Market Update & Important Indicators
U.S. stocks fell Monday, led by a slide in technology shares, one session after an upbeat May jobs report bolstered expectations for higher interest rates later this year. The slide follows three consecutive weeks of losses for the Dow industrials through Friday, while the S&P and Nasdaq have notched two straight weeks of declines. On Monday the Dow Jones Index closed 0.5% lower, or down 83 points, at 17,767, while the S&P 500 closed 0.6% lower.
European stocks fell Monday as a heavy selloff over the past week showed little sign of abating. The Stoxx Europe 600 slid steadily throughout the session and closed 0.9% lower. Germany's DAX index fell 1.2% and has now entered a correction, falling more than 10% since mid-April when it hit a record high.
China shares hit their highest levels in more than seven years Monday, bucking weakness in the region amid concerns about a U.S. interest rate increase later this year. Stocks in Shanghai were up 2.2%, adding to a nearly 9% gain last week, buoyed by expectation of reform in the financial sector and further loosening of monetary policy. The benchmark closed at 5,132, after breaking the 5,000 mark on Friday for the first time since January 2008. Hong Kong's Hang Seng Index ended up 0.2% at 27,316, although caution led to losses elsewhere in the region.
Finding support from the weaker U.S. dollar, most base metals were up on the LME overnight, with copper climbing 0.2% and nickel up 2.0%. Gold inched up 0.1% to $1,174/oz, while Brent crude gained 1.2% to $63.88/bbl.
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GR Engineering (GNG) | BUY
With the Sirius contract locked in, GNG approaches FY16 with significant work in hand. On the back of this our FY16 EBITDA forecast has been raised 18% to $20.6m. A reputation in EPC project delivery, sound balance sheet and attractive dividend yield sets GNG apart from mining service peers and we maintain a buy call on a $1.15 valuation.
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