Market Update & Important Indicators
U.S. stocks climbed Thursday, buoyed by sharp gains in European markets and strong results from Dow component Cisco Systems Inc. Stocks got an early lift from advancing European markets after French and German leaders brokered a deal to end Ukraine's conflict with Russia-backed separatists. Germany's DAX index gained 1.6%, while the Stoxx Europe 600 index added 0.7%. Meanwhile, Eurozone finance ministers vowed to continue negotiations after six-hour talks failed to find a way to resolve Greece's financial issues. U.S. consumer spending slumped for a second straight month, damping market expectations that the Federal Reserve might move up its timeline for raising interest rates.
European stocks finished at a more than seven-year high Thursday. The Stoxx Europe 600 rose 0.7% to 374.83, its highest close since December 2007, Russia's Micex equity index swung out of the red to close Thursday's session higher by 2.6% at 1,810.11. Meanwhile, Greece's Athex Composite climbed 6.7% to 846.48, extending gains after the European Central Bank raised the amount of emergency assistance that can be provided to Greek banks by 5 billion euros ($5.7 billion), according to German news reports.
The Nikkei Stock Average rose 327.04 points, or 1.9%, to 17979.72, its highest closing level since July 2007. Data Thursday showed Japanese core machinery orders rose more than expected in December, suggesting companies are more willing to spend after an April sales tax increase pushed the economy into recession.
Base metals on the LME finished mostly higher. Gold was flat at US$1,222/oz and WTI crude gained 4.9% to US$51.21/bbl. The AUD is buying US$0.774.
In This Issue
Paladin Energy (PDN)
Paladin Energy (PDN) announced the undertaking of another convertible bond (CB) offering. The Company is aiming to raise US$100m from senior, unsecured CBs, due 31 March 2020. A bookbuild is underway with the coupon price to be determined. Argonaut predicts a rate of 7-9%, higher than the underlying 6% rate on the US$274m 2017 CB. An additional US$50m of senior, unsecured CBs may also be issued to existing or new strategic partners. The Company will remain in a trading halt until 16th February when the offering is completed.
Recent Contacts & Presentations
ABM Resources (ABU), Northern Star (NST), Doray Minerals (DRM), Troy Resources (TRY), Kingsrose (KRM), Red 5 (RED), Otto Energy Limited (OEL), Peninsula Energy Limited (PEN), Sandfire Resources NL (SFR), Atrum Coal (ATU), Empired (EPD), DTI Group (DTI), Austal (ASB), TFS Corporation (TFC), Pioneer Credit (PNC), IMF Bentham (IMF), Sino Gas & Energy (SEH), Orbital Corporation (OEC)