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26 July 2018 07:53 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average25,41425,242172.000.684.66
S&P 5002,8462,82026.000.914.52
NASDAQ7,9327,84191.001.174.90
FTSE 100 Index7,6587,709-51.00-0.661.60
DAX 3012,57912,689-110.00-0.872.82
CAC 40 Index5,4265,434-8.00-0.142.75
Nikkei 225 (Japan)22,61422,510104.000.461.22
HKSE28,92128,663258.000.900.14
SSE Composite Index2,9042,906-2.00-0.072.08
S&P/TSX Composite Index16,42116,39031.000.190.86
NZ 508,9398,9345.000.05-0.57
US Volatility (Vix)12
Overseas Market Report

US sharemarkets rose sharply in late trade on Wednesday with the Dow Jones news agency reporting that the European Union (EU) had agreed to ease industrial tariffs. The news reports also indicated that the EU had agreed to import more soybeans from the US. The Dow Jones index rallied as much as 190 points and ended higher by 172 points or 0.7%. Almost all the gains were recorded in the last 20 minutes of trade. The S&P 500 index rose by 0.9% and the Nasdaq index gained 91.5 points or 1.2%.

Global oil prices rose on Wednesday. The US Energy Information Administration (EIA) reported that crude stockpiles fell by 6.1 million barrels in the latest week (forecast was for a fall of 2.3 million barrels) to the lowest levels since February 2015. The EIA also said that crude stocks at the Cushing, Oklahoma delivery hub fell to the lowest levels since November 2014. Brent crude rose by US49cents or 0.7% to US$73.93 a barrel and the US Nymex rose by US78 cents or 1.1% to US$69.30 a barrel.

Base metal prices were mixed on the London Metal Exchange on Wednesday. Aluminium, lead and zinc fell by up to 1.1% while other metals rose by up to 0.6%.

The gold futures price rose by US$6.30 an ounce or 0.5% to $1,231.80 an ounce. The spot gold price was trading near US$1,232 an ounce in late US trade. Iron ore rose by US45 cents or 0.7% to US$65.80 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent73.9373.440.490.67-1.07
Oil - West Texas crude69.4369.300.130.19-1.56
Gold Spot $/OZ1,233.001,232.001.400.11-2.07
Silver Spot $/OZ15.6015.600.000.09-4.13
Iron Ore59.4059.50-0.10-0.10-0.30
Thermal Coal Newcastle119.90119.300.600.504.72
Coking Coal FOB ECP AUS170.00171.70-1.70-0.99-15.34
Aluminium ($US/t)2,0402,064-24.00-1.14-5.55
Copper Mar-18 ($US/lb)2.812.810.600.21-6.06
Lead ($US/t)2,1342,137-3.00-0.15-11.59
Nickel ($US/t)13,57713,49978.000.58-7.30
Zinc ($US/t)2,6302,652-22.00-0.83-9.71
Tin ($US/t)19,84519,76085.000.43-1.71
Uranium ($US/lb)24.0024.000.001.686.62
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,3426,355-13.00-0.210.79
S&P/ASX 2006,2486,266-18.00-0.290.81
ASX 24 Futures6,199
Australian Market Report

Wednesday 26 July - close. The Australian share market has closed lower, hurt by banks, health care and consumer-exposed stocks, including Woolworths and Wesfarmers. The benchmark S&P/ASX200 index was down 18.2 points, or 0.29 per cent, at 6,247.6 on Wednesday, while the broader All Ordinaries fell 13.5 points, or 0.21 per cent, at 6,341.7 points.

Ashanti Headlines

Cameco suspends Production at Canadian Uranium Mine Indefinitely

  • Cameco has just announced that McAuthur River will be placed into permanent care and maintenance. Cameco will lay off 700 employees as a result.
  • Decision comes amid growing uncertainty in Cameco's biggest market as U.S. President Donald Trump threatens to extend metal tariffs to uranium imports
  • "We have not seen the improvement needed in the uranium market to restart McArthur River and Key Lake, Cameo Chief Executive Officer Tim Gitzel said Wednesday in a statement. This means we will extend the suspension of production at McArthur River and Key Lake for an indeterminate duration..... Until we are able to commit our production under long-term contracts that provide an acceptable rate of return for our owners, we do not plan to restart".
  • Cameco had initially said last November that it was suspending operations at its flagship mine in Saskatchewan for 10 months beginning at the end of January -- a move that removed 13.7 million pounds of production and represented 9 percent of forecast global supply in 2018
  • This decision to lay off 700 highly skilled staff is not a decision that is made with a 12-24 month timeframe in mind. Even with a price response sufficient to provide "an acceptable return", it will take time to put the volume of term contracts in place to ensure the mine is sustainable into the longer term. We expect this will remove between 3-5 years' production between now and 2023.
  • These are important developments for uranium equities. Our preferred Uranium exposure on the ASX  / LSE is Berkeley Energia (ASX.BKY) 

Bye Aerospace - Sun Flyer 2 Prototype Siemens Motor Installation Commences

EAA AIRVENTURE OSHKOSH – July 23, 2018 – Aspen Flying Club has reserved 30 “Sun Flyer 2” two-seat all-electric airplanes to use as trainers in its future fleet of aircraft. Aspen Flying Club is located near Bye Aerospace facilities at Centennial Airport, (KAPA), south of Denver, Colorado.

With this significant Sun Flyer purchase reservation, Bye Aerospace now has a large Colorado-based training fleet partner for its high-tech electric aircraft. Aspen Flying Club will also join a customer advisory board to guide the introduction of new Sun Flyer aircraft.  “On behalf of Bye Aerospace’s President, Charlie Johnson, and our entire Sun Flyer team, we thank Greg Garvis and Aspen Flying Club for being a part of launching the electric aviation revolution,” said George Bye, CEO of Bye Aerospace.

EAA AIRVENTURE OSHKOSH – July 24, 2018 - New components are being completed and final assembly is underway with testing to begin soon on the “Sun Flyer 2” prototype using a Siemens electric propulsion motor and inverter.  The work is underway at the Bye Aerospace facilities at Centennial Airport (KAPA), south of Denver, Colorado.

Bye Aerospace, the developer of the Sun Flyer family of aircraft, announced its partnership with Siemens in late May. Siemens will provide the SP70D motor with a 90kW peak (115 HP), and a continuous rating of 70kW (90 HP). The motor is specifically designed for the needs of two-seat class of flight trainers. 

George Bye, CEO of Bye Aerospace, said the Sun Flyer 2 engineering and operations team continues to make significant progress. “The company is on track to receive FAA certification for Sun Flyer 2 in 2020,”

Ashanti will be leading a roadshow throughout Asia alongside Wells Fargo in Q3 with CEO George Bye. Please reach out should you have interest to arrange a meeting or would like an update call. 


Have a question? admin@ashanticapital.com.au

ERA Communications