Market Update & Important Indicators
U.S. stocks climbed intraday as investors weighed signs of opposition in Washington to planned U.S. tariffs on steel and aluminium imports. Expectations for escalating trade tensions had dragged down stocks around the world in recent sessions amid concerns about rising materials costs for companies and harm to global exporters. In recent sessions, though, pushback from some senior Republicans has helped soothe investors' nerves. Still, investors are keeping in mind the impact of trade tariffs, as well as ongoing worries about inflation going forward. The Dow Jones Industrial Average fell 30 points, or 0.1%, intraday to 24,093, recouping losses after declining more than 150 points earlier in the session. The DJIA finally closed up 9 points, to 24,884. The S&P 500 rose 0.3%, and the Nasdaq Composite advanced 0.6%, with both indexes heading toward their third consecutive day of gains. The U.S. gold price traded higher overnight, gaining 1.1% to finish at 1334.20 US$/oz.
European stocks posted gains across the board, as concerns over the inconclusive Italian election result and fears of a global trade war ebbed. Markets, however, trimmed advances in the afternoon after U.S. stocks dipped into negative territory. The Stoxx Europe 600 index gained 0.1% to close at 371.36, building on a 1% gain from Monday. Italy's FTSE MIB Index rallied 1.8% to 22,202.50, while Germany's DAX 30 index gained 0.2% to 12,113.87, France's CAC 40 index added 0.1% to 5,170.23, and The U.K.'s FTSE 100 index climbed 0.4% to 7,146.75.
Asia-Pacific stocks rose sharply after opposition in Washington to President Donald Trump's planned U.S. tariffs on steel and aluminium grew. A lack of detail about the plans and pushback from some senior Republicans soothed investor nerves over the possibility of an escalation of trade protectionism. The Nikkei Stock Average led regional gains, rising as much as 2.4% before giving up some of the gains to finish up 1.8%, after hitting its lowest closing level since October a day earlier. South Korea's Kospi was up 1.4% while stocks in Singapore and Taiwan rose around 1.2%. Hong Kong stocks rebounded, with the Hang Seng Index up 1.4% after Monday's 2.3% slide.
Resource stocks led solid gains across most of Australia's equities market, snapping a four-day losing streak amid regional gains stoked by overnight rebounds in Europe and the U.S. Unfazed by Australia's central bank leaving rates on hold for a 19th month, the S&P/ASX 200 maintained earlier gains to finish up 1.1% at 5962.4 — the strongest advance in three weeks. Helping the advance was fresh oil gains, driving a 1.9% jump for energy stocks. Meanwhile, BHP Billiton shrugged off weakness in Chinese iron-ore futures to rise 2.1%. The big banks saw gains less than the ASX 200.
The London Metal Exchange’s 3-month copper contract traded higher overnight, gaining 1.3% to close at $7,004/t. The other base metals again finished mixed. Tin prices closed down 0.6% to 21,502/t, whilst Zinc prices bounced 0.2% to close at 3,305/t. Aluminium prices slid 0.1% more to close at 2,129/t. Lead prices gained 0.5% to 2,432/t, whilst Nickel prices were strongest, advancing 1.8% to finish at 13,626/t.
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Ausmex Mining Group Ltd (AMG), Matrix C&E Ltd (MCE), Austal Ltd (ASB), Decmil Group Ltd (DCG), Ventnor Resources Ltd, Ausdrill Ltd (ASL), Alice Queen Ltd (AQX), PNX Metals Ltd (PNX), Alliance Resources Ltd (AGS), Myanmar Metals Ltd (MYL), Primary Gold Ltd (PGO), Sino Gas & Energy Holdings Ltd (SEH), Australis Oil & Gas Ltd (ATS), Explaurum Ltd (EXU), Whitebark Energy Ltd (WBE), Atrum Coal Ltd (ATU), 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)
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