Market Update & Important Indicators
U.S. stocks were mixed Tuesday, with the Dow Jones Industrial Average poised to extend a seven-session rally that catapulted the index to new records. The start of the earnings season in the U.S. and hopes about central bank stimulus after the U.K.'s surprise vote to leave the Europe an Union last month have helped push stocks higher in recent weeks. On Tuesday, traders said second-quarter corporate results dominated trading.
European stock markets retreated from a three-week high, as disappointing corporate updates and lackluster economic sentiment data from Germany soured the investing mood. The Stoxx Europe 600 index lost 0.4% to 337.32, after closing at the highest level since June 23 – the day of the U.K.'s Brexit referendum – on Monday.
Stocks in Japan rose for the sixth straight session Tuesday, on growing expectations that the Bank of Japan will soon roll out stimulus for the economy. Many analysts expect the Bank of Japan to unveil more stimulus measures at its next monetary policy meeting, to be held July 28-29. The Nikkei Stock Average closed up 1.4%, after being shut for a holiday Monday. The benchmark was adding to its 9.2% gain last week. Elsewhere in Asia, markets reversed into profit-taking mode following the recent rally, with Chinese stocks in Hong Kong falling 1.2%. The Hang Seng Index fell 0.6%, while South Korea's Kospi and the Shanghai Composite Index each lost 0.2%.
Australian shares ended lower, breaking an eight-day winning streak, as the materials sector weighed and big banks took a breather. The S&P/ASX 200 ended down 7.2 points, or 0.1%, at 5451.3 on Tuesday. The financial sector, a major catalyst of the recent rally, ended slightly lower Tuesday. The Reserve Bank of Australia released the minutes of its recent board meeting Tuesday, leaving the door open to another rate cut, saying it will review this month's inflation, housing and employment data to assess whether a change in policy is needed. The RBA last cut interest rates in May to 1.75% following news of benign first-quarter inflation. Second-quarter inflation data next week are widely expected to be a trigger to a further cut in rates in August.
Copper futures closed higher in London on expectations of fresh economic stimulus in Europe and China. The London Metal Exchange's three-month copper contract was 0.91% higher at $4,984/t at the PM kerb close. Other base metals were mixed. Aluminium closed 0.8% lower at $1,631/t, zinc was up 1.1% at $2,237/t, nickel was up 0.2% at $10,529/t, lead was up 0.4% at $1,851/t, and tin was down 1.3% at $17,678/t.
In this Issue
Dacian Gold (DCN) | Jupiter Resource update | BUY
Market Cap $375m | Current Price $3.42 | Valuation $3.60
Dacian Gold (DCN) released an updated Resource for the Jupiter Prospect, part of the Mt Morgans Gold Project. The total Resource increased by 207koz or 19% to 1.4Moz at 1.3g/t. Importantly, the Measured and Indicated Resource categories increased 69% to 1.1Moz. This represents the first of three Resource reports expected in July, with updates on the Westralia and Morgans underground deposits to follow shortly. Regional exploration is ongoing with drilling of the +8Moz Wallaby lookalike Callisto prospect to commence in the coming weeks. Argonaut maintains a BUY recommendation with a revised target price of $3.60 (previously $3.25).
Recent Contacts & Presentations
OBJ Limited (OBJ), Kibaran (KNL), Department 13 (D13), Peak Resources (PEK), Fortescue Metals (FMG), Paradigm Biopharma (PAR), Botanix (BOT), Peel Mining (PEX), Ausgold Limited (AUC), Gascoyne Resources (GCY), Metro Mining (MMI), Pacific Energy (PEA), Novatti Group Ltd (NOV), Hammer Metals Ltd (HMX), Helix Resources Ltd (HLX), Saracen Mineral Holdings Ltd (SAR), Merdeka Copper Gold (MDKA: IJ), Monument Mining (MMY.V: TSX)
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