Market Update & Important Indicators:
Losses in financial shares dragged down U.S. stocks Thursday, a day ahead of earnings reports from some of the nation's largest banks. Government bonds strengthened and the dollar fell. Analysts said a lack of clarity around President-elect Donald Trump's policies disappointed some investors who had hoped for more details on his plans to cut taxes, increase fiscal spending and reduce regulation at Wednesday's news conference. Banks have led a post-election surge in major U.S. indexes as investors bet the new administration will pursue policies that will increase growth and boost profits at lenders. The options market suggests a looming pause for a rally that has lifted the KBW Nasdaq Bank Index of large U.S. commercial lenders roughly 23% since the U.S. election. Since December, investors have increased the number of bearish options on financial shares at a faster pace than for bullish contracts, reversing a trend from the immediate post-election weeks.
Drug companies led declines in Europe, with a 1.9% drop in the Stoxx Europe 600 health-care sector helping pull the index down 2.39 points, or 0.7%, to 362.51, snapping a two-day winning streak. "Pharma shares everywhere — to the extent they have exposure to the U.S. — will also struggle if their U.S. counterparts struggle on the back of policy changes," said Abi Oladimeji, chief investment officer at Thomas Miller Investment.
Asian equity markets reversed early gains to end broadly lower on Thursday, as investors sought to take profits amid the prevailing global political uncertainties. The Shanghai Composite Index ended down 0.6%, while Hong Kong's Hang Seng Index declined 0.5%. This was the first time Mr. Trump named Japan as benefiting from a trade imbalance with the U.S., raising some concern among investors in the Asian country, and contributing to a 1.2% slump in the Nikkei Stock Average on Thursday. Meanwhile, financial stocks were hurt as yields of long-term Japanese government bonds moved lower, with investors turning to the safe-haven asset amid the stocks’ decline. On Wednesday, Mr. Trump offered little clarity on his economic stimulus plans, disappointing the market and sending the U.S. dollar down against major currencies. The ICE U.S. Dollar Index, which measures the U.S. currency against six others, was last down 0.6% in late Asian trade. As against other Asian currencies, the greenback was off 0.5% versus the Chinese yuan, 0.3% lower against the Thai baht and 0.7% lower against the Korean won.
The rally by Australian shares since the U.S. election stumbled again Thursday as uncertainty weighed on sentiment following a much-anticipated news conference by President-elect Donald Trump. After initially pushing higher, buoyed by energy stocks in the wake of a rise in crude-oil prices, the local market pared gains and finished marginally lower. Health-care stocks in particular weighed after Mr. Trump criticized the drug industry. In its second decline of 2017, the S&P/ASX 200 fell 4.6 points, or almost 0.1%, to end at 5766.9. The healthcare sector lost 1.7%, adding to losses by property trusts and consumer staples firms. Energy and materials stocks managed modest gains.
The London Metal Exchange's three-month copper contract closed up 2.24% at $5,842/t. Other base metals mostly gained across the board on Thursday. Aluminium prices rose 1.6% to $1,791/t, zinc rose 1.1% to $2,710/t, nickel rose 1.0% to $10,224/t and lead rose 3.5% to $2,194/t. Tin bucked the trend falling 0.4% at 21,065/t.
In this Issue:
Orthocell (OCC) | Collaboration with J&J | SPEC BUY
Market Cap. $44.7m | Current Price $0.45
OCC has signed a research collaboration agreement with DePuy Synthes Products, Inc., part of the Johnson & Johnson Family of Companies. A collaborative study for OCC’s Ortho-ATI® stem cell approach for the regeneration of degenerate tendons and ligaments will commence in the first quarter of 2017. The trial will be led by Orthopaedic surgeon, Professor Allan Wang from the University of Western Australia and current president of the ‘Shoulder and Elbow Society of Australia’.
Recent Contacts & Presentations:
Emmerson Resources Ltd (ERM), Syntonic Ltd (SYT), MZI Resources Ltd (MZI), Resolute Mining Ltd (RSG), Capricorn Metals Ltd (CMM), Eve Investments Ltd (EVE), Australian Mines Ltd (AUZ), Heron Resources Ltd (HRR), St George Mining Ltd (SGQ), Threat Protect Australia Ltd (TPS), Paringa Resources Ltd (PNL), The Gruden Group Ltd (GGL), Primary Gold Ltd (PGO), Vault Intelligence Ltd (VLT), Botanix Pharmaceuticals Ltd (BOT) Orthocell Ltd (OCC), Strandline Resources Ltd (STA) Dragontail Systems Ltd (DTS), ABM Resources Ltd (ABU), Acacia Coal Ltd (AJC), Troy Resources Ltd (TRY), Hazer Group Ltd (HZR), Berkeley Energia Ltd (BKY), Sino Gas & Energy Holdings Ltd (SEH)
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