Market Update & Important Indicators:
A selloff in bank and biotech shares dragged down U.S. stocks. The Dow Jones Industrial Average fell as many as 248 points Thursday, reversing gains made a day earlier following a prospective deal between major oil-producing nations to cut production levels. Some traders said the market was spooked by a report in Bloomberg News that said some funds that clear derivatives trades with Deutsche Bank have withdrawn some excess cash and positions held at the bank. The Dow industrials were recently down 174 points, or 1%, at 18165 and the S&P 500 was down 0.8%. Financial shares in the S&P 500 dropped 1.4%.
European stock markets pared strong OPEC-fuelled gains on Thursday afternoon, with a pullback in German stocks and weak U.S. housing data curbing investor optimism. The Stoxx Europe 600 index ended the choppy session up 0.04% at 342.72, after trading as high as 346.25 earlier in the day. The benchmark had opened with a solid gain after the surprise decision by the Organization of the Petroleum Exporting Countries late Wednesday to work toward cutting oil production. Crude-oil prices jumped 5.3% on Wednesday, its biggest one-day rise since April, and continued 2% higher on Thursday after a wobbly start to the day. The details of the proposed production cut, however, have yet to be completed at the cartel's meeting in November, leaving investors worried the prospective deal could flop.
Asian stock markets gained broadly on Thursday after major oil producers said an agreement to limit production could be finalized in November. Japan's Nikkei Stock Average closed up 1.4% and Korea's Kospi climbed 0.7%. Hong Kong's Hang Seng Index closed up 0.5% and the Shanghai Composite Index finished up 0.6%. Members of the Organization of the Petroleum Exporting Countries said Wednesday they aimed to cut collective oil output to 32.5 million to 33 million barrels a day, down from 33.2 million barrels a day in August. The group, however, deferred the task of finalizing a plan to make those cuts until November. Overnight, oil prices surged 5.3% on the news, their biggest gain in more than five months. Brent crude, the international oil benchmark, was recently trading at $48.43 a barrel. Gains in Japanese stocks on Thursday were also supported by a weaker yen against the dollar, with the Japanese currency down 0.6%. Exporters benefited as their products became cheaper to ship.
A surge in oil prices buoyed Australian energy shares and encouraged broad buying that lifted the local equities market to a four-week high Thursday. Crude-oil prices surged 5.3% in New York trade, the biggest gain in more than five months, after the Organization of the Petroleum Exporting Countries signalled it could agree to limit production in November. Ending near its highs of the day, the S&P/ASX 200 advanced 58.9 points, or 1.1%, to 5471.3 – its highest closing level since August 30. The energy sector surged 6.3%, while the basket of materials stocks picked up 2.8%. Only the property trusts and healthcare sectors lost ground.
Copper has gotten a boost in recent weeks from encouraging economic data from China, which accounts for 45% of global demand for the metal. The London Metal Exchange's three-month copper contract closed up 0.5% at $4,841/t. Aluminium rose 0.5% to $1,661/t, zinc rose 1.0% to $2,354/t, tin rose 1.2% to $20,140/t and lead rose 3.2% to $2,065/t. Nickel prices fell 2.4% to $10,391/t.
Recent Contacts & Presentations:
Dakota Minerals Ltd (DKO), Breaker Resources NL (BRB), Bard1 Life Sciences Ltd (BD1), Alto Metals Ltd (AME), Birimian Limited (BGS), Antipa Minerals Ltd (AZY), Vault Intelligence Ltd (VLT), Noxopharm Ltd (NOX), Gage Roads Brewing Co. (GRB), West African Resources (WAF), Cedar Woods Properties Ltd (CWP), Sino Gas & Energy Holdings Ltd (SEH), Salt Lake Potash Ltd (SO4), Kalina Power Ltd (KPO), Austal Limited (ASB), Agrimin Ltd (AMN), Stavely Minerals Ltd (SVY), MGC Pharmaceuticals Ltd (MXC), Vital Metals Ltd (VML), Tox Free Solutions Ltd (TOX), Swick Mining Services Ltd (SWK), Davenport Resources Ltd (DAV), Orthocell Ltd (OCC), BC Iron Limited (BCI), ALT Resources Ltd (ARS)