Morning Notes

06/10/2017 Argonaut Morning Note

Market Update & Important Indicators:

The S&P 500 was on course for its longest streak of record closes in 20 years, as shares of financial firms pushed major indexes higher. The broad index added 0.6% after hitting its fifth-straight high a day earlier. The Dow Jones Industrial Average gained 114 points, or 0.5%, to 22,775, while the Nasdaq Composite added 0.7%. Strong corporate earnings have buoyed stocks for months, and a recent run of economic data reflecting stability and growth in the U.S. have added to stocks' momentum, analysts said. The three major indexes each have hit more than 40 records this year, even as some investors remain wary of persistently low volatility and lofty valuations. A measure of expected stock swings, the CBOE Volatility Index, was recently down 2.9%at 9.35, near its all-time closing low of 9.31 set in December 1993. The U.S. gold price lost ground overnight, shedding 0.5% to finish at 1,267.80 US$/oz.

European stocks ended a volatile session mainly higher after Madrid suspended a parliamentary session in Catalonia in an attempt to block the region from declaring independence. The Stoxx Europe 600 index ended 0.2% higher at 391.03, rising for a 10th out of the past 11 session. Spain's IBEX 35 index rallied 2.5% to 10,214.70, after posting its biggest loss in 15 months on Wednesday. Spanish assets have been battered in recent days after scenes of violence from Sunday's independence referendum in Catalonia went global and Madrid declared the vote illegal. Germany's DAX 30 index ended marginally lower at 12,968.05, after scoring a record on Wednesday. France's CAC 40 index rose 0.3% to 5,379.21, while the U.K.'s FTSE 100 added 0.5% to 7,507.99.

Asian share markets lacked direction near the close of trade, with stocks in Singapore leading gains amid a broad recovery across sectors, as the Straits Times Index rose 0.8%. However, other major Southeast Asian indexes were firmly in the red, as investors took profit from the recent strength. Indonesia's JSX was last down 0.8%, while the Philippines PSEi declined 0.6%. Elsewhere, Japan's Nikkei ended flat, with market caution ahead of parliamentary elections later this month. Markets in Hong Kong, South Korea, and China were shut for a holiday. Malaysian stocks, meanwhile, closed lower, ending two days of rebound weighed down by selected blue chips. The FBM KLCI Index ended the day 0.2% lower at 1,759.09 points.

Australian shares ended a choppy session little changed, as further weakness in major banks countered gains by the miners and a jump in Qantas. Late selling left the S&P/ASX 200 down 0.3 point at 5651.8, a third-straight day in the red and the lowest close in eight months. Traders are watching for a break by the index out of the narrow range held since about mid-May. The four big banks were down between 0.1% and 0.5%.

The London Metal Exchange’s 3-month copper contract traded higher overnight, gaining 2.74% to finish at $6,700/t. The copper spot price rose almost 3% overnight to 6,658/t after stop-loss orders triggered highest rally since July. The other base metals finished mixed. Aluminium prices rose 0.2% to 2,148/t, whilst lead prices finished 1.2% higher at 2,583/t. Tin prices rose 0.9% at 21,125/t. Falling for the day, nickel prices shed 0.7% to 10,448/t, whilst zinc prices fell 0.3% at 3,354/t.

Recent Contacts & Presentations:

Emmerson Resources Ltd (ERM), Gage Roads Brewing Ltd (GRB), Otto Energy Ltd (OEL), Whitebark Energy Ltd (WBE), MZI Resources Ltd (MZI), Gascoyne Resources ltd (GCY), NTM Gold Ltd (NTM), Novo Resources Ltd (NVO:TSX), Alice Queen Ltd (AQX), Melbana Energy Ltd (MAY), TOX Free Solutions Ltd (TOX), Artemis Resources Ltd (ARV), Apollo Consolidated Ltd (AOP), Vault Intelligence Ltd (VLT), Fleetwood Corp Ltd (FWD), DTI Group Ltd (DTI), Calima Energy Ltd (CE1), Austal Ltd (ASB), Indoor Skydive Australia (IDZ), OZ Minerals Ltd (OZL), NorWest Energy Ltd (NEW), Berkut Minerals Ltd (BMT), Draig Resources Ltd (DRG), Minotaur Exploration Ltd (MEP), Ausdrill Ltd (ASL), Neometals Ltd (NMT), PNX Metals Ltd (PNX), Northern Minerals Ltd (NTU), New Century Zinc Ltd (NCZ)

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Argonaut Morning Note