Overseas Market Report – Stocks Rise Modestly After Data
U.S. stocks rose slightly on Monday on the back of consumer-discretionary and consumer-staples companies, but a fall in oil prices and the release of disappointing data, capped the gains.
Consumer spending rose just 0.1% in February and January's spending was revised lower to a 0.1% gain from an initially reported 0.5% uptick. Incomes rose 0.2% last month. The PCE price index, the Fed's preferred inflation measure, was down 0.1% from the previous month as low energy prices continued to weigh. Prices were up 1% year-over-year. Excluding food and energy, prices were up 1.7% year-over-year.
Pending home sales rose 3.5% last month, well above the 1.8% increase expected by economists. Sales were up 0.7% year-over-year.
At close, the Dow and S&P 500 were up 0.1% and 0.05% whilst the Nasdaq was down 0.1%.
The bidding war for Starwood Hotels (HOT) continued as Chinese insurer Anbang boosted its offer for the firm to $82.75 a share in cash. The Starwood board said this would likely be a superior proposal to Marriott's (MAR) recently sweetened $79.53 cash and stock offer. Starwood shares rose 2.4% on the news.
For Australian ADRs listed on the NYSE, BHP Billiton rose 5 cents (0.20%) to $25.69, ResMed gained 50 cents (0.90%) to $55.97, Telstra Corporation was up 8 cents (0.41%) to $19.80, Spark New Zealand rose 1 cent (0.08%) to $11.94 and Westpac fell 3 cents (-0.13%) to $23.45.
At 8:15AMM (AEDT), the 10-year Treasury note yield was 1.88% and the 5-year yield was 1.36%.
European markets were closed yesterday.
In Asia, the Shanghai Composite was down 0.7% while the Nikkei 225 rose 0.7% on the day. India's Sensex fell 1.5%.
Australian Market Report- Local Markets Expected To Open Lower
Ahead of the local open SPI futures were 12 points lower at 5,069.00.
Local Markets were closed yesterday for the Easter Holiday.
In This Issue
Argonaut Research |Kibaran (KNL) | SPEC BUY
Kibaran (KNL) achieved several important milestones in the past twelve months including the delivery of a positive BFS, granting of a Mining License, a ten-year, 20ktpa binding offtake agreement with ThyssenKrupp and more recently, an MOU inked with Japanese heavyweight Sojitz Corporation. The Epanko Graphite Project is well-advanced, with a relocation action plan being finalised, paving way for debt funding (expected mid-CY16). Whilst the graphite sector is awash with aspiring junior companies, KNL differentiates itself through an advanced project, quality products, experienced management, viable infrastructure solution, a proven jurisdiction and high management ownership of shares. Most importantly, the Company has 75% proposed production under binding offtake agreements with non-Chinese partners to supply traditional and high growth sectors. With a modest market cap, an easily expandable project, experienced management and existing offtake agreements, KNL is well positioned to benefit from the proliferation of battery technology. SPECULATIVE BUY maintained.
Recent Contacts & Presentations
Troy Resources (TRY), Medusa Mining (MML), Red 5 (RED), OBJ (OBJ), Sino Gas & Energy Holdings (SEH), Ausdrill (ASL), Danakali (DNK), Matrix (MCE), OBJ Limited (OBJ), Tox Free Solutions (TOX), Energia Minerals (EMX), Berkeley Energia (BKY) , Finders Resources (FND), 4DS Memory Ltd (4DS) , Bionomics Ltd (BNO), Resolute Mining (RSG), Avanco Resources (AVB), Rift Valley Resources (RVY), Kilbaran Resources (KNL), Pantoro (PNR)