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06 November 2018 08:00 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average25,46225,271191.000.76-3.73
S&P 5002,7382,72315.000.56-5.10
NASDAQ7,3297,357-28.00-0.38-5.90
FTSE 100 Index7,1047,09410.000.14-2.93
DAX 3011,49511,519-24.00-0.21-5.09
CAC 40 Index5,1015,102-1.00-0.01-4.81
Nikkei 225 (Japan)21,89922,244-345.00-1.55-7.92
HKSE25,93426,486-552.00-2.08-2.40
SSE Composite Index2,6652,676-11.00-0.41-5.53
S&P/TSX Composite Index15,21815,11998.000.65-4.57
NZ 508,8308,77952.000.59-4.17
US Volatility (Vix)20
Overseas Market Report

US sharemarkets were mixed on Monday. Blue-chip shares rose while technology was weaker. Shares in Apple fell by 2.8%. According to a Nikkei report Apple told its smartphone assemblers to halt plans for additional production lines dedicated to the iPhone XR. Shares in Berkshire Hathaway rose 4.7% in response to earnings news. The Dow Jones was up by 191 points or 0.8%. The S&P500 index was up by 0.6% but the Nasdaq index was lower by 28 points or 0.4%.

Global oil prices were mixed on Monday. The US formally applied fresh trade sanctions on Iran. But eight countries were granted temporary waivers, allowing them to buy oil from the country. The US, Russia and Saudi Arabia are pumping more oil to offset the production lost by Iran. Brent crude rose by US34 cents or 0.5% to US$73.17 a barrel, but the US Nymex price fell by US4 cents to US$63.10 a barrel.

Base metal prices were lower by up to 3.1% on the London Metals Exchange on Monday with lead down the most. But tin fell by just 0.1% while aluminium fell 0.2%.

The gold futures price fell by US$1.00 an ounce or 0.1% to $1,232.30 an ounce. The spot gold price was trading near US$1,230 an ounce in late US trade. Iron ore rose by US$1.70 or 2.3% to US$75.80 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent73.1772.830.340.47-13.06
Oil - West Texas crude62.8763.10-0.23-0.36-15.43
Gold Spot $/OZ1,231.001,232.00-0.20-0.012.36
Silver Spot $/OZ14.7014.600.000.060.02
Iron Ore73.4074.50-1.10-1.4211.19
Thermal Coal Newcastle103.90103.400.500.48-8.58
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,9561,960-4.00-0.20-8.04
Copper Mar-18 ($US/lb)2.762.760.000.00-0.25
Lead ($US/t)1,9061,968-62.00-3.13-3.58
Nickel ($US/t)11,67611,860-185.00-1.56-6.89
Zinc ($US/t)2,5602,600-40.00-1.54-4.01
Tin ($US/t)19,08719,110-23.00-0.120.62
Uranium ($US/lb)29.0029.000.000.174.73
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords5,9335,90529.000.48-5.84
S&P/ASX 2005,8495,81831.000.54-5.43
ASX 24 Futures5,824
Australian Market Report

Monday 5 November - close. The Australian share market has closed lower following a weak lead from Wall Street with energy and healthcare stocks remaining in the red. The benchmark S&P/ASX200 index closed down 31.1 points, or 0.53 per cent, at 5818.1 at 1630 AEDT on Monday, while the broader All Ordinaries fell 31 points, or 0.52 per cent, to 5904.8. 

Ashanti Headlines

Rare Earth Environmental Inspections in China Could Affect Supply

  • China has started a monthlong crackdown on environmental violations by companies mining and producing rare earth elements in eight provinces which could lead to supply disruptions
  • China supplies nearly 80% of the world's supply of rare-earth elements, which are critical to producing components and batteries in everything from smartphones to wind turbines and EV's.
  • Inspections over the next month will focus on environmental protection and business compliance with other rules, including taxes and licensing, the Ministry of Ecology and Environment and the Ministry of Industry and Information Technology announced in a joint Nov. 1 statement.
  • Pollution from rare earth mining has been a problem in China for years and the government is trying to regulate the industry due to its impacts to the environment. 
  • Once the production becomes compliant, the rare earth's groups will not be able to produce below their cost and thus prices will increase over time
  • The biggest impacts could come from inspections in Jiangxi, which supplies around 40% of the country's heavy rare earths, and Inner Mongolia, which has around 83% of the country's rare earth resources
  • Ashanti Capital continues to position in the rare earth sector towards an expected increase in prices in the near term 
  • Please contact the desk on +61 8 6169 2668 should you wish to discuss further

Have a question? admin@ashanticapital.com.au

ERA Communications