Overseas Market Report – U.S. Stocks End Higher after Oil Rebounds
U.S. stocks extended their gains into the afternoon to close higher Thursday, after oil prices rebounded.
U.S.-traded oil futures rebounded from steep losses that earlier in the week sent prices dipping below US$30 a barrel for the first time in 13 years.
Energy stocks rose sharply, with Exxon Mobil notching the biggest gain among Dow components. Chevron shares also rallied.
At the close, the Dow was up 1.4%, while the S&P 500 was up 1.7% and the NASDAQ was 2% higher.
For Australian ADRs listed on the NYSE, BHP Billiton gained $1.30 cents (6.48%) to $21.70, ResMed added $1.05 (1.98%) to $54.17, Telstra Corporation gained 13 cents (0.70%) to $18.80, Spark New Zealand added 7 cents (0.67%) to $10.57 and Westpac gained 55 cents (2.57%) to $21.99.
At 7:45 AM (AEDT), the 10-year Treasury note yield was 2.09% and the 5-year yield was 1.15%.
European shares managed to cull earlier losses but still closed lower amid commodity-price fears and bleak global-growth prospects.
The FTSE 100 fell 0.7%, the French CAC 40 dropped 1.8% and Germany's DAX was down 1.7%.
Asian markets were mostly lower.
The Shanghai Composite righted itself after slipping into bear-market territory. It closed up 2%.
The Nikkei 225 plunged 2.7% and the Hang Seng fell 0.6%. India's Sensex dropped 0.3%.
Australian Market Report – Local Market Expected To Open Higher
Ahead of the local open, SPI futures were 44 points higher at 4,922.
Thursday 14 January – The Australian market opened sharply lower this morning on the back of further weakness in oil prices and losses on Wall street overnight. Local shares traded well below the red line throughout the day, as a broad-based sell-off amongst banks and resource stocks eased all the gains made from previous session. All sectors ended lower, with health care being the worst performer. The Australian dollar appreciated against most major currencies.
The All Ordinaries fell 77.50 points (-1.54%) to 4,964.10 while the S&P/ASX 200 lost 78.00 points (-1.56%) to 4,909.40.
In This Issue
Regis Resources (RRL)
Regis Resources announced that further excellent gold results were received from a final 49 hole RC programme completed at Baneygo. An Indicated and Inferred Resource of 7.1MT at 1.03g/t gold for 237,000oz has been estimated at Baneygo. A maiden Ore Reserve estimation is expected to be completed for Baneygo later in the March 2016 quarter. A first pass infill and extensional drilling programme at the recently acquired Gloster gold deposit has confirmed excellent gold results from a 177 hole RC programme. RC drilling was completed during the quarter at the Idaho prospect to follow up earlier reconnaissance RC drilling. RC drilling was completed at the Coopers gold deposit, 11km south of Moolart Well and 600m north of Dogbolter during the quarter to follow up earlier encouraging AC and RC drilling results. RRL added 7 cents to $2.28.
Wesfarmers (WES)
Wesfarmers announced that it has made a conditional offer to acquire Homebase from Home Retail Group PLC for cash consideration of GBP340m. The Company and Home Retail Group began discussions in September 2015 and due diligence work commenced under a confidentiality agreement in October 2015. An exclusivity agreement was signed in early December 2015 and confirmatory due diligence has been completed. Transaction documentation is advanced and in the process of being finalised. There is no certainty the offer will lead to an agreed transaction. Homebase is the second largest home improvement and garden retailer in the United Kingdom and Ireland, with 265 stores and reported revenue of GBP1,461.2m for the 12 months ended 29 August 2015. WES dropped 55 cents to $39.40.
Recent Contacts & Presentations
Empire Oil & Gas (EGO), Millennium Minerals (MOY), Geopacific Resources (GPR), Saracen (SAR), Agrimin (AMN), Salt Lake Potash (SO4), Reward Minerals (RWD), Transerv Energy (TSV), Carnarvon Petroleum (CVN), Success Resources (SGU), High Peak Royalties (HPR), Heron Resources (HRR), OBJ (OBJ), Goldfields Money (GMY), Hazer (HZR), MZI Resources (MZI), Apollo Minerals (AON), Otto Energy (OEL), Sino Gas & Energy Holdings (SEH)
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