Morning Notes

05/03/2015 Argonaut Morning Note

Market Update & Important Indicators

US stocks have fallen for a second day after a run that saw new Dow and S&P records and a 15-year high for the Nasdaq. Dull data on private business hiring and service sector growth, and a so-so Beige Book economic survey from the Federal Reserve kept traders cautious, with eyes now on Friday's official jobs market report for February, and the European Central Bank meeting Thursday. At the close on Wednesday, the Dow Jones Industrial Average was down 106.47 points (0.58 per cent) at 18,096.90. The broad-based S&P 500 fell 9.25 (0.44 per cent) to 2,098.53, while the tech-rich Nasdaq Composite dropped 12.76 (0.26 per cent) to 4,967.14.

Europe's stock markets finished slightly higher following earlier sluggishness and a downbeat session in Asia, as investors looked ahead to the European Central Bank's interest rate meeting. London's benchmark FTSE 100 index of top companies inched up 0.44 per cent to 6,919.24 points. Frankfurt's DAX 30 rose 0.98 per cent to close at 11,390.83 points, while the CAC 40 index in Paris climbed 0.99 per cent to 4,917.35 points. European indices had fallen on Tuesday after recent strong gains, with traders sitting tight as the Eurozone awaits new central bank stimulus. On Thursday, the ECB President Mario Draghi will unveil details of the bond purchase program the bank is embarking on later this month. The euro hit a five-week low of $US1.1073 compared with $US1.1178 late in New York.

Asia markets mostly fell following a retreat on Wall Street fuelled by profit-taking. With few trading cues, investors are keeping a watch on the start of China's annual parliament meeting on Thursday as well as European Central Bank details on its new bond-purchase scheme. Tokyo lost 0.59 per cent, or 111.56 points, to 18,703.60; Seoul lost 0.15 per cent, 3.09 points, to 1,998.29. Hong Kong fell 0.96 per cent, or 237.40 points, to 24,465.38, but Shanghai rose 0.51 per cent, or 16.48 points, to 3,279.53.

In Australia, the market on Wednesday closed lower as three major stocks traded ex-dividend and economic growth figures disappointed investors. The benchmark S&P/ASX200 index was down 32.3 points, or 0.54 per cent, at 5,901.6. The broader All Ordinaries index fell 31.4 points, or 0.53 per cent, at 5,871.5, according to preliminary figures.

The Australian market looks set to open flat after falls on Wall Street following dull US data on hiring and vehicle sales underscored the feeling of caution. At 0902 AEDT on Thursday, the share price index futures contract was down one point at 5,882. In local economic news on Thursday, the Australian Bureau of Statistics releases retail trade figures and international trade in goods and services data, both for January.

Tin was the only looser on the LME with prices down 0.3% with all other base metals higher with the largest increase in Nickel up 1.9%. Brent crude fell 0.9% to $60.45/bbl and gold lost 0.2% to $1,200/oz.

In This Issue

The Battle of Tanami
In February 2015, Tanami Gold (TAM) announced two separate and competing joint venture agreements with Metals X (MLX) and Northern Star (NST) for the Central Tanami Project (CTP). Whilst the outcome of the project JV remains uncertain, both MLX and NST have the balance sheet and technical capability to take the project forward. The Tanami region remains one of the final frontiers in Australia where the discovery of shallow, multi-million ounce gold deposits are still possible. Companies active in the region cover the entire spectrum from international majors to junior explorers. 

Recent Contacts & Presentations

Dacian (DCN), West African Resources (WAF), Northern Star (NST), Saracen (SAR), Doray (DRM), Troy (TRY), Resolute (RSG), Gold Road (GOR), Regis (RRL), Independence Group (IGO), Energia Minerals (EMX), Rewardle (RXH), Doray (DRM), Alexium (AJX), Orbital (OEC), IMF Bentham (IMF), Metals X (MLX), Pura Vida (PVD), Image Resources (IMA), Tangiers (TPT), ABM Resources (ABU), Centaurus (CTM), Rox (RXL), Pacific Energy (PEA), MMA Offshore (MRM), Tox Free (TOX), Commodities Group (COZ), Pioneer Credit (PNC), Rift Valley (RVY), Orion Gold (ORN), Austal (ASB), Ausdrill (ASL), Gage Roads (GRB)

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