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04 July 2018 07:51 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average24,17524,307-132.00-0.54-2.57
S&P 5002,7132,727-13.00-0.49-1.23
NASDAQ7,5037,568-65.00-0.86-1.36
FTSE 100 Index7,5937,54845.000.60-1.91
DAX 3012,34912,238111.000.91-3.30
CAC 40 Index5,3175,27740.000.76-2.85
Nikkei 225 (Japan)21,78621,812-26.00-0.12-3.07
HKSE28,54628,955-410.00-1.41-7.91
SSE Composite Index2,7872,77611.000.41-9.84
S&P/TSX Composite Index16,26316,278-15.00-0.091.31
NZ 509,0359,054-18.00-0.204.62
US Volatility (Vix)16
Overseas Market Report

US sharemarkets fell on Tuesday in a shortened session prior to the US July 4 holiday. Shares of American Airlines, United Continental and Delta Air Lines fell by 1-2.3% after Deutsche Bank downgraded all three companies citing concerns over their earnings prospects due to trade tensions. Facebook shares fell 2.4% on reports that the social media company is facing a broader probe into its data sharing with Cambridge Analytica. And a Chinese court temporarily banned Micron Technology (-5.5%) chip sales, pushing down the S&P500 index. The Dow Jones ended lower by 132 points or 0.5%. The S&P 500 index fell 0.5% and the Nasdaq was down 65 points or 0.9%.

Global oil prices rose on Tuesday. US crude oil rose above US$75 a barrel for the first time since November 2014 after Libya declared a force majeure on some of its crude exports. Traders also debated whether production would restart at Syncrude's 360,000barrel a day oil sands facility in Canada after it was hit by a power outage. Brent crude rose by US46 cents or 0.6% to US$77.76 a barrel and the US Nymex rose by US20 cents or 0.3% to US$74.14a barrel.

Base metal prices were mostly lower on the London Metal Exchange (LME) on Tuesday with aluminium and zinc (-1.2%) leading the declines. Copper (-0.6%) fell to 9-month lows on concerns over trade tensions and the spill over to global growth

The gold futures price rose by US$11.80 an ounce or 1.0% to $1,253.50 an ounce. The spot gold price was trading near US$1,253 an ounce in late US trade. Iron ore fell by 5 cents or0.1% to US$63.75 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent77.7677.300.460.601.26
Oil - West Texas crude74.6374.140.490.6615.26
Gold Spot $/OZ1,254.001,253.001.500.12-2.92
Silver Spot $/OZ16.0016.000.000.06-2.34
Iron Ore60.4059.800.701.10-1.34
Thermal Coal Newcastle115.40115.000.300.303.87
Coking Coal FOB ECP AUS193.90196.20-2.30-1.172.70
Aluminium ($US/t)2,0962,121-25.00-1.17-9.25
Copper Mar-18 ($US/lb)2.912.910.300.12-7.18
Lead ($US/t)2,3862,3805.000.22-1.94
Nickel ($US/t)14,35414,464-111.00-0.77-6.68
Zinc ($US/t)2,8442,878-34.00-1.17-8.30
Tin ($US/t)19,73119,825-94.00-0.47-5.12
Uranium ($US/lb)23.0023.000.000.66-0.22
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,3036,27330.000.472.68
S&P/ASX 2006,2106,17832.000.523.06
ASX 24 Futures6,143
Australian Market Report

Tuesday 3 July - close. Australian shares did enough to recoup Monday’s modest losses thanks to gains across three quarters of stocks while the RBA kept rates on hold. A strengthening greenback and US-China-European trade tensions pushed commodity prices substantially lower. Rio Tinto (RIO) was hit hardest, sliding by 3 per cent while BHP Billiton (BHP) and Fortescue (FMG) fell in the order of 1 per cent. The benchmark S&P/ASX200 index rose 32.4 points, or 0.52 per cent, to 6,210.2 points, while the broader All Ordinaries index gained 29.5 points, or 0.47 per cent, to 6,302.8 points.

Ashanti Headlines

Chinalco halts Guangxi rare earth operations after environmental lapses

  • State-owned Aluminium Corp of China, or Chinalco, said on Monday it told its rare earth unit in southern China's Guangxi region to suspend operations after inspectors found the company breached environmental rules
  • According to a company statement, Chinalco's leadership team have ordered the Guangxi unit to swiftly rectify the problems identified and discipline those responsible
  • State-run Chinese media reported earlier on Monday that Guangxi Rare Earth, a unit of Chinalco Rare Earth & Metals Co Ltd that is pursuing an IPO in Shanghai, had been contaminating water sources and carrying out mining activities outside of its permitted areas
  • It is not the first time Chinalco, China's biggest state-owned aluminium producer, has run afoul of the country's stricter environmental regulations.. In May, officials from the company's Lanzhou branch in the northwestern province of Gansu were disciplined for environmental failures
  • This news demonstrates that Chinese environmental authorities are becoming increasingly active in their management of environmental regulations and large SOE's are not immune to the push for a cleaner China 
  • China is the world's biggest producer of rare earths 

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ERA Communications