Morning Notes

11/10/2018 - Argonaut Morning Note

US Stocks tumbled the most since February as fresh concerns about the impact of the trade war with China roiled technology and industrial shares. The broad selloff took the S&P 500 to the lowest in three months, the Dow Jones plunged as much as 836 points and the Nasdaq tumbled more than 4% for its worst day in seven years; Trump blamed the Fed for the falls, after the comments earlier in the weak from FOMC Chair Powell and colleagues suggested there was further tightening ahead; Gold advances 0.6% as traders assess falling equities and rising interest rates that would boost the metals allure as a safe haven.

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10/10/2018 - Argonaut Morning Note

Tech stocks rebounded from a three-day rout but failed to lead the broader market higher, while yields on Treasuries retreated from a seven-year peak amid rising trade tensions and a sketchy outlook for global growth; US materials stocks performed their worst since February this year as PPG Industries raised flags for the auto sector; Nickel was the big winner on the LME rallying 3% as inventories declined, while Aluminium fell a further 1% as supply concerns eroded – Norsk Hydro ASA agreed on Monday to resume aluminium production at 50% capacity;  Chinese copper demand has been so strong over the past few months that top producer Codelco has almost sold out of supplies for next year, well ahead of schedule, according to the Chairman of the Chilean state-owned company;

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09/10/2018 - Argonaut Morning Note

US equity markets recover in light trading due the Columbus Day holidays, the Dow closed up 40 points after early declines of over 250 points. The VIX index rose to 15.69, up 35% in 3 sessions; The US Treasury markets were closed, ahead of $230bn of debt auctions this week; Gold dropped the most in 2 months on the strength of the USD, breaking down through $1,200 and touching lows of $1,185 before bouncing. Indian imports of gold rose in September ahead of the Diwali festival on November 7th; The Canadian equity and treasury markets were closed for Thanksgiving; 

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08/10/2018 - Argonaut Morning Note

Technology stocks took another leg down on Friday, dragging major US stock indexes lower and putting the tech-heavy Nasdaq Composite on track for its worst week since early US-Spring; The sentiment shift occurred as the stock market’s momentum appeared to stall in the face of higher long-term bond yields; Norsk Hydro ASA said it’s ready to restart the world’s biggest alumina refinery at 50 percent capacity after getting approval from Brazilian authorities to use a new technology to treat waste; Palladium is regaining its appeal among money managers, who have boosted bets on a price rally for the longest stretch since August of last year; The People’s Bank of China lowered the required reserve ratio for some lenders by 1 percentage point, effective from Oct. 15, according to a statement on its website on Sunday. The cut will release a total of 1.2 trillion yuan ($175 billion), of which 450 billion is to be used to repay existing funding facilities. This is a continued step to a looser monetary policy stance;

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05/10/0218 - Argonaut Morning Note

US stocks fell the most since June and volatility spiked higher as the rout in treasuries that took yields to multiyear highs fuelled a repricing of risk assets; Norsk Hydro ASA’s announcement that it will shut a major refinery threw the aluminium market into chaos on Wednesday; A day later, scepticism over the plan started to emerge. Aluminium rose to the highest since mid-June as investors weighed the fallout from the temporary closure of the Alunorte refinery for alumina (See Orient Express for More); Saudi Arabia, the world’s largest crude exporter, raised pricing for all oil grades for sale to Asia and the Mediterranean region as market concerns mount that demand may outpace supply; Oil dropped (the most in seven weeks) from the highest price in almost four years amid signs of a growing crude surplus.

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