Key News Overnight:
U.S. stocks dropped as political unrest in Argentina and Hong Kong hit investors already nervous about trade tensions. Losses deepened in afternoon trading, boosting Treasuries and sending 10-year yields down 10 basis points.
Argentina’s assets tanked after a populist opposition candidate routed President Mauricio Macri in a shock primary election result. The peso tumbled as much as 25% against the dollar in thin trading, suggesting the worst may be yet to come.
Gold’s spectacular rally is just getting started if hedge funds have their way. Prices the highest in more than six years, and Goldman Sachs Group Inc. and Citigroup Inc. predict bullion could climb about 6% to $1,600 an ounce in as little as six months.
The world’s largest copper miner is selling bonds, taking out loans and selling non-structural assets to secure funding for its multibillion-dollar upgrade projects only four months after saying it didn’t need to raise money this year or next. Codelco agreed to borrow $300m and sold two bonds for a combined $180m of funding.
In This Issue:
SCEE (SXE) | Contract awards | BUY | Analyst | Ian Christie
Monadelphous (MND) | Rail maintenance | Not covered | No rating
Bardoc Gold (BDC) | Shallow gold intercepts at South Castlereagh | Not covered | No rating
Saracen Mineral Holdings (SAR) | Reserve update underpins 7-year life | SELL | Analyst | Matthew Keane
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