Key News Overnight:
In an extraordinary move overnight, the US Federal Reserve has cut the US Federal Funds Rate by 50 basis points, as an emergency measure to protect the US economy from the expected impacts of the coronavirus.
RBA delivers its coronavirus cut; Australian monetary policy was the star attraction in markets for a little while yesterday. The RBA cut interest rates as expected by 25 basis points, in a move to “support the economy as it responds to the global coronavirus outbreak”.
The gold price rose by US$49.80 an ounce or 3.2% to US$1,640.10/oz. Iron ore fell by US$1.00 or 1.1% to US$87.85 a tonne. Base metal prices were mixed on Tuesday. Zinc, nickel and copper fell by up to 2.7%. Other metals rose by 0.4-0.7%.
Global oil prices were mixed on Tuesday after the OPEC+ technical panel recommended additional cuts in crude oil production. The OPEC+ nations meet on Thursday. Investors derived some comfort from the US Fed rate cut and comments from G7 finance ministers.
In This Issue:
OZ Minerals (OZL) | Carrapateena hits nameplate | BUY | Analyst: Matthew Keane
Independence Group (IGO) | Farm-in in the Paterson Province | BUY | Analyst: Matthew Keane
China Macro: Global Coordination | Analyst | Helen Lau
Peet (PPC) | SCEE (SXE) | Matrix (MCE) | Valmec (VMX) Australian Gold Sector | Perenti (PRN) | GR Engineering (GNG) | SRG Global (SRG)