Market Update & Important Indicators:
Stocks and commodities rebounded Tuesday following another batch of better-than-expected corporate results. The gains come as U.S. stocks have struggled to maintain a rally in recent trading sessions. The S&P 500 hasn't risen 0.5% or more this month, and it has alternated between gains and losses each trading session for nearly two weeks. The declines have outpaced the advances. On Monday, the index closed at its lowest level in more than a month. On Tuesday, mostly upbeat quarterly earnings reports helped lift U.S. stocks. The Dow Jones Indus trial Average rose 77 points, or 0.4%, to 18164. The S&P 500 gained 0.7% while the Nasdaq Composite rose 0.9%. Healthcare stocks were among the biggest gainers with healthcare companies in the S&P 500 rising 1.2%. Biotechnology stocks also were big gainers on Tuesday, rising 1.4%. With low interest rates among the issues that have dogged bank stocks worldwide throughout the year, data issued Tuesday showing U.S. consumer price inflation increased by the most in five months kept markets anticipating the Federal Reserve is still set to raise rates, albeit at a slow pace.
European stocks notched their strongest daily advance in nearly a month, with the charge led by gains in bank shares. The Stoxx Europe 600 leapt 1.5% to 342.48, the biggest percentage rise since Sept. 22, according to FactSet data. All sectors moved up, topped by the financial and utility groups. Within financials, bank shares bounced up, pushing the Stoxx Europe 600 Bank Index up more than 2%.
Asian shares gained Tuesday as weak economic data from the U.S. prompted traders to dial back expectations the Federal Reserve would raise interest rates in December. The Korean Kospi gained 0.6%. Hong Kong's Hang Seng Index closed up 1.6% with Shanghai Composite Index closing up 1.4%. Chinese economic data unveiled Tuesday was more salubrious — banks ramped up lending in September, with much of the new credit going to homebuyers. Chinese financial institutions issued 1.22 trillion yuan ($181.05 billion) of new yuan loans in September, up from 948.7 billion yuan in August, data from the People's Bank of China showed. In Japan, the Nikkei Stock Average recouped earlier losses and closed up 0.1%. In Hong Kong, casino shares rebounded after sharp declines in the previous session. That followed news of the detention of employees at Australia's Crown Resorts by Chinese authorities for alleged gambling crimes, a development that sparked fears of wider clampdowns by Beijing.
Australian shares snapped a run lower over the last four sessions, rising Tuesday alongside equities across the region after weaker-than-expected U.S. data somewhat dampened expectations for a rate increase before the end of the year. Banks helped drive broad gains, recovering from weakness Monday. Pulling back from a three-week low, the S&P/ASX 200 rose 22.1 points, or 0.4%, to close at 5410.8. The four largest banks collectively added more than 5 points to the index, while miners, utilities and property trusts also lent weight to the day's push higher.
The London Metal Exchange's three-month copper contract closed up 0.1% at $4,681/t. Other base metals closed mixed on Tuesday. Aluminium prices fell 1.4% to $1,632/t and lead fell 0.7% to $1,960/t. Zinc rose 0.4% to $2,271/t, tin rose 1.1% to $19,678/t and nickel rose 1.1% to $10,367/t.
In this Issue:
Paladin Energy (PDN) | September Q Results – Record low costs | SPEC BUY
Market Cap $274m | Current Price $0.16 | Target Price $0.21
Paladin Energy (PDN) released September Q results with 1.3M U3O8 from Heinrich (75% PDN, 25% China National Nuclear Corp.[CNNC]) at record low C1 costs of US$16/lb, beating Argonaut’s forecast of 1.0Mlb at US$23/lb. Cash at September 30 was US$27.6m CNNC for the divestment of a further 24% of Langer Heinrich for US$175m. Finalisation of this transaction is expected late-2016 or early-2017, with funds to be used towards repayment of the US$212m CBs due April 2017. Argonaut maintains a SPEC BUY recommendation with a revised target price of $0.21 (previously $0.23).
Recent Contacts & Presentations:
Antipa Minerals Ltd (AZY), Vault Intelligence Ltd (VLT), Noxopharm Ltd (NOX), Gage Roads Brewing Co. (GRB), West African Resources (WAF), Cedar Woods Properties Ltd (CWP), Sino Gas & Energy Holdings Ltd (SEH), Salt Lake Potash Ltd (SO4), Kalina Power Ltd (KPO), Austal Limited (ASB), Agrimin Ltd (AMN), Stavely Minerals Ltd (SVY), MGC Pharmaceuticals Ltd (MXC), Vital Metals Ltd (VML), Tox Free Solutions Ltd (TOX), Swick Mining Services Ltd (SWK), Davenport Resources Ltd (DAV), Orthocell Ltd (OCC), BC Iron Limited (BCI), ALT Resources Ltd (ARS), Gascoyne Resources Ltd (GCY), Dacian Gold (DCN), Orocobre Ltd (ORE), Alchemy Resources Ltd (ALY), Acacia Coal Ltd (AJC)