Market Update & Important Indicators:
Gains in shares of Apple and Goldman Sachs Group helped the Dow Jones Industrial Average jump more than 100 points Monday. Solid earnings and hints about U.S. tax cuts have helped reinvigorate appetite for equities in recent sessions. Shares were on track for fresh records again, after U.S. stocks rose last week following President Donald Trump's comments that his plans for lowering taxes were moving ahead of schedule. Shares of banks and industrial companies were among the biggest gainers of the day. Investors also were looking ahead to comments from Federal Reserve Chairwoman Janet Yellen, who is scheduled to appear before the U.S. Senate on Tuesday and the House on Wednesday to give testimony about monetary policy. Investors don't expect another interest-rate increase in the U.S. until June, according to Fed funds futures tracked by CME Group.
European stocks rose, with the benchmark index ending at a more-than-one-year closing high, as investors interpreted U.S. President Donald Trump's recent meetings with international dignitaries as signalling a softer foreign-policy stance. The Stoxx Europe 600 index climbed 0.8% to 370.13, rising for a fifth straight session and logging its strongest close since Dec. 7, 2015 according to FactSet data.
Stocks in Asia also notched up gains Monday as recent actions by U.S. President Donald Trump helped soothe investors' worries about ties between the U.S. and its key Asian trading partners. At a joint appearance over the weekend with Japanese Prime Minister Shinzo Abe, Mr. Trump said the "United States of America stands behind Japan, its great ally, 100%," Mr. Trump also recently affirmed he would abide by the "One China" policy that has underpinned Sino-American relations for many years. Hong Kong's Hang Seng Index added 0.6% and the Shanghai Composite Index was up 0.6%. Japan's Nikkei Stock Average closed up 0.4%, as a weaker yen boosted shares of exporters such as auto makers. The Nikkei's gains came despite a slight slowdown in economic growth for Japan in the fourth quarter, narrowly missing economists' expectations. Elsewhere, Korea's Kospi index added 0.2%, brushing off news of Pyongyang's weekend launch of a ballistic missile.
Australian shares rose to their highest level in four weeks on Monday, as resources stocks led broad gains thanks to a lift in commodity prices. Markets across the region took their lead from Wall Street, where major indexes notched new highs on corporate earnings results and heightened expectations of tax and regulatory reforms aimed at driving growth in the world's biggest economy. Earnings are also in focus locally, with nearly a quarter of the top 200 companies set to release annual or half-year reports this week, CMC Markets chief markets strategist Michael McCarthy said. Finishing near its high of the day, the S&P/ASX 200 rose 40.1 points, or 0.7%, to 5760.7. The materials sector rallied 2.2% after a jump in prices of iron ore, copper and other metals.
On the London Metal Exchange, copper for delivery in three months was up 0.26% at $6,106/t. The other base metals were mixed on Monday. Aluminium prices rose 1.8% at 1,868/t, nickel prices rose 0.6% at 10,680/t, and tin prices rose 2.7% at 19,985/t. Zinc prices fell 0.4% at 2,924/t whilst lead prices were flat at 2,418/t.
In this Issue:
Matrix (MCE) | Pause for results | HOLD
Market Cap $53m | Current Price $0.56 | Valuation $0.65
MCE’s share price has climbed nearly 50% since late December. The gain reflects a balance sheet which should see the Company through a very tough period, while providing management the breathing space to diversify into new products and markets. However, this takes time and we believe evidence of strategy execution is needed to drive further share price gains from here. We recommend pausing for release of the financials and an operational update with the interims later this month. We make no changes to our forecasts or valuation, but downgrade our recommendation from Spec Buy to Hold.
Recent Contacts & Presentations:
St George Mining Ltd (SGQ), Threat Protect Australia Ltd (TPS), Paringa Resources Ltd (PNL), The Gruden Group Ltd (GGL), Primary Gold Ltd (PGO), Vault Intelligence Ltd (VLT), Botanix Pharmaceuticals Ltd (BOT) Orthocell Ltd (OCC), Strandline Resources Ltd (STA) Dragontail Systems Ltd (DTS), ABM Resources Ltd (ABU), Acacia Coal Ltd (AJC), Troy Resources Ltd (TRY), Hazer Group Ltd (HZR), Berkeley Energia Ltd (BKY), Sino Gas & Energy Holdings Ltd (SEH), Sovereign Metals Ltd (SVM), Kin Mining (KIN), Vital Metals Ltd (VML), Mincor Resources (MCR), Dacian Gold (DCN), Leaf Resources Ltd (LER), Alchemy Resources Ltd (ALY), OpenDNA Limited (OPN), MZI Resources Ltd (MZI)
Please read Argonaut's Important Disclaimers & disclosures