over Florida than expected, promising less damage. The Stoxx Europe 600 index jumped 0.9% to 378.71, led by financial and industrials shares, but all sectors advanced. The index on Friday closed up 0.2% and logged a weekly loss of 0.2%. Investors were also seen as taking heart from an easing of worries over North Korea's potential nuclear arsenal, after Pyongyang failed to conduct a missile test to mark its Foundation Day on Saturday.

Asian stocks edged higher Monday, as fears eased among investors about a standoff with North Korea and the impact of Hurricane Irma on the U.S. economy. Tensions, though, could escalate again if the U.N. approves fresh sanctions on North Korea later Monday. U.S. officials are pushing the United Nations Security Council to ban Pyongyang's textile exports and embargo oil sales to the country. The Nikkei 225 rose 1.4%, after setting fresh four-month lows on Friday and logging it worst week in seven months. Elsewhere, South Korea's Kospi was up 0.7%.

After initial weakness, Australian stocks quickly joined the gains seen across Asia Pacific today as risk sentiment improved following no step-up in concerns regarding North Korea over the weekend. The S&P/ASX 200 rose 0.7% to 5713.1, its best finish in 10 days. The major banks led, recovering some of the ground lost in recent weeks, while mining companies were out of favor after sharp drops in industrial metals after Australian stock trading wrapped on Friday.

The London Metal Exchange’s 3-month copper contract traded higher overnight, bouncing 0.82% to finish at $6,748/t. The other base metals also finished higher following losses on Friday night. Nickel prices added 1.5% to 11,693/t, while aluminium prices gained by 1.0% to close at 2,091/t. Lead prices rose 0.5% to close at 2,245/t, whilst Zinc prices jumped by 1.7% to 3,081/t. Tin prices firmed by 1.0% to finish at 20,880/t.

Recent Contacts & Presentations
Artemis Resources Ltd (ARV), Apollo Consolidated Ltd (AOP), Vault Intelligence Ltd (VLT), Fleetwood Corp Ltd (FWD), DTI Group Ltd (DTI), Calima Energy Ltd (CE1), Austal Ltd (ASB), Indoor Skydive Australia (IDZ), OZ Minerals Ltd (OZL), NorWest Energy Ltd (NEW), Berkut Minerals Ltd (BMT), Draig Resources Ltd (DRG), Minotaur Exploration Ltd (MEP), Ausdrill Ltd (ASL), Neometals Ltd (NMT), PNX Metals Ltd (PNX), Northern Minerals Ltd (NTU), New Century Zinc Ltd (NCZ), Metal Bank Ltd (MBK), Rift Valley Resources Ltd (RVY), Panoramic Resources Ltd (PAN), Doray Minerals Ltd (DRM), Wellard Limited (WLD), Bryah Resources Ltd (BYH), Auris Minerals Ltd (AUR), Gage Roads Brewing Co Ltd (GRB), Stavely Minerals Ltd (SVY), Orbital Corporation Ltd (OEC)

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