Market Update & Important Indicators
U.S. stocks rallied Thursday as the U.K. voted in a historic referendum to decide whether the country should leave the European Union. Financial markets have followed the vote closely, with sterling, government bonds and stocks around the world moving with opinion polls. While recent polls have suggested a tight race, the betting markets have been more confident the "remain" campaign will win. Thursday's broad market rally, portfolio managers said, seems to be a sign that investors have increasingly placed their trust in bookmakers to price in Brexit odds. Financial stocks in the S&P 500 — the worst-performing sector this year – jumped 1.6%, leading gains in the index.
European stocks rallied on expectations U.K. voters will choose to stick with membership in the European Union. The Stoxx Europe 600 popped up 1.5% to 346.34, its strongest close since May 31, according to FactSet data. It was the fifth consecutive rise for the pan-European index. The Stoxx 600 extended gains intraday after the most recent poll from Ipsos Mori for the Evening Standard newspaper showed the "remain" camp swinging to a lead of 52%, compared with 48% of respondents who backed the "leave" side.
Stocks in Japan drifted higher Thursday and the Hong Kong market notched its fifth consecutive day of gains, as U.K. voters began to cast ballots on whether their nation should remain part of the European Union. The Nikkei Stock Average finished up 1.1% while the Hang Seng Index was up 0.4%. Overall, however, it was a quiet day for the region, with major benchmarks steering close to flat: the Shanghai Composite Index slipped 0.5%. South Korea's Kospi was down 0.3%. Fund managers and traders said they expect the U.K. to remain in the EU bloc, potentially leading to a small relief rally in currencies and stock markets around the world by Friday morning Asia time. But they also said they would be watching for how close the vote is, and were prepared for potential surprises.
Australian shares advanced modestly Thursday as voting began in Britain's referendum on whether to remain in the European Union. Investors remain cautious as they await the outcome of the vote, which won't likely be known until after midday Friday in Australia. Markets in recent days have been pricing in the likelihood that Britons will opt to remain in the EU after several recent polls showed the "remain" side had a slight edge. Still, some traders said that opens financial markets to a shock if the U.K. votes to exit. After a choppy session, the S&P/ASX 200 finished 9.8 points, or 0.2%, higher at 5280.7. The slight rise was led by resources stocks, helped by slight gains in oil in Asia trading, and a 2% increase in the iron-ore price overnight.
Copper futures closed near a seven-week high on Thursday ahead of the results of a British vote on membership in the European Union. The three-month copper contract on the London Metal Exchange was up 1.70% at $4,780 a ton at the PM kerb close. The other base metals were mixed on Thursday. Aluminium closed up 0.5% at $1,633 a ton, zinc was down 0.2% at $2,036 a ton, nickel was flat at $9,225 a ton, and lead was up 0.8% at $1,725 a ton.
In this Issue:
Independence Group (IGO) | Nova Rolling Ahead| BUY
Market Cap $1,623m | Current Price $3.12 | Valuation $3.40
Argonaut recently visited Independence Group’s (IGO) Nova development site. The project remains on track for first concentrate production in December 2016. All major construction components are either on site or in the country. The exploration drill drive on the 2030RL is now in place enabling underground grade control and exploration drilling. The Tropicana Long Island Study is due for release early Q3 CY16 and has potential to significantly extend the assets mine life. Argonaut maintains a BUY recommendation with a $3.40 target price
Recent Contacts & Presentations:
Galaxy Resources (GXY), Cooper Energy Limited (COE), Evolution Mining (EVN), LWP Technologies (LWP), Walkabout Resources (WKT), Minotaur Exploration (MEP), Peet Limited (PPC), Parmelia Resources (PML), Venturex (VXR), Dacian Gold (DCN), Cudeco (CDU), Resolute Mining (RSG)
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