Market Update & Important Indicators
U.S. stocks edged lower after a handful of disappointing earnings reports. The moves added to Monday's declines, pulling major U.S. indexes further away from recent record highs. Most reports so far have been solid, if unspectacular. With 159 companies in the S&P 500 reporting, earnings in the index are on track to contract 4.5% in the second quarter from the prior year, marking the fifth consecutive quarter of earnings declines, according to FactSet.
European stocks closed with small gains as analysts pinned the muted action on traders waiting for news from central banks due later in the week. The Stoxx Europe 600 inched up 0.1% to finish at 341.26, after ending 0.2% higher on Monday.
Stocks in Japan fell sharply on Tuesday on concerns the Bank of Japan may not deliver on the market's sky-high expectations on easing, underperforming an otherwise positive trading session for the region. The Nikkei Stock Average dropped 1.4% and the yen strengthened sharply, surging 1.6% against the U.S. dollar in Asian trade in its biggest one-day appreciation since the Brexit vote. A report published Tuesday by the Nikkei business daily said the Japanese government will inject Y6 trillion ($56.70 billion) in direct spending, double the previous estimate. Elsewhere, South Korea's Kospi ended up 0.8%, Hong Kong's Hang Seng Index rose 0.8% and the Shanghai Composite Index added 1.1%.
Australia's share market ended a fraction higher Tuesday as investors awaited key inflation data that could determine whether the Reserve Bank of Australia cuts official interest rates further. The S&P/ASX 200 closed up just 3.9 points, or 0.1%, at 5537.5, after spending most of the day in negative territory. Taking its lead from weaker U.S. stock indices, the local bourse started lower before edging up through much of the session. Financial stocks and property trusts rose as attention turned to inflation numbers due Wednesday. The data is expected to confirm that a return to the Reserve Bank's desired inflation target band of 2%-3% is still years away, giving the central bank a compelling case to cut rates in August.
Copper futures closed higher in London. The London Metal Exchange's three-month copper contract was 0.63% higher at $4,930/t at the PM kerb close. In the other base metals, aluminium down 0.7% at $1,582/t, zinc was down 0.9% at $2,225/t, nickel was down 1.2% at $10,310/t, lead was down 0.5% at $1,822/t, and tin was down 0.6% at $17,650/t.
Recent Contacts & Presentations
Paradigm Biopharma (PAR), 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), Apollo Consolidated (AOP), Botanix Pharmaceuticals (BOT), Sino Gas & Energy (SEH), 4DS Memory Ltd (4DS)
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