Market Update & Important Indicators:
The Dow Jones Industrial Average surged above 26000 for the first time Tuesday but gave up those gains as shares of energy companies slid along with oil prices. The blue-chip index crossed the latest 1000-point milestone soon after the opening bell and rose as much as 283 points, but it later turned lower finishing at 25,793. It closed above 25000 seven trading sessions ago, and, if it reaches the milestone Tuesday, it would be the fastest 1000-point leap in its 120-year history. The historic rise builds on the Dow's 25% gain last year and its seemingly unstoppable climb to start 2018. The Dow industrials slipped less than 0.1%, while the S&P 500 declined 0.4% and the Nasdaq Composite fell 0.4%. Meanwhile, shares of energy companies declined, as oil prices, which had been rallying recently, slid. Energy firms in the S&P 500 fell 0.9%, putting them among the broad index's biggest decliners. The monthly unemployment rate has held at a 17-year low since October, while gross domestic product, has been expanding at a rate of more than 3% in recent months. The U.S. gold price also slipped overnight, falling 0.1% to finish 1,338 US$/oz.
European shares closed higher, with the STOXX Europe 600 index ending up 0.1%, helped by a declining euro and gains in U.S. stocks. Germany's DAX ended 0.35% higher while France's CAC 40 finished 0.1% higher. U.K. stocks closed lower, with the FTSE 100 ending down 0.2%, dragged down by losses in heavyweight miners on falling metal prices and by BP on a $1.7 billion charge over the Deepwater Horizon disaster. Italy's FTSE MIB closed 0.2% lower, hurt by jitters ahead of upcoming Italian elections. Most other European indexes ended in positive territory, with Spain's IBEX 35 up 0.5%.
The start was soft, but Asian stocks strengthened as the day progressed, resulting in a series of fresh multiyear and record highs. The standout was Hong Kong, where Monday afternoon's selloff is but a distant memory as the market powered higher throughout Tuesday's trading, resulting in the Hang Seng jumping 1.8% to top 2007's record closing high as Chinese banks rallied. Japanese stocks rebounded from Monday's selloff, with the Nikkei up 1%, a fresh 26-year high. In China, the Shanghai Composite gained 0.8%, rallying from downbeat trading Monday, and the South Korea Kospi rose 0.7%, its third consecutive day of gains. However, Indian shares snapped a two-session rally after the country's trade deficit widened to a three-year high. The S&P BSE Sensex closed down 0.2%.
Australian stocks ultimately gave up a midday rebound, resulting in the market notably lagging fresh gains elsewhere in Asia Pacific. As overnight weakness in iron-ore prices sent high mining stocks lower, the S&P/ASX 200 fell 0.5% Tuesday after having risen in seven of the past nine days. Energy and bank stocks also were weak and utilities skidded 1.3% to three-month lows. Consumer sectors were the sole gainers as a survey showed consumer confidence is four-year highs.
The London Metal Exchange’s 3-month copper contract traded lower overnight, falling 1.8% to finish at $7,078/t. Most other base metals finished lower overnight. Aluminium prices fell 1.7% to 2,180/t, whilst lead prices shed 1.6% to finish at 2,542/t. Zinc prices were 0.6% weaker at 3,450/t, whilst nickel prices declined the most, dropping 2.5% at 12,482/t. Tin prices bucked the trend rising 0.8% to 20,500/t.
Recent Contacts & Presentations:
Ramelius Resources Ltd (RMS), MOD Resources Ltd (MOD), Greenland Minerals & Energy Ltd (GGG), 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)
Please read Argonaut's Important Disclaimers & disclosures
Log in to the client area below to download the full Morning Note PDF
