Market Update & Important Indicators
U.S. stocks rallied as investors awaited a U.S. interest-rate decision due later this week. Shares rose as investors tried to position themselves ahead of a two-day meeting of the U.S. Federal Reserve, slated to start on Wednesday, that could lead to the first interest-rate increase in almost a decade. About 46% of business and academic economists surveyed by The Wall Street Journal in the week to last Friday predicted the Fed's first rate increase would come at the September. The Dow rose 1.4% to 16,600 and the S&P 500 gained 1.3% to 1,978.
Contrastingly, stocks in China led most Asia Pacific markets lower ahead of a decision on interest rates in the U.S., while the Nikkei Stock Average eked out a gain despite a tempered assessment of Japan's economy by its central bank. The Shanghai Composite Index closed down 3.5%, deepening a 2.7% loss from Monday. That put pressure on shares in the region. Australia's S&P ASX 200 fell 1.5%, while the Hang Seng Index closed down 0.5%. European stocks finished higher, bouncing back from morning losses and the prior day's retreat. The Stoxx Europe 600 rose 0.8% to end at 356, shrugging off downbeat action in Asian markets.
Metals on the LME were mixed with copper gaining 0.6% to US$2.43/lb while zinc fell 1.1% to US$0.78/lb. Gold was down 0.3% to US$1,105/oz, while Brent rose 1.6% to US$48.12/bbl. The AUD/USD is trading at 0.713.
In This Issue
Thought for the Day
After Diggers in Kalgoorlie last month, the focus for many of the metal and mining companies heads to Colorado. US and many offshore investors will be heading to two of the most important conferences on the calendar.
The Precious Metals summit takes place in Beaver Creek on Sept 16-18th.
ASX companies presenting include; Doray Minerals (DRM), Gold Road (GOR), Gryphon Minerals (GRY), Independence Group (IGO), RTG Mining (RTG), Troy (TRY), St Barbara Mines (SBM).
The Denver Gold Forum takes place from the 20th to 23rd of September.
The ASX will be well represented with Beadell Resources (BDR), Doray (DRM), Endeavour (EVR), Evolution (EVN), Gold Road (GOR), Independence Group (IGO), Kingsgate (KCM), Metals X (MLX), Newcrest (NCM), Northern Star (NST), Oceanagold (OCE), Perseus (PRU), Regis (RRL), Resolute (RSG), RTG Mining (RTG), Saracen (SAR), St Barbara (SBM), Troy Resources (TRY).
With IGO, EVN and NST increasing production and capitalisation profiles in past years, Argonaut believe’s these stocks have become more attractive to North American and international markets. All three should attract attention at these upcoming conferences.
Also of note is the Market Vectors Junior Gold Miners ETF (GDXJ) rebalance, due at the close on Friday.
Recent Contacts & Presentations
Tox Free Solutions (TOX), AWE Limited (AWE), Ausdrill (ASL), GR Engineering (GNG), Medusa (MML), Resolute (RSG), Kingsgate (KCN), Troy (TRY), Northern Star (NST), Sandfire (SFR), Regis (RRL), Saracen (SAR), Sino Gas & Energy (SEH), Dacian (DCN), Buru Energy (BRU), Carnarvon Petroleum (CVN), Otto Energy (OEL), Empire Oil & Gas (EGO), FAR Limited (FAR), Central Petroleum (CTP), Senex Energy (SXY), Ironbark Zinc (IBG)