Market Update & Important Indicators:
Gains in the shares of energy and financial firms lifted the Dow Jones Industrial Average on the first day of the third quarter. U.S. stocks climbed to fresh records in the first half of the year, propelled by strong corporate earnings and an improving global economic picture. Yet many investors and analysts expect stock gains to slow the rest of the year, citing recent weakness in inflation data, higher-than-average stock valuations and sliding commodity. The Dow industrials jumped 130 points, or 0.6%, to 21479, hitting a fresh intraday high earlier in the session. The S&P 500 rose 0.2%, and the Nasdaq Composite lost 0.5%. Energy shares led gains in the S&P 500 as oil prices rebounded. U.S. crude jumped 1.5% to $46.74 a barrel, on course for its eighth consecutive session of gains. The U.S. gold price fell heavily overnight, shedding 1.7% to finish at 1,219.70 US$/oz.
European stocks broke a four-session losing streak, buoyed by the commodities sector after upbeat manufacturing data from China and a continued rally in oil prices. Banks also helped to lift the trading mood, rising on hopes of higher interest rates after hawkish comments from central bankers last week. The Stoxx Europe 600 index climbed 1.1% to end at 383.41, marking its first close in positive territory in five sessions. The index on Friday finished at a more-than two-month low and ended the quarter down 0.5%. Shares of miners and oil giants were posting some of the biggest gains. Oil-related companies also got a boost from a continued rally in oil prices, with crude set for an eight straight day of advances. Banks moved broadly higher, as last week's comments from European Central Bank President Mario Draghi and Bank of England Gov. Mark Carney lingered. Both struck a surprisingly hawkish tone, raising expectations of higher interest rates, which tend to help profits in the banking sector. The U.K.'s FTSE 100 index ended 0.9% higher at 7,377.09.
Stocks in Asia mostly inched higher as investors held back on making decisive bets in the absence of a firm lead from the U.S. Hong Kong's Hang Seng added 0.1% after its best first-half performance since 2009, while Japan's Nikkei Stock Average was also 0.1% higher as a central bank survey showed business confidence among the nation's large manufacturers strengthened to its highest level in more than three years in the second quarter. The Shanghai Composite inched up 0.1% after a private gauge of China's factory activity rebounded in June to show an expansion, echoing last week's official data.
A second straight session of broad selling dragged Australian shares to a more than one-week low, marking a cautious start to the new Australian fiscal year. The S&P/ASX 200 ended a choppy session near its lows, down 37 points, or 0.7%, at 5684.5. The index, despite losing ground over the last quarter, climbed 9.3% over the year through June. Despite edging higher in early trading, the major banks built on Friday's sharp declines. Utilities and property trusts also weighed heavily on the market. Only the energy sector eked out a minor gain as crude-oil prices built on recent gains in Asian trade. For the day, 1.85 billion shares were traded with a value of A$4.93 billion, Commonwealth Securities said.
The London Metal Exchange's three-month copper contract lost 0.15% Monday to close at $5,928/t. The other base metals finished mostly higher. Aluminium prices rose 0.4% to 1,921/t, lead prices jumped 1.9% to 2,316/t, tin prices gained 1.2% to 20,465/t, whilst zinc prices rose 1.8% to 2,802/t. Nickel prices finished the day flat at 9,346/t.
Recent Contacts & Presentations:
Emmerson Resources Ltd (ERM), Antipa Minerals Ltd (AZY), Echo Resources Ltd (EAR), Sovereign Metals Ltd (SVM), Calidus Resources Ltd (CAI), Great Boulder Resources Ltd (GBR), Finders Resources Ltd (FND), Bionomics Ltd (BNO), Threat Protect Australia Ltd (TPS), Ramelius Resources Ltd (RMS), Zenith Energy Ltd (ZEN), Blackham Resources Ltd (BLK), Top End Minerals Ltd (TND), Northern Star Resources Ltd (NST), Xanadu Mines Ltd (XAM), Dacian Gold (DCN), Egan Street Resources Ltd (EGA), Alice Queen Ltd (AQX), Paringa Resources Ltd (PNL), AWE Limited (AWE), Saracen Mineral Holdings Ltd (SAR), Red River Resources Ltd (RVR), Vital Metals Ltd (VML)
Please read Argonaut's Important Disclaimers & disclosures
Log in to the client area below to download the full Morning Note PDF
