Market Update & Important Indicators:
U.S. stocks rose Monday, as shares that have lagged behind the postelection rally made up some ground. Investors betting on higher growth and inflation under a new administration have driven shares of banks and industrial companies higher while pulling back from bonds and some dividend-paying shares. Those moves eased Monday, with U.S. government bonds strengthening and bond-proxies like utilities and real-estate shares outperforming financials. The S&P 500 real-estate sector rose 0.9. The sector had risen 0.5% from Election Day through Friday, compared with the S&P 500's 5.5% gain over that period. Telecom stocks climbed 1.2% Monday. The utilities sector rose 0.2% after falling 1.2% from Nov. 8 through the end of last week. Now that the Federal Reserve has raised interest rates and the end of the year is approaching, many investors see few catalysts left to trigger big moves. Energy stocks were among Monday's worst performers, falling 0.6% in the S&P 500.
Asia stocks were broadly lower Monday as China markets continued to be rattled by a bond selloff and by fresh signs of a slowdown in the country's property market. Japan's Nikkei Stock Average slipped 0.1%, Hong Kong's Hang Seng Index closed down 0.9% and Korea's Kospi was off 0.2%. Chinese stocks edged down amid fears that money was exiting China's capital markets, amid a selloff in government bonds. China's 10-year bond futures were down 1.1% Monday. The Shanghai Composite closed down 0.2% and the Shenzhen Composite sank 0.4%. Chinese metals futures tumbled Monday during late trade, as growing inventory and Beijing's calls to curb asset bubbles prompted panic selling, said analysts. The benchmark futures contract, traded on the Dalian Commodity Exchange, slumped 7.2%. Steel rebar futures fell 5.7%. The growth of housing prices in China decelerated sharply in November, reined in by property-buying controls in major cities and regulators' greater scrutiny of loans made to developers. That compares with a 1.1% gain in October. Japanese export volumes jumped 7.4% in November from a year earlier, driven by overseas demand for semiconductors, ships and metals, according to data released Monday by Japan's Ministry of Finance.
Australian shares shrugged off a deterioration in the federal government's budget to advance Monday, taking back last week's dip as banks pushed higher and a lift in oil prices buoyed energy stocks. With most sectors finishing in positive territory, the S&P/ASX 200 rose 29.2 points, or 0.5%, to 5562.1. The ASX 200 slipped 0.5% over last week but is headed for a strong year, up 5% so far in 2016 after declining in 2015. The Australian currency weakened slightly against the U.S. dollar but the stock market wasn't rattled by the government forecast of widened budget deficits and slower growth in the coming years. The government stuck to its pledge to return a surplus in the next five years. Although S&P Global Ratings continues to question Canberra's ability to close existing budget deficits, it joined other major rating firms in keeping Australia's AAA rating unchanged.
The London Metal Exchange's three-month copper contract settled down 2.5% at $5,496/t. All other base metals fell on Monday, with aluminium down 0.2% at $1,721/t, zinc down 4.5% at $2,589/t, tin down 0.1% at $21,300/t, nickel down 2.6% at $10,826/t and lead down 3.4% at $2,154/t.
Recent Contacts & Presentations:
Australis Oil & Gas Ltd (ATS), Davenport Resources Ltd (DAV), TFS Corporation Limited (TFC), Emmerson Resources Ltd (ERM), Syntonic Ltd (SYT), MZI Resources Ltd (MZI), Resolute Mining Ltd (RSG), Capricorn Metals Ltd (CMM), Eve Investments Ltd (EVE), Australian Mines Ltd (AUZ), Heron Resources Ltd (HRR), St George Mining Ltd (SGQ), Threat Protect Australia Ltd (TPS), Paringa Resources Ltd (PNL), The Gruden Group Ltd (GGL), Primary Gold Ltd (PGO), Vault Intelligence Ltd (VLT), Botanix Pharmaceuticals Ltd (BOT) Orthocell Ltd (OCC), Strandline Resources Ltd (STA) Dragontail Systems Ltd (DTS), ABM Resources Ltd (ABU), Acacia Coal Ltd (AJC)