Market Update & Important Indicators:
The S&P 500 edged lower intraday, weighed by declines in shares of energy companies. The Dow Jones Industrial Average fell 26 points, or 0.1%, to 20986. The S&P 500 fell less than 0.1% and the Nasdaq Composite gained 0.3% after both indexes inched higher Monday to settle at records. The U.S. gold price also fell, shedding 0.4% to 1,221.10 US$/oz. Major stock indexes have risen the past few weeks as stronger than expected corporate earnings have helped offset a steep decline in commodity prices. With more than 87% of S&P 500 firms having reported earnings, companies are on track to post their highest proportion of top- and bottom-line beats in 13 years, according to Bank of America Merrill Lynch. Data pointing to health in the U.S. economy may partially explain why major indexes have had few large swings in recent weeks, some analysts say.
European stocks marched higher, with the DAX 30 ending at a record after German trade data exceeding expectations. The Stoxx Europe 600 index closed 0.5% higher at 395.81, ending at its highest level since August 2015. The pan-European benchmark shed 0.1% on Monday after rallying into the French election final on Sunday. Meanwhile, U.K. stocks rose, lifted by gains for mining shares, but utility shares came under pressure on concerns about the prospect of a cap on consumer prices. The FTSE 100 index ended up 0.6% at 7,342.21, marking a fourth straight day of gains. The London benchmark on Monday closed up less than 0.1%.
In Asia, Hong Kong's Hang Seng Index rose 1.3%, supported by a recovery in shares of gambling companies and as Chinese markets pared losses that had been stoked by concerns about a clampdown in speculative trading. Stocks in Shenzhen were up 0.7% while the Shanghai Composite Index was up 0.1% after five sessions of losses. Japanese stocks pulled back 0.3% after Monday's jump to 17-month highs, despite a modest fall in the yen. Japanese wages fell for the first time since last May, government data showed. Bank of Japan Gov. Haruhiko Kuroda said he would act "quickly" to expand stimulus measures if inflation loses traction, but noted no additional steps are needed at the moment.
Speculation that Australian banks face a new federal levy weighed heavily on their shares, offsetting gains elsewhere to pull the wider market lower. According to local media reports, the coming federal budget will include a tax on financial transactions between banks, sometimes known as a Tobin tax, in an effort to raise A$6 billion over four years. Although the structure of the possible tax remains unclear, UBS in a research report estimated that it could reduce profit for the industry by about 5% a year. While analysts suggested the banks have successfully passed on increased funding costs and other headwinds to customers through increased home-loan rates, some questioned whether borrowers would be able to absorb further increases without it hurting lending growth. Reversing most of Monday's gains, the S&P/ASX 200 fell 31 points, or 0.5%, to end at 5839.9.
The London Metal Exchange's three-month copper contract closed up 0.47% at $5,512/t. The other base metals finished mostly higher on Tuesday. Lead prices rose 0.2% at 2,171/t, nickel prices rose 0.7% at 9,174/t whilst zinc prices also rose 0.7% finishing at 2,609/t. Aluminium prices bucked the trend falling 0.5% to 1,865/t whilst tin prices dropped 0.3% to 19,753/t.
Recent Contacts & Presentations:
Apollo Minerals Ltd (AON), Ironbark Zinc Ltd (IBG), Sovereign Metals Ltd (SVM), Pilbara Minerals Ltd (PLS), Laconia Resources Ltd (LCR), Hazer Group Ltd (HZR), Transerv Energy Ltd (TSV), Ausquest Ltd (AQD), Quintis Ltd (QIN), Paradigm Biopharma Ltd (PAR), Pharmaust Ltd (PAA), Strandline Resources Ltd (STA), PharmaNet Group (PNO), Emerald Resources NL (EMR), Echo Resources (EAR), Investigator Resources Ltd (IVR), Beadell Resources Ltd (BDR), Pantoro Ltd (PNR), Botanix Pharmaceuticals Ltd (BOT), Resolute Mining Ltd (RSG), Hotcopper Holdings Ltd (HOT), Prairie Mining Ltd (PDZ) Vital Metals Ltd (VML), Red River Resources Ltd (RVR)
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