Market Update & Important Indicators:
The Dow Jones Industrial Average was on track to extend its longest winning streak in almost three months Wednesday, lifted by gains in energy shares as investors continued to weigh President Donald Trump's decision to exit from the Iran nuclear deal. Although the news was widely anticipated by investors, oil prices and shares of energy companies climbed in response, as many investors expect fresh sanctions to hurt Iranian crude exports and reduce global supply. While that could mean higher input costs for many companies, some investors see oil's recent rally as a bullish sign for the broader market. The Dow industrials climbed 0.7% in a fifth straight session of gains. The S&P 500 added 1%, with nine of its 11 sectors rising, while the Nasdaq Composite also advanced 1%. The S&P 500's energy sector extended its recent climb, surging as U.S. crude oil rose 3% to $71.14 a barrel, around its highest level since November 2014. The U.S gold price slipped 0.2% to record 1,312.2 US$/Oz.
European shares ended higher, with the Stoxx Europe rising 0.6% to 392.44, buoyed by oil stocks after President Donald Trump's decision to pull the U.S. out of the Iran nuclear deal. The U.K.'s FTSE 100 index ended up 1.3%, outperforming due to its larger exposure to the oil sector. U.K. oil giants BP and Royal Dutch Shell ended up 3.9% and 3.4%, respectively. France's Total closed up 1.9% and Italy's Eni up 2.8%. Germany's DAX ended up 0.2%, France's CAC 40 up 0.2% and Italy's FTSE MIB up 0.5%. Spain's Ibex 35 also ended up 0.5%.
President Donald Trump's decision to walk away from the Iran nuclear deal continued to ripple through global markets on Wednesday, with investors sending oil prices and shares of energy companies higher in Asia while the yield on 10-year Treasurys climbed above 3%. Asia-Pacific stocks were little changed in light volume Wednesday, mirroring the performance of U.S. benchmarks on Tuesday. Hong Kong's Hang Seng Index edged up 0.4% as oil's bounce gave a boost to shares of petroleum companies across the region. Japan's Nikkei Stock Average edged down 0.4%.
Australia's stock benchmark notched another 3-month closing high, helped by oil's bounce to fresh 3 1/2-year highs after the Iran deal, reversing profit-taking ahead of Trump's announcement. Broad gains for Aussie equities more than offset the 2.8% slide in CBA, the country's biggest local stock by value. Up for a 3rd day and 15th of the past 18, the S&P/ASX 200 climbed 0.3% to 6108 and continues to near January's 10-year high. The energy sector advanced 1.3% to another 3-year best while mining/heavy materials gained
0.8%. Only financials and utilities were in the red.
Overnight, base metals were mostly up on the London Metal Exchange. The 3-month copper contract gained 1% to 6,774/t and the price of tin gained 0.8% to 21,200/t. Zin gained 0.5% to close at 3,062/t, while nickel advanced 0.3% to close 13,863/t. The price of lead was largely unchanged at 2,285/t, and the aluminium price retreated 0.3% to close at 2,375/t.
Recent Contacts & Presentations:
Nexus Minerals (NXM), Great Boulder Resources (GBR), Orthocell (OCC), Northern Minerals (NTU), ABM Resources Ltd (ABU), Vital Metals Ltd (VML), Todd River Resources Ltd (TRT), Pacific Energy Ltd (PEA), Carnarvon Petroleum Ltd (CVN), Australian Mines Ltd (AUZ), Australian Finance Group (AFG), Paladin Energy Ltd (PDN), Cooper Energy Ltd (COE), Medibio Ltd (MEB), Botanix Pharmaceuticals Ltd (BOT), Salt Lake Potash Ltd (SO4), Golden Mile Resources Ltd (G88), NTM Gold Ltd (NTM), 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)