Market Update & Important Indicators
U.S. stocks bounced higher intraday, heading for a second day of gains, as investors parsed a flurry of earnings reports. The Dow Jones Industrial Average rose 107 points, or 0.4%, to 26255. The S&P 500 added 0.3% and the Nasdaq Composite advanced 0.2%. Major indexes stumbled earlier this week, puncturing what had been an unprecedented streak of gains for U.S. stocks, as government bond yields hit multiyear highs. Still, stocks remain near records, with the S&P 500 and Dow industrials less than 2% below their closing highs reached Friday. While some analysts have warned that a sharp rise in rates could pressure stocks, making their yields look less attractive compared with risk-free U.S. Treasurys, others say solid earnings growth and fiscal stimulus should help keep major indexes climbing. The U.S. gold price traded higher overnight, adding another 0.2% to finish at 1,348.30 US$/oz.
European stock gauges finished with sizable losses as February kicked off, falling for a fourth session in a row as global bond yields extended their recent climb. The Stoxx Europe 600 index dropped 0.5% to end at 393.52, turning negative after a morning gain. It closed at a four-week low, cutting its 2018 gain to 1.1%. Germany's DAX 30 index tumbled 1.4% to close at 13,003.90, also ending at a four-week low. France's CAC 40 index shed 0.5% to 5,454.55, while the U.K.'s FTSE 100 index lost 0.6% to finish at 7,490.39.
Some Asian stock markets rebounded after a broad pullback that started the week, but Chinese equities weakened again following another muted manufacturing reading, weighing on Hong Kong stocks. Chinese investors dumped tech stocks, with the Shenzhen Composite, home to smaller companies, closing down 3% to hit levels last seen in mid-July. The Shanghai Composite reversed modest early gains and closed down 1%. Telecoms companies and industrials led declines. Hong Kong's Hang Seng was recently down 0.4% after rising as much as 0.5% early on. Japan's Nikkei Stock Average closed up 1.7%, ending a six-day losing streak and leading the region's gainers. Meanwhile, Taiwan's Taiex gained 0.5%.
Turning their back on continued underperformance in January, Australia stocks notched their biggest gain in three months. Settling near session highs, the S&P/ASX 200 climbed 0.9% to 6090.1, a three-week best and putting it on pace for a second-straight weekly gain. The major banks helped drive the push, as Commonwealth Bank and Westpac each jumped 1.5%. Energy shares also managed solid gains after oil prices strengthened overnight; Santos, Oil Search and Woodside each climbed at least 1%. Only the telecom sector showed red as Telstra took back some of Wednesday's strong rise.
The London Metal Exchange’s 3-month copper contract traded flat overnight, finishing at $7,119/t. The other base metals were mostly higher. Aluminium prices gained 0.3% to $2,225/t, while lead prices jumped 2.5% to close at $2,687/t. Zinc prices added 0.3% to $3,606/t, and Nickel prices gained 3.0% to $13,966/t. Tin prices bucked the trend though, pulling back 1.4% to close at $21,550/t.
In this issue
Gage Roads (GRB) | On track | HOLD
Market Cap $80m | Current Price $0.093 | Valuation $0.080
GRB posted a stronger 2Q, with proprietary brand volumes demonstrating further growth. This increased brand awareness as GRB rolls out a well-articulated craft strategy has garnered attention, and longer term we believe investors will be rewarded if the strategy continues to unfold to plan. Further, with increasing brand awareness, particularly on the east coast, the potential for corporate interest cannot be ignored. Our recent hold call (which we maintain) reflects share price gains of nearly 150% over the last 6 months and a current valuation of $0.080 (prior $0.078).
Recent Contacts & Presentations
Melbana Energy Ltd (MAY), Genesis Minerals Ltd (GMD), Proteomics International Laboratories Ltd (PIQ), Ramelius Resources Ltd (RMS), MOD Resources Ltd (MOD), Greenland Minerals & Energy Ltd (GGG), Walkabout Resources Ltd (WKT), Marindi Metals Ltd (MZN), Volt Power Group Ltd (VPR), PharmAust Ltd (PAA), Alice Queen Ltd (AQX), Jervois Mining Ltd (JRV), St George Mining Ltd (SGQ), Overland Resources Ltd (OVR), Metro Mining Ltd (MMI), Botanix Pharmaceuticals Ltd (BOT), Xanadu Mines Ltd (XAM), Orthocell Ltd (OCC), Whitebark Energy Ltd (WBE), Atrum Coal Ltd (ATU), Minotaur Exploration Ltd (MEP), Panoramic Resources Ltd (PAN)
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