Market Update & Important Indicators:
The S&P 500 and Dow Jones Industrial Average slipped Friday but ended the week just above where they started. The declines came after all three major U.S. stock indexes notched records on the same day for the first time since 1999 on Thursday. It was the ninth record for the S&P 500 in 2016 and the eighth for the Dow Jones Industrial Average – a turnaround from the start of the year when global markets tumbled. Stocks have reached milestones in large part because of continued support from central banks. Investors are sceptical that the Federal Reserve will raise interest rates soon, while central banks in Europe and Japan have loosened monetary policy. This has left stocks from emerging markets to the S&P 500 on an uptrend and global developed-market bond yields plumbing all-time lows. Federal-funds futures, which are used to place bets on central-bank policy, showed Friday that investors and traders see a 6% likelihood of a rate increase at the Fed's September meeting. The Dow Industrials slipped 0.2% and the S&P 500 fell 0.1%. The Nasdaq Composite rose 0.1% to a new record close.
European stocks ended a choppy session in the red on Friday after weaker-than-expected U.S. retail sales cast doubt on the health of the world's largest economy. The Stoxx Europe 600 dropped 0.2% to close at 346.09. For the week, it ended 1.4% higher. "Retail sales stalling despite further improvements being recorded in the U.S. jobs market is going to lead to some anxieties over possible slowing domestic growth in the U.S.," said Lukman Otunuga, research analyst at FXTM.
Stocks advanced in Asia on Friday, catching an updraft from record highs in the U.S. that offset disappointing economic news from China. The Nikkei Stock Average closed up 1.1% at its highest level since the start of June. Hong Kong's Hang Seng Index rose 0.8%, while South Korea's Kospi closed 0.1% higher. On Thursday, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite Index all closed at record levels. It was the first time since 1999 the U.S. indexes have managed that feat, propelled by firmer oil prices and stronger-than-expected earnings from the retail sector. Sharp gains in property and banking shares on Friday led the Shanghai market to its highest level in a month, as investors bet that the Shenzhen-Hong Kong stock-connect scheme would soon be formalized. The Shanghai Composite Index closed up 1.6% at 3050.67, its biggest single-day gain since July 12.
Resources stocks helped buoy Australia's equities market Friday, helping it notch a weekly gain. After a choppy session, the S&P/ASX 200 finished up 22.9 points, or 0.4%, at 5530.9. That left it up 0.6% for the week, reversing last week's decline. The basket of energy stocks led the market, gaining 1.7% for the day following an overnight rally in oil prices after comments by Saudi Arabia's energy minister raised hopes the country might be willing to revisit talks with the Organization of the Petroleum Exporting Countries on limiting production.
Copper prices sank to a five-week low on Friday as a glut of Chinese data pointed to an economic slowdown for the world's largest consumer of the metal. Copper for September delivery settled down 2.3% at $2.1400 a pound on the Comex. Other base metals were mixed. Aluminium was up 0.5% at $1,643/t, zinc was down 1.7% at $2,233/t, nickel was down 4% at $10,261/t, lead was up 0.2% at $1,829/t, and tin was down 0.8% at $18,180/t.
Recent Contacts & Presentations:
Heron Resources (HRR), Gascoyne Resources (GCY), Vimy Resources (VMY), West African Resources (WAF), Dacian Gold (DCN), Pilbara Minerals (PLS), Independence Group (IGO), Rio Tinto (RIO), Silver Lake Resources (SLR), Lynas Corporation (LYC), Evolution Mining (EVN), Regis Resources (RRL), Xanadu Mines (XAM), Mincor Resources NL (MCR) , Carbine Resources Ltd (CRB), Antipa Minerals (AZY), Energia Minerals Ltd (EMX), Pantoro Limited (PNR), Boss Resources Ltd (BOE), Metro Mining Ltd (MMI), Metal Bank Ltd (MBK), Actinogen Medical (ACW) ), St. George Mining Ltd (SGQ), Resapp Health Ltd (RAP), Orecorp Limited (ORR), Dimerix Limited (DXB)