Market Update & Important Indicators
The Dow has gained more than 300 points as US stocks rallied on higher oil prices and greater optimism over a deal to renegotiate Greece's debt. The Dow Jones Industrial Average jumped 305.36 points (1.76 per cent) to 17,666.40. The broad-based S&P 500 powered higher by 29.18 (1.44 per cent) to 2,050.03, while the tech-rich Nasdaq Composite Index gained 51.05 (1.09 per cent) at 4,727.74. US oil prices surged seven per cent to the highest level of 2015, adding some relief to markets that fear the steep drop in the commodity signals major global economic problems.
Europe's main stock markets rallied, recording a second day of gains on hopes of a deal being struck on Greece's debt, with a rebound in oil prices helping energy shares. The Greek stock market soared by more than 11.3 per cent on Tuesday after Athens. elaborated on its plans that would see repayment of its huge international bailout loans delayed but avoid a politically sensitive write-off of the debt. London's FTSE 100 rose 1.32 per cent to 6,871.80 points, in Paris the CAC 40 rose 1.09 per cent to 4,677.90 points, and Frankfurt's DAX 30 index climbed 0.58 per cent to a record high close of 10,890.95 points. The euro leapt to $US1.1456 from $US1.1343 in New York.
Hong Kong stocks climbed 0.29 per cent while Shanghai surged 2.45 per cent, boosted by a rally in oil prices and hopes for fresh economy-boosting measures by China's leaders. Hong Kong's benchmark Hang Seng Index added 70.04 points to 24,554.78 on turnover of $HK80.31 billion ($A13.27 billion). The benchmark Shanghai Composite Index surged by 76.61 points to 3,204.91 on turnover of 283.4 billion yuan ($A58.02 billion). Tokyo stocks slipped 1.27 per cent as a pick-up in the yen hit exporters. The Nikkei 225 index at the Tokyo Stock Exchange on Tuesday fell 222.19 points to close at 17,335.85.
The Australian sharemarket on Tuesday hit its highest level since the global financial crisis after the RBA rate cut. The market rose by more than 1.4 per cent in its ninth straight day of gains, to close at its highest level since June 2008. The benchmark S&P/ASX200 index was up 82.1 points, or 1.46 per cent, at 5,707.4, while the broader All Ordinaries index was up 79.7 points, or 1.43 per cent, at 5,666.2.
Oil prices have surged higher for a third straight day, hitting late-2014 peaks on hopes of rebounding global energy demand and production cuts that could curb the supply glut. The US benchmark, West Texas Intermediate for March delivery, soared $US3.48, or seven per cent, to $US53.05 a barrel on Tuesday, the highest WTI close since December 31. In London, Brent North Sea crude for delivery in March jumped $US3.16 (5.8 per cent) to settle at $US57.91, its best reading since December 30. WTI has gained $US8.53, or nearly 20 per cent, since the rally began Friday on signs the industry is quickly tightening exploration activities.
Base metals were generally up overnight, with copper the stand out up 3.5% and nickel the only one down by 0.1%. Brent crude climbed another 4.1% to $56.98/bbl and gold dropped 1.0% to $1,260/oz.
In This Issue
MMA Offshore (MRM)
We scale back medium term earnings expectations in the context of a lower oil price environment and associated expected capex cutbacks, in addition to the transition from Australian LNG construction to production. Our FY15 numbers have seen minor adjustments to bring 1H15 PBT in line with Company guidance.
Recent Contacts & Presentations
Northern Star (NST), Doray Minerals (DRM), Troy Resources (TRY), Gold Road Resources (GOR), Saracen Mineral Holdings Limited (SAR), Beadell Resources Limited (BDR), Resolute Mining Limited (RSG), RTG Mining (RTG), Alexium International Group Limited (AJX), Pacific Energy Limited (PEA), Otto Energy Limited (OEL), Peninsula Energy Limited (PEN), Sandfire Resources NL (SFR), Atrum Coal (ATU), Empired (EPD), DTI Group (DTI), Austal (ASB), TFS Corporation (TFC), Pioneer Credit (PNC), IMF Bentham (IMF)