Morning Notes

06/02/2019 - Argonaut Morning Note

U.S. stocks rose for a fifth straight day overnight as gains in technology shares outweighed a decline in financials sparked by falling Treasury yields. The Dow Jones rose 0.7% to 25,412 and the S&P 500 climbed 0.5% to 2,738;  Global oil prices fell on Tuesday following recent data that has shown a fall in US factory orders and a slowdown in the US services sector last month, raising concerns about the strength of demand for oil. Brent crude fell 0.7% to $US 62.07/bbl;  Australian stocks registered their biggest gain in more than two years after the Hayne inquiry into misconduct in the financial services sector wasn’t as harsh as expected. The S&P/ASX200 rose 2% to 6,005.90

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05/02/2019 - Argonaut Morning Note

US stocks rose overnight for a fourth straight day of gains with technology shares leading the advance amid rising prospects of a trade truce. The Dow Jones and S&P 500 both climbed 0.7% to 25,239 and 2,725 respectively; Gold fell for a second straight session as the dollar and US treasury yields climbed following strong jobs data Friday, dampening the metal’s appeal as a haven. Gold fell 0.7% to $US 1,311.9/oz;  The Hayne report was released after yesterday’s market close and appears to leave the four pillars of the banking system untouched despite 24 cases being put forward to regulators for civil and criminal breaches of the law

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04/02/2019 - Argonaut Morning Note

The U.K. government is warning that Brexit negotiations are likely to go down to the wire, with the chance of a no-deal split casting a shadow over businesses right up to next month’s deadline; Supply disruptions to seaborne Iron Ore markets are to be less than previously expected as Vale announced that its 40mt of supply cuts as a result of decommissioning its upstream tailings dams will be offset by increasing production elsewhere;  A strong US jobs report has eclipsed weak Chinese economic data to bolster the demand outlook for industrial metals. Several key industrial metals are expected to continue their rebound this year with a possible added boost from a US-China trade agreement;  

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01/02/2019 - Argonaut Morning Note

US stocks made their biggest monthly gain in three years as investor sentiment lifted following better-than-expected corporate earnings and the Federal Reserve’s dovish turn in its latest policy statement. The S&P 500 and the Dow Jones both climbed more than 7% over January; President Donald Trump declared that negotiations in Washington over a possible trade deal with China were making progress but no deal will be final until he meets with Chinese President Xi Jinping;  Gold extended its gains overnight after the Federal Reserve signalled its intentions to be more patient with rate hikes and slowing growth and trade tensions continue to cloud the economic outlook. Gold rose 0.1% to US$ 1,320.7/oz

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31/01/2019 - Argonaut Morning Note

US stocks surged overnight after the Federal Reserve signalled a shift from last month’s policy stance. The Dow Jones climbed 1.8% to 25,015 and the S&P 500 rose 1.6% to an eight-week high of 2,681 after the Fed said it will be “patient” on future interest rate changes; The US and China launched high-level trade talks in Washington overnight with little sign that Beijing will bend to U.S. demands to deepen economic reforms; Global oil prices rose overnight after data showed a smaller-than-expected increase in crude stocks in the last week. Crude inventories rose 919,000, well below forecasts for an increase of 3.2 million barrels. Brent crude increased 0.7% to US$ 61.76/bbl

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