Market Update & Important Indicators
U.S. stocks slipped Wednesday, as investors focused on the U.K.'s upcoming vote on membership in the European Union and oil prices fell. Stocks, bonds and currencies around the world have recently moved in lockstep with expectations around Thursday's U.K. referendum, with risky assets like stocks and oil gaining when polls and betting firms suggest a victory for the "Remain" camp, but falling when the odds appear to favour the "Leave" campaign. Energy stocks led losses in the S&P 500, falling 0.4%. U.S. crude oil fell 1.4% to $49.13 a barrel after inventory data showed that U.S. crude supplies fell less than expected last week.
The Stoxx Europe 600 rose 0.4%, following its largest three-day rally since August. London's FTSE 100 gained 0.6%, but investors remained on edge ahead of the referendum. "Clients are more nervous than they were before," said Michelle McGrade, chief investment officer at brokerage TD Direct Investing in London. "It's sitting on your hands, waiting and seeing" ahead of the U.K. vote, she said.
Shares in Japan struggled while most Asian markets made small gains Wednesday, as the U.K.'s coming vote on its European Union membership kept investors from making big trades. The Nikkei Stock Average finished down 0.6%. The Shanghai Composite Index finished up 0.9%, Hong Kong's Hang Seng Index gained 0.6% and South Korea's Kospi was up 0.5%. However, this week investors and traders have been mindful of surprises that could spark volatility in markets. Regional markets have been quiet with trading volumes sluggish in Hong Kong. Tuesday saw 52.6 billion Hong Kong dollars (US$6.8 billion) of shares traded, compared with a 12-month daily average of about HK$78.4 billion.
Australian shares slipped Wednesday, snapping a three-session run higher as investors braced for the outcome of Britain's vote on whether to remain in the European Union. The market faded from a modest gain in the final minutes of trading as losses by mining, consumer staples and healthcare stocks offset slight rises elsewhere. After surging 1.8% on Monday and edging up 0.3% Tuesday following polls suggesting more Britons favour remaining in the EU than leaving, the S&P/ASX 200 finished 3.5 points, or 0.1%, lower at 5270.9. Gold stocks weakened after the fall in the price of the precious metal this week as polls pointed to a reduced chance of Britons voting to exit the EU
Copper futures closed higher in London Wednesday, as a softer dollar boosted demand for the industrial metal. The London Metal Exchange's three-month copper contract was up 0.6% at $4,700 a ton at the PM kerb close, having hit a two-week high earlier in the session at $4,733.50 a ton. Among the other base metals, aluminium closed flat at $1,626 a ton, zinc was up 1.1% at $2,041 a ton, nickel was up 0.4% at $9,183 a ton, and lead was up 0.5% at $1,710 a ton.
In this Issue
Pacific Energy (PEA) | Generating Opportunities | BUY
Market Cap $174m | Current Price $0.47 | Valuation $0.63
Following recent newsflow we reiterate the reasons why we like PEA’s business model. It delivers earnings stability and visibility in a sector where those attributes are hard to find, and has growth potential through its core business as well as via new geographies and alliances. We maintain a buy call on a $0.63 valuation (prior $0.60).
Recent Contacts & Presentations
Galaxy Resources (GXY), Cooper Energy Limited (COE), Evolution Mining (EVN), LWP Technologies (LWP), Walkabout Resources (WKT), Minotaur Exploration (MEP), Peet Limited (PPC), Parmelia Resources (PML), Venturex (VXR), Dacian Gold (DCN), Cudeco (CDU), Resolute Mining (RSG)