Morning Notes

08/06/2018 - Argonaut Morning Note

Market Update & Important Indicators:

The Dow Jones Industrial Average climbed intraday as a jump in shares of oil-and-gas companies helped offset selling across the technology sector. The blue-chip index rose 95 points, or 0.4%, to 25241 after closing at its highest level in nearly three months Wednesday. The S&P 500 fell 0.1% and the Nasdaq Composite lost 1.1%, pressured by a slide in technology shares. Stocks have attempted to break higher in recent days as investors have bet that threats of tighter trade policies won't be a significant drag on global growth. The news that the U.S. and China reached a deal that would allow Chinese telecommunications company ZTE to do business again was a bright spot for investors hoping for diffused trade tensions. The US Gold price was up 0.1% to 1,296.80 US$/oz.

European shares edged lower as the euro rose against the dollar following hawkish comments by the European Central Bank. The Stoxx Europe 600 fell 0.2%, or 0.94 point, to 385.94 after ECB policy makers predicted higher wage growth and rising inflation, while hinting at a potential winding down of stimulus this year. Germany's DAX fell 0.1% and France's CAC 40 dropped 0.2%.

Broad stock gains in Asia turned up a notch, with the region logging its best day of the week. Benchmarks rose at least 0.5% except for Taiwan, where the Taiex gained 0.45% thanks to a late-day rally. Stocks rose as investors bet the global economy will be able to shake off continuing tensions in international trade. Hong Kong's Hang Seng Index rose 0.7% while Japan's Nikkei Stock Average finished up 0.9%. Indian shares extended gains, tracking the rise in other global markets. The S&P BSE ended 0.8% higher at 35463.08. The gains in the index also reflect the relief that the uncertainty over the central bank's rate hike decision and near-term policy outlook is gone. 

Resources stocks again took the lead, driving Australia's benchmark to a third gain this week and a 2 1/2-week closing high. Though it faded modestly in the afternoon, the S&P/ASX 200 still rose 0.5% to settle at 6057.3. The energy and materials sector each advanced 1.3%, and there was coordinated buying that helped the major banks recover, even if CBA again lagged its peers and the wider market. Fortescue slipped 1.3% following news it paid a premium for a 20% stake in Atlas Iron and opposed a takeover deal for the smaller miner on current terms; Atlas slumped 13% after initial gains. 

Base metal prices had mixed performance on the London Metal Exchange. The strongest gains were seen in the 3-month copper contact that rose 1.7% to 7,331/t, along with tin that gained 1.7% to 21,423/t. In contrast, the price of aluminium price slipped 1.7% to 2,303/t while nickel lost 0.7% to 15,456/t. Zinc fell 0.2% to 3,205/t.

Recent Contacts & Presentations:

Bio–Gene Technology (BGT), Walkabout Resources (WKT), Triton Minerals (TON), Calima Energy (CE1), Peel Mining (PEX), Catalyst Metals (CYL), Vault Intelligence (VLT), Doray Minerals (DRM), Nzuri Coppoer (NZC), Bowen Coking Coal (BCB), Phosphagenics Limited (POH) Great Boulder Resources (GBR), Orthocell (OCC), Northern Minerals (NTU), ABM Resources Ltd (ABU), Vital Metals Ltd (VML), Todd River Resources Ltd (TRT), Pacific Energy Ltd (PEA), Carnarvon Petroleum Ltd (CVN), Australian Mines Ltd (AUZ), Australian Finance Group (AFG), Paladin Energy Ltd (PDN), Cooper Energy Ltd (COE), Medibio Ltd (MEB), Botanix Pharmaceuticals Ltd (BOT), Salt Lake Potash Ltd (SO4), Golden Mile Resources Ltd (G88), NTM Gold Ltd (NTM), Ausmex Mining Group Ltd (AMG), Matrix C&E Ltd (MCE), Austal Ltd (ASB), Decmil Group Ltd (DCG), Ventnor Resources Ltd, Ausdrill Ltd (ASL), Alice Queen Ltd (AQX), PNX Metals Ltd (PNX), Alliance Resources Ltd (AGS), Myanmar Metals Ltd (MYL), Primary Gold Ltd (PGO), Sino Gas & Energy Holdings Ltd (SEH)

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