15/11/2018 – Argonaut Morning Note

Market Update:

Declines in financial and technology stocks, along with lingering worries about slowing global growth, dragged U.S. stocks lower overnight, the Dow Jones fell 0.8% to 25081 whilst the S&P 500 decreased 0.8% to 2702; Global oil prices increased for the first time in 13 trading sessions on growing expectations that OPEC may cut output 1.4 million barrels per day, the IEA has left is forecast for global demand growth for 2019 unchanged at 1.3 million barrels per day; Base metal prices remained steady overnight on the London Metals Exchange as concerns over weak retail sales in China largely offset positive sentiment associated with better-than-expected production and investment data. Zinc added 0.8% whilst nickel fell 0.3%; Major currencies were stronger against the US dollar in US and European trade, the Aussie dollar rose from near US71.86 cents to near US72.35 cents in late US trade; The ASX fell steadily yesterday nearing October lows and underperformed the rest of the Asia Pacific, the ASX All Ords finished down 1.7% to 5822.