Market Update & Important Indicators:
U.S. stocks rose Monday as companies unleashed a fresh round of deals and earnings. Technology shares rose broadly, helping lift the Nasdaq and leading gains in the S&P 500. Monday's moves came after the S&P 500 snapped a two-week losing streak on Friday following deal talks and better-than-expected earnings. By the end of this week, 292 companies in the S&P 500 are expected to have reported earnings, according to FactSet.
Spanish assets led gains in Europe after the country ended its 10-month leadership impasse on Sunday as Mariano Rajoy was assured of re-election as prime minister. Spain's IBEX 35 index gained 1.3%. European bank shares continued to perform well after a strong week, with the Euro Stoxx Banks index rising 2.7% Monday. Germany's DAX index added 0.5% and closed at its highest level of the year, while the Stoxx Europe 600 finished generally flat.
Asia's equity markets reversed their early weakness to notch broad gains on Monday, as traders in Japan came to appreciate that the latest import-export data, though weak, did beat expectations. The Nikkei Stock Average closed up 0.3%, after an early decline of 0.1%. The Shanghai Composite Index added 1.2% to its highest point in more than two months, while in Hong Kong, where the market had been closed Friday due to Typhoon Haima, the Hang Seng Index rose 1%. Korea's Kospi closed up 0.7%. Moreover, Japan's manufacturing purchasing managers index rose to 51.7 in October from September's 50.4. The indicator tracks the order expectations of factory managers. The Chinese market's gains had been capped earlier in the session, after China's central bank fixed the yuan 0.2% weaker against the U.S. dollar. The yuan has been trading at six-year lows against the dollar in recent sessions, and some investors have been concerned about the possibility of capital flight. Still, Capital Economics said recent movement has been driven mainly by dollar strength, which it expects to continue ahead of a likely rate rise by the U.S. Federal Reserve in December. Others in the market view a rally in China shares as a sign that the market can withstand some capital exodus.
Broad selling pulled Australian shares lower Monday. Falling for a second straight session, the S&P/ASX 200 index finished 21.8 points, or 0.4%, lower at 5408.5. Modest gains by some of the big bank and mining stocks helped counter declines in most other sectors. The energy subindex in particular was weaker, losing 1.5, after oil prices dropped in Asian trade on signs the production cuts proposed by the Organization of the Petroleum Exporting Countries won't have the support of Iraq, which signalled it wants to be excluded from the pact.
On the London Metal Exchange, copper for delivery in three months closed up 0.1% at $4,638/t. Other base metals were mainly higher on Monday. Aluminium prices rose 0.3% to $1,624/t, zinc rose 2.3% to $2,300/t, tin rose 0.5% to $20,190/t, nickel rose 1.5% to $10,068/t and lead rose 1.2% to 2,009/t.
Recent Contacts & Presentations:
Salt Lake Potash Ltd (SO4), Kalina Power Ltd (KPO), Austal Limited (ASB), Agrimin Ltd (AMN), Stavely Minerals Ltd (SVY), MGC Pharmaceuticals Ltd (MXC), Vital Metals Ltd (VML), Tox Free Solutions Ltd (TOX), Swick Mining Services Ltd (SWK), Davenport Resources Ltd (DAV), Orthocell Ltd (OCC), BC Iron Limited (BCI), ALT Resources Ltd (ARS), Gascoyne Resources Ltd (GCY), Dacian Gold (DCN), Orocobre Ltd (ORE), Alchemy Resources Ltd (ALY), Acacia Coal Ltd (AJC), Minotaur Exploration Ltd (MEP), Northern Minerals Ltd (NTU), Walkabout Resources Ltd (WKT), Antipa Minerals Ltd (AZY), Noxopharm Limited (NOX)
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