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23 July 2018 07:37 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average25,05825,064-6.00-0.031.94
S&P 5002,8022,804-3.00-0.091.70
NASDAQ7,8207,825-5.00-0.071.66
FTSE 100 Index7,6797,684-5.00-0.07-0.05
DAX 3012,56112,686-125.00-0.98-0.15
CAC 40 Index5,3985,417-19.00-0.350.20
Nikkei 225 (Japan)22,69822,765-67.00-0.290.80
HKSE28,22428,011214.000.76-3.80
SSE Composite Index2,8292,77357.002.05-2.09
S&P/TSX Composite Index16,43516,543-108.00-0.65-0.09
NZ 508,9088,956-48.00-0.54-1.02
US Volatility (Vix)13
Overseas Market Report

US sharemarkets eased slightly on Friday. Shares in General Electric fell by 4.4% after trimming its cash flow target. Shares in Microsoft rose by 1.8% after quarterly earnings beat expectations. Thomson Reuters reported that 87 companies of the S&P 500 have posted results of which 83.9% have beaten consensus estimates. The Dow Jones index fell by just over 6 points or less than 0.1%, the S&P 500 index lost 0.1% and the Nasdaq index fell by 5 points or 0.1%. Over the week the Dow rose by 0.15%, the S&P 500 rose by 0.02% and the Nasdaq lost 0.07%

Global oil prices rose on Friday as the US dollar fell. A weaker greenback improves the purchasing power of European and Asian buyers of dollar-denominated commodities. In addition US oil drillers reduced the number of oil rigs in operation by five to 858. Brent crude rose by US49 cents or 0.7% to US$73.07 a barrel; US Nymex rose by US$1.00 or 1.4% to US$70.46 a barrel. Over the week Brent fell by US$2.26 or 3% and Nymex fell by US55c or 0.8%.

Base metal prices rose by up to 1.8% on the London Metal Exchange on Friday with aluminium up the most while the only decline was by tin (down 0.1%). Over the week lead fell by up to 3.1% but both zinc and aluminium rose by up to 0.8%.

The gold futures price rose by US$7.10 an ounce or 0.6% to $1,231.10 an ounce. The spot gold price was trading near US$1,231 an ounce in late US trade. Over the week gold fell by US$10.10 or 0.8%. Iron ore rose by US10 cents on Friday to US$64.80 a tonne. Over the week iron ore rose by US$1.30 or 2%.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent73.2273.070.150.21-3.08
Oil - West Texas crude68.2868.260.020.03-0.44
Gold Spot $/OZ1,232.001,232.000.400.03-2.92
Silver Spot $/OZ15.5015.500.000.07-5.62
Iron Ore58.8058.800.000.05-2.50
Thermal Coal Newcastle117.70119.30-1.60-1.342.84
Coking Coal FOB ECP AUS173.50173.500.000.00-13.60
Aluminium ($US/t)2,0792,04237.001.82-4.04
Copper Mar-18 ($US/lb)2.752.756.002.23-9.69
Lead ($US/t)2,1162,09719.000.89-11.32
Nickel ($US/t)13,43713,249188.001.42-9.78
Zinc ($US/t)2,6182,59227.001.02-13.80
Tin ($US/t)19,57519,590-15.00-0.08-5.64
Uranium ($US/lb)24.0024.000.000.003.26
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,3776,35522.000.350.87
S&P/ASX 2006,2866,26323.000.370.97
ASX 24 Futures6,207
Australian Market Report

Friday 20 July - close. Australian shares have ended the week higher thanks to gains in financials and energy stocks, even as Friday's session was buffeted by an earlier slide in the Chinese yuan and concerns over escalating global trade tensions. The benchmark S&P/ASX 200 index closed up 23.2 points, or 0.37 per cent to 6,285.9 points, while the All Ordinaries index finished the day 22.4 points, or 0.35 per cent, higher at 6,377.4 points. The S&P/ASX200 finished the week 0.3 per cent higher and is again nearing a new 10-year closing high, after touching above 6,286 points earlier in the month.

Ashanti Headlines

European wind farm investment to drive NdPr permanent magnet demand

  • Vitol, the world’s biggest independent oil trader, is launching a new €200m fund to invest in wind farms in Europe. The privately owned company said it would invest through its VLC Renewables arm and would look to buy minority stakes in up to four projects.
  • By 2025, almost 27% of European electricity will be generated from wind and solar”, according to investment director at Vitol. The fund will be run as a joint venture with Low Carbon which is already focusing on battery storage projects in the UK.
  • The announcement follows oil majors such as BP, Total and Royal Dutch Shell that are also embarking on a round of investments in clean technology as they seek to diversify their businesses and hedge themselves against a decarbonising world. Its decision to invest in wind farm projects is also a bet that wind power, which is becoming more competitive because of technological advances, will start behaving more like coal and natural gas as subsidies are gradually rolled back.
  • Additional wind turbine manufacture will support growing demand for rare earth metals. The wind industry requires an astonishing amount of the minerals, in particular neodymium and dysprosium. One MIT study cited that a 2MW wind turbine contains about 340kg rare earth materials.
  • The global rare earth's market is dominated by Chinese production, environmental mismanagement has resulted in significant degradation in reserve quality, drawing greater demand for ex-China production. Advanced projects such as Greenland Mineral's Kvanefjeld project (ASX.GGG) are well placed to take advantage of the growing rare earth's market.

Have a question? admin@ashanticapital.com.au

ERA Communications