Market Update & Important Indicators:
U.S. stocks slipped Thursday, led by declines in energy and financial shares. Oil prices tumbled, but broader market moves were relatively small. Investors were also looking ahead to Friday's monthly jobs report, a factor for Federal Reserve officials as they contemplate further interest-rate increases. The previous two jobs readings have been strong, but disappointing economic growth in the first half of the year and turmoil in overseas markets have kept the central bank on hold since it last raised rates in December. U.S. crude oil fell 3.5% to $43.16 a barrel after losing 3.6% in the previous session. U.S. crude inventories exceeded market forecasts on Wednesday, adding to concerns about oversupply in the market. The energy sector of the S&P 500 declined 0.9% Thursday and is down 2% so far this week. Bank shares, which have risen recently on heightened expectations the Fed was on track to raise interest rates this year, fell Thursday.
Europe's key stock benchmark finished with a small advance as advances for bank and mining shares helped the regional gauge to start September in the green. The Stoxx Europe 600 rose 0.13 point, or less than 0.1%, to end at 343.66, after the index on Wednesday fell 0.4%.
Asian shares were broadly weaker Thursday as investors cautiously awaited U.S. jobs data, due Friday, that could jolt markets out of their summer malaise. Hong Kong's Hang Seng Index stood out as the region's best performer, reversing early losses to gain 0.9% as China delivered some better-than-expected numbers. The official Chinese manufacturing purchasing managers' index data for August came in at 50.4, versus 49.9 in July, the highest in 22 months and above the 50.0 line that separates contraction from expansion. But the Caixin China manufacturing purchasing managers' index, a private gauge of nationwide factory activity, indicated a slowdown, falling to 50.0 in August from 50.6 in July. Investor excitement was lacking in mainland China, though, with the Shanghai Composite Index closing 0.7% lower and the Shenzhen Composite Index ending down 0.8%. Elsewhere, South Korea's Kospi closed 0.1% lower, and Japan's Nikkei Stock Average ended the session up 0.2%.
A second day of losses for resources stocks drove Australia's equities market to a seven-week low Thursday. Investors across the region are cautiously awaiting the release Friday of U.S. jobs data, a report that could cement forecasts the Federal Reserve will increase interest rates as early as this month. Heightened expectations of a rate rise following last week's Jackson Hole speech by Fed Chairwoman Janet Yellen boosted the U.S. dollar against a raft of currencies in recent sessions, and in turn knocked commodities prices lower. The S&P/ASX 200 finished the day 17.4 points, or 0.3%, lower at 5415.6–its lowest close since July 14. The index is now down 1.8% so far this week. The materials and energy sectors were each 1.7% lower, and now sit down 4.3% and 3.7% this week, respectively.
Copper prices edged lower, after better-than-expected manufacturing data out of China failed to ease concerns over the health of the world's largest copper consumer The London Metal Exchange's three-month copper contract closed up 0.3% at $4,630/t. Other base metals traded higher on Thursday as well. Aluminium closed up 0.3% at $1,596/t, zinc closed up 0.7% to $2,344/t, tin closed up 1.5% to $19,165/t, nickel closed up 1.3% to $9,854/t, and lead closed up 2.6% to $1,924/t.
In this Issue:
Dacian Gold (DCN) | Vectoring in on Cameron Well | BUY
Target price $4.00 | Current price $3.37 | Mkt Cap $450m
Dacian Gold (DCN) released results from recent reconnaissance drilling at the Cameron Well prospect, part of the Mt Morgans Gold Project (MMGP). The program has extended the anomalous gold area from 2km x 1km to 2.5km x 2km, and it remains open to the north and northeast. This growing anomaly highlights the strong prospectively for satellite deposits in the Mt Morgans region. Exploration drilling is also ongoing at regional targets near the Jupiter deposit and Callisto prospect. Argonaut understands the first of two holes at Callisto has been completed and the second hole is underway. DCN is due to release the Definitive Feasibility Study (DFS) on the MMGP in the December Q 2016.
Recent Contacts & Presentations:
Pantoro Limited (PNR), Boss Resources Ltd (BOE), Metro Mining (MMI), Metal Bank Ltd (MBK), Actinogen Medical (ACW), St. George Mining Ltd (SGQ), Resapp Health Ltd (RAP), Orecorp Limited (ORR), Dimerix Limited (DXB), Genesis Minerals Ltd (GMD), Dakota Minerals Ltd (DKO), Breaker Resources NL (BRB), Bard1 Life Sciences Ltd (BD1), Alto Metals Ltd (AME), Birimian Limited (BGS), Antipa Minerals Ltd (AZY), Vault Intelligence Ltd (VLT), Noxopharm Ltd (NOX), Gage Roads Brewing Co. (GRB), West African Resources (WAF), Cedar Woods Properties Ltd (CWP), Sino Gas & Energy Holdings Ltd (SEH), Salt Lake Potash Ltd (SO4), Kalina Power Ltd (KPO), Austal Limited (ASB), Agrimin Ltd (AMN)