Market Update & Important Indicators:
Stocks edged lower Monday, threatening to snap what has been the Russell 2000's longest winning streak in 20 years. The index of small company shares has risen for 15 consecutive trading sessions through Friday. The gains began before the U.S. presidential election, but accelerated following Nov. 8 as investors poured money into U.S.-based companies . The bet has been that President-elect Donald Trump's policies could improve domestic growth, lower corporate taxes and increase infrastructure spending — all of which may benefit smaller, U.S.-based companies that are typically found in the Russell 2000. For the 12 trading sessions following the U.S. presidential election, the Dow industrials rose 4.5% through Friday's close and only fell two days.
In European markets, the Stoxx Europe 600 ended 0.8% lower. Indexes in both Europe and the U.S. were weighed down by falling bank stocks. Financial companies in the S&P 500 were the worst-performing sector, falling 1%. Banks in the Stoxx Europe 600 fell 1.8% ahead of a Dec. 4 referendum on Italian constitutional reform. Many investors are concerned that a "no vote" and the potential political uncertainty that follows could derail plans to shore up the country's fragile banking system. Recent polls suggest the proposed changes are likely to be rejected, an outcome that Prime Minister Matteo Renzi has said would prompt him to resign. Meanwhile, France's CAC-40 index fell 0.9%, roughly in line with its Eurozone peers, after free market social conservative François Fillon won France's centre-right primary over the weekend.
Expectations that a production deal among Organization of the Petroleum Exporting Countries would unravel dominated Asian trade on Monday, adding volatility to regional stocks and currencies. OPEC said Saudi Arabian oil officials won't attend a meeting on Monday with non-OPEC members, including Russia. This intensified concerns that global producers will not be able to reach an effective agreement on production cuts at a critical meeting of the 14-nation cartel on Wednesday. Japan's Nikkei 225 closed down 0.1%, while Hong Kong's Hang Seng Index finished up 0.5%, largely thanks to news over the weekend of the imminent launch of a trading link with Shenzhen. The price of Brent crude, a global benchmark, fell 3.6% on Friday. The Japanese yen was the biggest gainer in Asia on Monday, rising 1%. This as traders sought the safety of the yen on the view that OPEC's production deal was unravelling. The Hang Seng Index strengthened after news Friday that the trading link connecting the Shenzhen and Hong Kong stock exchanges will open Dec. 5, allowing foreigners to invest in China's fastest-growing companies.
Australian shares retreated in cautious trading Monday, with big resources stocks weighing heavily as oil prices faltered ahead of this week's meeting of major crude exporting nations. After ending last week at a three-month high, the S&P/ASX 200 fell 43.4 points, or 0.8%, at 5464.4. The energy sector led broad losses, losing 1.9%, and the basket of materials stocks dropped by 1.3%. Oil weakened in Asian trade after Saudi Arabia said it wouldn't meet with Russia as planned ahead of the Organization of the Petroleum Exporting Countries summit in Vienna on Wednesday.
Copper for delivery in three months was recently up 0.03% at $5,881/t on the London Metal Exchange. In the other base metals, aluminium prices fell 0.7% to $1,745/t. Nickel prices rose 0.6% to 11,583/t, zinc rose 2.8% at $2,886/t, tin closed up 0.7% at $21,255/t, whilst lead rose 5.4% at 2,514/t.
Recent Contacts & Presentations:
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) , Australian Mines Ltd (AUZ), Heron Resources Ltd (HRR), St George Mining Ltd (SGQ), Threat Protect Australia Ltd (TPS), Paringa Resources Ltd (PNL)