Overseas Market Report – U.S. Stocks Finish Mixed on Growth Concerns
U.S. stocks ended mixed Thursday as concerns about global growth and its impact on U.S. economic health kept the desire to buy beaten-down stocks in check.
The Institute for Supply Management said its manufacturing index dropped to 50.2% last month from 51.1% in August, reflecting a stronger dollar and weaker global economy that is hampering U.S. exports. Although this is the lowest level in two years, a number above 50% indicates that more companies are expanding than shrinking.
Meanwhile, U.S. auto sales were strong in September and Labour Day weekend deals fuelled sales for the big three automakers, which all turned in double-digit percentage increases, according to reports.
The Labour Department said the number of people who applied for U.S. unemployment benefits rose by 10,000 to 277,000 in the week ended 26 September. Initial claims remain low overall, which is a sign of labour market improvement.
At the close the Dow was down 0.1%, while the S&P 500 and NASDAQ were each up around 0.2%.
For Australian ADRs listed on the NYSE, BHP Billiton added 45 cents (1.42%) to $32.07, ResMed gained 27 cents (0.53%) to $51.25, Telstra Corporation rose 23 cents (1.17%) to $19.88, Spark New Zealand slipped 6 cents (0.63%) to $9.46 and Westpac increased 9 cents (0.43%) to $21.14.
At 7:45 AM (AEST), the 10-year Treasury note yield was 2.04% and the 5-year yield was 1.37%.
Shares of Dunkin Brands Group Inc. (DNKN) fell after the company said growth slowed in a key sales number in the third quarter and store traffic declined. Though the company reiterated its sales and earnings outlook for 2015, it also announced plans to close 100 Dunkin' Donut shops over the next 15 months.
European markets were mixed.
The FTSE 100 gained 0.20%, while the French CAC 40 slid 0.6% and Germany's DAX lost 1.6%.
Asian shares were higher.
The Shanghai Composite gained 0.5%, the Nikkei 225 was up 1.9% and the Hang Seng was up 1.4%. India's Sensex was up 0.3%.
Australian Market Report – Local Market Expected To Open Lower
Ahead of the local open, SPI futures were 18 points lower at 5,063.
Thursday 1 October – close. The Australian market continued its winning streak on the first trading of the month. The local share market opened higher this morning on the back of positive leads from offshore markets, and hovered at its intraday highs during afternoon trade, to close above the barrier of 5,100 points. All sectors finished in the green, with energy being the best performer. The Australian dollar appreciated against most major currencies.
The All Ordinaries jumped 85.50 points to 5,144.10 while the S&P/ASX 200 soared 90.50 points to 5,112.10.
In This Issue – Argonaut Research
Dacian Gold (DCN) | Mt Morgans Scoping Study | SPEC BUY
Dacian Gold (DCN) delivered a Scoping Study (SS) on its 100% owned Mt Morgans project, demonstrating a scalable (~220koz pa in years 1-5), high margin, Australia domiciled project. Incorporating the study parameters, Argonaut’s target price based on a stand-alone scenario increases from A$0.70 to A$1.05 (parameters on page 2), and our valuation based on a Goldfields (GFI:SJ) scenario (see note Fields have eyes released on 25th September) increases from A$1.45 to A$1.60. DCN remains one of Argonaut’s preferred emerging gold producers given AUD denominated costs, exploration upside and proven management. Given scalable inventory and proximity to infrastructure, DCN is likely to attract corporate attention. Speculative Buy maintained.
Recent Contacts & Presentations
Orbital (OEC), Intueri Education (IQE), OBJ Limited (OBJ), TFS Corporation (TFC), HRL Holdings (HRL), Tox Free Solutions (TOX), Sino Gas & Energy (SEH), Dacian (DCN), Carnarvon Petroleum (CVN), Otto Energy (OEL), Empire Oil & Gas (EGO), FAR Limited (FAR), Central Petroleum (CTP)