Market Update & Important Indicators:
U.S. stocks fell Tuesday, with consumer-discretionary shares leading losses after a string of disappointing earnings reports. U.S. stocks have been largely driven by earnings this week. Companies in the S&P 500 are now expected to report slight earnings growth for the third quarter compared with the year-earlier period, according to FactSet. As of Sept. 30, analysts polled by FactSet projected a 2.1% decline. But consumer-discretionary companies faltered Tuesday, leading declines in the S&P 500 with a 1.2% drop.
European stocks lost ground as big decliners such as Italian banks and Swiss chip maker AMS AG offset an encouraging reading on German business sentiment. The Stoxx Europe 600 fell 0.4% to close at 343.07, as earlier gains didn't stick. The pan-European gauge had traded as high as 345.65 on Tuesday, after Germany's Ifo institute said the business mood in Europe's largest economy rose to a 2.5-year peak.
Asian equity markets were mixed on Tuesday as South Korean economic data disappointed, but a rally in Chinese commodity prices pointed to strength in the world's second largest economy. South Korea's gross domestic product grew 2.7% year-over-year in the third quarter, down from a 3.3% gain in the prior three-month period, according to preliminary data from the Bank of Korea. Korea's Kospi closed down 0.5% following the lacklustre data. Analysts said that without brisk housing construction-made possible by cheaper bank loans and easier mortgage rules supported by financial authorities-Korean growth would have slowed further. Elsewhere in Asia, Hong Kong's Hang Seng Index closed down 0.2%, while Japan's Nikkei was up 0.8% on yen weakening. The Shanghai Composite Index edged out a 0.1% gain. The yuan was fixed weaker again Tuesday–Beijing on Tuesday set the onshore yuan against the greenback at 6.7744, down 0.08% from Monday, to a fresh six-year low. China's iron-ore and steel futures surged Tuesday amid investors' renewed optimism about the economy. Prices of iron ore futures on the Dalian Commodity Exchange soared by the daily maximum of 6% during early trading hours, while steel rebar futures extended a rally from last week. Traders saw a drop in inventories of the commodities as a sign of a demand pick up from infrastructure.
Mining and bank stocks helped Australia's equities market make its strongest advance in three weeks on Tuesday. Snapping two consecutive sessions of losses, the S&P/ASX 200 gained 34.3 points, or 0.6%, to finish at 5442.8–its highest level since Oct. 12. Broad gains were held back only by the energy sector and the basket of consumer-staples stocks. The local currency was little changed against the U.S. dollar, holding steady ahead of third-quarter inflation data due Wednesday. Each of the major banks was higher ahead of earnings reports in the coming days, beginning with National Australia Bank on Thursday. Westpac Banking rose 1.1%, Crude-oil futures eased in Asian trade on the prospect members of the Organization of the Petroleum Exporting Countries could walk away empty-handed from a coming meeting after Iraq signalled it might not take part in a proposed deal to cut production.
On the London Metal Exchange, copper for delivery in three months was up 2.09% at $4,735/t. In the other base metals, aluminium rose 2.3% to $1,661/t, tin rose 1.7% to $20,535/t, zinc rose 2.4% to $2,356/t, nickel rose 1.2% to $10,189/t and lead rose 1.5% to $2,039/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), Botanix Pharmaceuticals Ltd (BOT)
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