Market Update & Important Indicators
U.S. stocks extended gains after the Federal Reserve raised short-term interest rates for the third time this year and said it remains on track to chart a similar course next year. The Dow Jones Industrial Average added 0.5% following a fourth straight day of gains. The S&P 500 rose 0.2% and the Nasdaq Composite climbed 0.3%. The Fed's rate increase was widely expected, with some investors and analysts watching for its economic growth and interest-rate projections for next year. The central bank stuck to its forecast for three more increases in 2018, and revised upward its economic growth projection, a positive for stocks. Some analysts had been concerned that a faster-than-expected pace of rate increases could rattle markets. Investors have said recently that the earnings and economic backdrop remains favourable for stocks moving forward. The S&P 500 has risen to fresh records after posting its longest losing streak since March last week. The U.S. gold price traded higher overnight, rising 1.0% to close at 1,255.50 US$/oz.
European stocks pulled back from a five-week high Wednesday, with investors bracing for an expected hike in borrowing costs by the Federal Reserve, while retail shares were showing strength. The Stoxx Europe 600 index ended down 0.2% at 390.70, pulling back from its highest close since Nov. 8 reached on Tuesday. Among national indexes, Italy's FTSE MIB was hit the hardest as it slid 1.4% to close at 22,400.19. In Frankfurt, the DAX 30 index fell 0.4% to 13,125.64, and in Paris, the CAC 40 dropped 0.5% at 5,399.45. In London, the FTSE 100 closed down 0.1% at 7,496.51.
An earlier fall in the dollar hit Japanese stocks Wednesday. The multinational-heavy Nikkei Stock Average ended down 0.5% as the dollar declined against the yen before recovering. Hong Kong's Hang Seng jumped 1.5%, with bank shares leading the index higher after gains in their U.S. counterparts on Tuesday. South Korea's Kospi index rose 0.8% as reports of South Korea and the U.S. considering delaying joint military drills until after the Pyeongchang Winter Olympics in February helped tourist-reliant companies.
Australia's stock benchmark overcame some mid-afternoon weakness to finish slightly higher as the market benefited from Westfield's $15.7 billion takeover deal. The REIT sector climbed 1.9%, jumping to its best level in more than a year, on the deal. That helped offset weakness in utilities and little movement elsewhere to allow the S&P/ASX 200 to finish up 0.1% to 6021.80, a fresh 1-month closing high and a 5th-straight gain. It's the longest winning streak since October.
The London Metal Exchange’s 3-month copper contract traded higher overnight, gaining 1.0% to finish at $6,729/t. The other base metals finished mixed. Aluminium prices slipped 0.3% to close at 1,989/t, whilst Lead prices gained 0.5% to close at 2,532/t. Zinc prices traded flat at 3,153/t, whilst Nickel prices rebounded 0.3% to 11,039/t. Tin prices fell 2.0% to close at 18,848/t.
In this issue
Strandline Resources (STA) | Tajiri gaining critical mass | SPEC BUY
Market Cap $28m | Current Price $0.11 | Target Price $0.26
Strandline Resources (STA) released positive drilling results from the Tajiri corridor located on the northern Tanzanian coast. Air core drilling at the T1-T4 targets highlighted probable extensions to the current Mineral Resources of 59Mt @ 3.7% total heavy mineral (THM). In addition, a new thick channel/trench zone was discovered east of the T3-T4 strandline deposits. Argonaut estimates up to 40-50Mt could be added to Tajiri in the updated Resource estimate, due Q1 2018. Other newsflow in the new year includes offtake and funding options for the Fungoni Project and the likely commencement of a Tajiri feasibility study. We also anticipate potential monetisation or partnering on the Western Australian Coburn Project. SPEC BUY recommendation maintained with a $0.26 target price.
Recent Contacts & Presentations
Walkabout Resources Ltd (WKT), Marindi Metals Ltd (MZN), Volt Power Group Ltd (VPR), PharmAust Ltd (PAA), Alice Queen Ltd (AQX), Jervois Mining Ltd (JRV), St George Mining Ltd (SGQ), Overland Resources Ltd (OVR), Metro Mining Ltd (MMI), Botanix Pharmaceuticals Ltd (BOT), Xanadu Mines Ltd (XAM), Orthocell Ltd (OCC), Whitebark Energy Ltd (WBE), Atrum Coal Ltd (ATU), Minotaur Exploration Ltd (MEP), Panoramic Resources Ltd (PAN), Sino Gas & Energy Holdings Ltd (SEH), Great Boulder Resources Ltd (GBR), Metallum Ltd (MNE), Gold Road Resources Ltd (GOR), Apollo Consolidated Ltd (AOP), De Grey Mining Ltd (DEG), Triton Minerals Ltd (TON), Evolution Mining Ltd (EVN), Silver Mines Ltd (SVL), NTM Gold Ltd (NTM)