Morning Notes

08/11/2017 Argonaut Morning Note

Market Update & Important Indicators
U.S. stocks fell intraday, threatening to end a five-session win streak for the Dow Jones Industrial Average and S&P 500. Shares of Priceline Group and TripAdvisor posted double-digit losses, putting them among the S&P 500's biggest percentage decliners after the online travel companies disappointed investors with their quarterly results. Meanwhile, falling bond yields pressured bank stocks, and proposed deals swung shares of chip makers and media companies. The Dow Jones Industrial Average fell 36 points, or 0.1%, to 23511. The S&P 500 declined 0.1%, while the Nasdaq Composite fell 0.4%. The U.S. gold price traded lower overnight, slipping 0.5% to finish at 1,274.90 US$/oz.

European stocks ended with losses, led lower by earnings-driven drops for A.P. Moeller-Maersk and Siemens Gamesa Renewable Energy. The Stoxx Europe 600 closed down 0.5% at 394.65, pulling back further from its 52-week closing high of 396.77 logged Nov. 1. Germany's DAX 30 index fell 0.7% to end at 13,379.27, while France's CAC 40 shed 0.5% to 5,480.64. The U.K.'s FTSE 100 slumped by 0.7% to finish at 7,513.11, retreating from Monday's record close.

Earlier, in Asian markets, higher commodities prices helped stocks break through several days of directionless trading, with some equities' benchmarks hitting levels not seen for at least a decade. Oil jumped 3% Monday, much of it within a few hours during U.S. trading after muted reactions in Asian and Europe to the weekend's political developments in Saudi Arabia. That added to recent strength in Asian oil-related stocks, with crude at its highest level since mid-2015 - even while sitting little changed in trading. They helped push the Nikkei up 1.6% after the index’s sluggish start. That allowed it to top its 1996 high and reach levels last seen in early 1992. The Hang Seng's morning gains extended its Monday rebound, in which a near-2% decline was erased by the close, and put the index at fresh 10-year highs. Hong Kong's Hang Seng rose 1.2%. Stocks in Singapore, which are also influenced by oil prices, logged strong morning gains. The Straits Times Index was up 1%, hitting another two-year peak.

Commodities, arguably the most important non-services portion of the Australian economy, helped drive the country's stock index through 2015's high and above 6000 for the first time since early 2008. The S&P/ASX 200 rose 1% to 6014.3, putting the start-of-November gains at 1.8% after rising a 2017-best 4% in October. Major miners BHP Billiton and Rio Tinto rose 3.9% and 2.1%, respectively, to hit their best levels in two and six years, respectively. Meanwhile, oil firm Santos jumped 3.7% to its highest level in 15 months and Woodside bounced 3.4%. But baby-formula maker Bellamy's skidded 6.9% in steady selling, reversing some of last month's surge to one-year highs.

The London Metal Exchange’s 3-month copper contract traded lower overnight, shedding 2.1% to finish at $6,826/t. The other base metals also finished lower. Aluminium prices lost 1.8% to close at 2,113/t, whilst Zinc prices slipped 1.9% to 3,202/t. Lead prices lost 0.6% to 2,489/t, while Nickel prices pulled back 2.1% to close at 12,870/t. Tin prices bucked the trend, firming 0.3% to close at 19,620/t.

Recent Contacts & Presentations
Gold Road Resources Ltd (GOR), Apollo Consolidated Ltd (AOP), De Grey Mining Ltd (DEG), Triton Minerals Ltd (TON), Evolution Mining Ltd (EVN), Silver Mines Ltd (SVL), NTM Gold Ltd (NTM), Gascoyne Resources Ltd (GCY), Southern Cross Electrical Ltd (SXE), MOD Resources Ltd (MOD), Meteoric Resources NL (MEI), Emmerson Resources Ltd (ERM), Gage Roads Brewing Ltd (GRB), Otto Energy Ltd (OEL), Whitebark Energy Ltd (WBE)

Please read Argonaut's Important Disclaimers & disclosures

Log in to the client area below to download the full Morning Note PDF

Argonaut Morning Note