Market Update & Important Indicators:
U.S. stocks slid Tuesday, extending markets' volatility into a third session. After going two months without a daily move of 1% or more, the S&P 500 was on track for its third in three sessions Tuesday. Global stocks and bonds have swung rapidly in recent sessions as investors have focused on central banks' signals on interest rates. Expectations that interest rates would remain lower for longer have helped fuel a rally in a broad range of financial assets in recent months, from U.S. stocks to emerging-market bonds. Speculation that the Fed could raise rates as soon as next week contributed to a sharp selloff in stocks and government bonds on Friday, but those concerns appeared to abate after three Fed officials said on Monday there is no hurry to move. Energy shares in the S&P 500 fell 2.9% Tuesday, leading declines in the broader index. U.S. crude dropped 3% to $44.90 a barrel after the International Energy Agency slashed its forecast for global oil demand this year amid "wobbling" Asian demand. Now investors face a number of risk factors, including the U.S. presidential elections in November, the possibility of a rate risk before year-end, the U.K. starting formal negotiations to leave the European Union and hopes for a transition from monetary policy underpinning global growth to fiscal policy.
European stocks ended a choppy session firmly lower, as a renewed slump in oil prices drove energy shares lower. The Stoxx Europe 600 dropped 1% to close at 338.72 after rising as much as 0.6% in early trade. The oil and gas sector was putting in the worst performance as it lost 2.8%.
Asian shares started stronger Tuesday after their worst day in two months, but by the session's end found themselves with modest gains at best as worries about U.S. interest-rate policy persist. Fears of a rate increase, which have built in recent days, eased overnight following dovish comments from Federal Reserve Gov. Comments from two other Fed officials offered hope that the central bank may hold off raising rates further at least until year-end. But worries seeped back into the Asian market as the day progressed. Korea's Kospi ended up just 0.4% and the Nikkei Stock Average closed up 0.3%. Hong Kong's Hang Seng Index turned lower late in the session, finishing down 0.3% at 23230. The Shanghai Composite struggled to find direction and hovered near Monday's close throughout the day, ending up 0.1%. Rate concerns look set to return to U.S. stock trading Tuesday, with S&P 500 futures at session lows, down 15 points, after equities there rebounded Monday to their biggest gains in two months.
Ongoing uncertainty over the course of U.S. interest rates held Australian shares back Tuesday, eroding an early rebound to leave the market in the red for a fourth session running. After surging by as much as 1.1% in the initial minutes of trade, taking back some of Monday's slump, the S&P/ASX 200 steadily faded to end down 11.8 points, or 0.2%, at 5207.8 – its lowest finish since July 6. The decline was led by financial and energy stocks, offsetting buying of miners. Stocks popular because of their dividends and sensitive to interest-rate changes have been under renewed pressure of late as fears of a Fed increase have built in recent days.
The London Metal Exchange's three-month copper contract closed up $2 to $4,650.00/t. Other base metals closed mixed on Tuesday. Aluminium fell 0.1% to $1,548/t, zinc fell 1.3% to $2,221/t, nickel fell 2.2% at $9,809/t, tin closed flat at $19,083/t, and lead closed up 0.6% at $1,884/t.
In this Issue:
Orthocell (OCC) | Initiation | SPEC BUY
Market Cap $35m | Current Price $0.38
We initiate coverage of OCC with a speculative buy call. Regenerative medicine is a strong growth area and OCC’s cell therapy and collagen scaffold products have global relevance. With products and therapies being trialled by the medical profession, and near-term regulatory approvals in foreign jurisdictions on the cards, risks should diminish and assist the Company in attracting strategic partners and unlocking value.
Recent Contacts & Presentations:
Orecorp Limited (ORR), Dimerix Limited (DXB), Genesis Minerals Ltd (GMD), Dakota Minerals Ltd (DKO), Breaker Resources NL (BRB), Bard1 Life Sciences Ltd (BD1), Alto Metals Ltd (AME), Birimian Limited (BGS), Antipa Minerals Ltd (AZY), Vault Intelligence Ltd (VLT), Noxopharm Ltd (NOX), Gage Roads Brewing Co. (GRB), West African Resources (WAF), Cedar Woods Properties Ltd (CWP), Sino Gas & Energy Holdings Ltd (SEH), Salt Lake Potash Ltd (SO4), Kalina Power Ltd (KPO), Austal Limited (ASB), Agrimin Ltd (AMN), Stavely Minerals Ltd (SVY), MGC Pharmaceuticals Ltd (MXC), Vital Metals Ltd (VML), Tox Free Solutions Ltd (TOX), Swick Mining Services Ltd (SWK), Davenport Resources Ltd (DAV)
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