Market Update & Important Indicators:
The Dow Jones Industrial Average climbed toward its first close above 19000 Tuesday in a streak of milestones for U.S. stock indexes. It was Nov. 4 when the blue-chip index last closed below 18000. Since then, a rally following the U.S. presidential election has in particular benefited the shares of industrial companies and banks, bolstering the Dow. The stampede into sectors that have lifted the Dow to new heights "happened so quickly and so parabolically," said Rob Bartenstein, chief executive of Kestra Private Wealth Services. The Dow's late-year surge is also at odds with the index's performance at the start of the year. In January, worries about slowing economic growth in China and its possible spill-over effects sent the blue-chip index to its worst-ever five-day start to a year. U.S. economic data have since improved, and investors have re-embraced stocks. The election of Donald Trump also renewed demand for shares of companies tied to economic growth, particularly in the manufacturing sector. Since Election Day, the Dow industrials were up 3.4% through Monday's close, while the S&P 500 was up 2.7%. The Dow industrials are now on track to end the year up 9.1%, while the S&P 500 is on pace to finish 2016 up 7.7%.
Europe's main equity benchmark marched higher, helped by advances for miners and U.K. manufacturer Rotork, while a fake news release rocked French builder Vinci. The Stoxx Europe 600 rose 0.2% to close at 341.02, adding to the previous day's gain of 0.3%. Controls maker Rotork was the index's biggest winner, surging 13%. The mid-cap British company gave an upbeat update to its revenue guidance, citing in part tailwinds from the Brexit-battered pound.
Asian shares were broadly higher on Tuesday, with the Australian market rising to a one-month high, as oil prices rallied on expectations that key oil-producing countries will agree to a deal to slash production. The S&P/ASX 200 closed up 1.2% at 5413.30 points, its highest level since late October. Meanwhile, Hong Kong's Hang Seng Index was last up 1.5%, and Korea's Kospi added 0.9%. In China, stocks in Shanghai closed at their highest level since Jan. 6, in line with the region's strength. The move came after the nation's central bank fixed the yuan reference level higher Tuesday, ending 12 straight sessions of devaluation. The benchmark Shanghai Composite Index rose 0.9%. Elsewhere, Japanese stocks were initially down slightly, following a 6.9-magnitude earthquake that struck off the eastern coast of Japan early Tuesday, though the impact appeared limited and the Nikkei Stock Average later reversed to gains, and ended up 0.3%.
Australian shares climbed close to a one-month high on Tuesday, led by energy stocks after crude-oil futures rose to a three-week high. The S&P/ASX 200 index ended up 1.2% or 62 points at 5413.3, mirroring gains elsewhere in Asia where Hong Kong's Hang Seng and Korea's Kospi were also deep into positive territory. There was a 1.1% gain in prices of Brent crude–the global oil benchmark–to US$49.42 a barrel as traders upped bets that the Organization of the Petroleum Exporting Countries will reach a production deal at their meeting on Nov. 30.
Copper for delivery in three months was recently up 1% at $5,613/t on the London Metal Exchange. Aluminium prices rose 1.9% to $1,766/t, zinc rose 0.9% at $2,585/t, tin closed up 0.9% at $21,280/t, whilst lead rose 0.9% at 2,177/t. Nickel bucked the trend, losing 0.2% at 11,326/t.
Recent Contacts & Presentations:
Dacian Gold (DCN), Orocobre Ltd (ORE), Alchemy Resources Ltd (ALY), Acacia Coal Ltd (AJC), Minotaur Exploration Ltd (MEP), Northern Minerals Ltd (NTU), Walkabout Resources Ltd (WKT), Antipa Minerals Ltd (AZY), Noxopharm Limited (NOX), Botanix Pharmaceuticals Ltd (BOT), Emerald Resources NL (EMR), Metals of Africa Ltd (MTA), Stavely Minerals Ltd (SVY), 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), Orthocell Ltd (OCC), Capricorn Metals Ltd (CMM), Eve Investments Ltd (EVE)