Market Update & Important Indicators
U.S. stocks fell Thursday, pulling back a day after the Federal Reserve's cautious stance on interest rates spurred strong gains. The Dow Jones Industrial Average dropped 104 points, or 0.6%, to 17,959, while the S&P 500 index lost eight points, or 0.5%, to 2,089. Shares of energy companies posted some of the sharpest losses as oil prices retreated, with the S&P 500 Energy Index shedding 1.6%.
Stocks in Australia and Hong Kong both made their largest gains in over a month after investors in Asia took comments by U.S. Federal Reserve Chairwoman Janet Yellen to mean that an interest-rate rise was unlikely in the immediate future. Australia's S&P/ASX 200 rose 1.9% to 5,950.8 points.
U.S. dollar weakness pressured the Japan market. The Nikkei Stock Average ended down
0.4% at 19,477, as the Japanese yen strengthened and continued to trade at its strongest levels against the U.S. dollar in two weeks.
Most metals on the LME rebounded strongly from a three day losing streak, help by a decline in the US dollar. Copper rose 3.2% to US$2.67/lb and nickel gained 2.0% to US$6.23/lb. Gold was up marginally (0.4%) to US$1,171/oz. Brent, the global oil benchmark, fell $1.48, or 2.6%, to $54.43 a barrel on ICE Futures Europe. A global glut of crude sent prices plummeting in the second half of 2014, and analysts estimate the market is currently oversupplied by between 1.0-1.5m barrels a day.
In This Issue
Sirius Resources (SIR) | BUY
Argonaut visited Sirius Resources’ (SIR) Nova project this week. This included a flyover of the Baloo gold prospect and a ground tour of the Nova nickel/copper development site. The key takeaway at Nova was the rapid pace at which the project has commenced. While the market appears to have disregarded Baloo, the potential is still be determined with basement mineralisation yet to be defined. At worst the prospect could provide a shallow, free dig gold oxide tolling opportunity. Argonaut maintains a BUY recommendation and $3.62 target price.
Recent Contacts & Presentations
Beadell (BDR), Pacifico (PMY), Fertoz (FTZ), Atrum (ATU), Doray (DRM), Helix Resources (HLX), Rift Valley Resources (RVY), West African Resources (WAF), Commodities Group (COZ), Pioneer Credit (PNC), Matrix (MCE), Austal (ASB), Ausdrill (ASL), TFS Corporation (TFC), Gage Roads (GRB), Austin Engineering (ANG), Buru Energy (BRU), OBJ Limited (OBJ), Strandline Resources (STA)