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18 June 2019 07:39 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,11326,09023.000.091.35
S&P 5002,8902,8873.000.091.05
NASDAQ7,8457,79748.000.620.37
FTSE 100 Index7,3577,34612.000.160.12
DAX 3012,08612,096-11.00-0.09-1.25
CAC 40 Index5,3915,36823.000.43-0.87
Nikkei 225 (Japan)21,12421,1177.000.03-0.59
HKSE27,22727,118109.000.40-2.57
SSE Composite Index2,8882,8826.000.200.18
S&P/TSX Composite Index16,35316,30252.000.32-0.29
NZ 5010,20910,17039.000.380.28
US Volatility (Vix)15
Overseas Market Report

US sharemarkets rose on Monday ahead of the US Federal Reserve's two-day monetary policy meeting on Tuesday. Boeing shares were up 2.2% after it announced that it will provide parts for British Airways planes made by rival Airbus. It also said that it is considering a re-brand of its 737 "Max" planes. Shares of Array Biopharma surged 56.9% after Pfizer agreed to buy the drugmaker for US$10.6 billion to increase its cancer portfolio. Tech names' Facebook (+4.2%), Netflix (+3.2%) and Apple (+0.6%) were among the strongest performers. The Dow Jones index rose by almost 23 points or 0.1%. The S&P500 index lifted by 0.1% and the Nasdaq rose by 48 points or 0.6%. 

Global oil prices fell after poor US economic data on Monday and Chinese industrial figures on Friday increased concerns about crude demand. Oil prices also dropped on heightened uncertainty as OPEC and its partners continued to struggle to set a date for their next meeting, expected in July. The Brent crude price fell by US$1.07 or 1.7% to US$60.94 a barrel. And the US Nymex fell by US58 cents or 1.1% to US$51.93 a barrel. 

Base metal prices were mixed on the London Metal Exchange on Monday. A strike at Codelco's Chuquicamata mine after failed labour negotiations provided support for copper prices (+0.3%). Zinc (+1.0%) and lead (+0.8%) both lifted. But tin (-1.4%), nickel (- 0.9%) and aluminium (-0.3%) all fell.

The gold futures price fell by US$1.60 an ounce or 0.1% to $1,342.90 an ounce. The spot gold price was trading near US$1,340 an ounce in late US trade. Iron ore fell by US$1.20 or 1.1% to US$108.20 a tonne on China demand concerns.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent60.9462.01-1.07-1.73-15.61
Oil - West Texas crude51.9551.930.020.04-17.22
Gold Spot $/OZ1,339.001,340.00-0.50-0.034.82
Silver Spot $/OZ14.8014.800.00-0.042.96
Iron Ore106.00103.702.402.2921.62
Thermal Coal Newcastle71.2071.40-0.30-0.35-15.40
APAC Hard Coking Coal FOB192.00192.000.000.00-6.11
Aluminium ($US/t)1,7281,733-5.00-0.26-4.36
Copper Mar-18 ($US/lb)2.652.650.200.06-3.64
Lead ($US/t)1,8911,87615.000.814.30
Nickel ($US/t)11,68811,792-104.00-0.88-2.62
Zinc ($US/t)2,5882,56226.001.00-5.91
Tin ($US/t)19,09219,356-264.00-1.36-3.04
Uranium ($US/lb)24.0024.000.000.20-0.81
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,6096,634-24.00-0.362.31
S&P/ASX 2006,5316,554-23.00-0.352.60
ASX 24 Futures6,542
Australian Market Report

Monday 17 June - close. The Australian sharemarket has finished a lacklustre session weaker, held back by a heavy 2.3% fall in the Telco sector. The ASX 200 (XJO) finished the session down 23 points or 0.4% to 6,530.9. Losses in the Energy, Materials, Consumer Staples, IT and Healthcare sectors also held the market back, outweighing gains from the Financial, Industrials, Utilities and Property stocks. while the broader All Ordinaries was up 14.5 points, or 0.22 per cent, to 6,633.6.

Ashanti Headlines

Cassini Resources Limited: (CZI.ASX, 9.5cps, m.cap A$39.5m with 415.5 SOI, Cash $11.3m, Base Metals Explorer)

  • CZI has announced the latest results from its One Tree Hill Prospect with the West Musgrave Project in Western Australia
  • Multiple high-grade Cu intersections in drill hole CZD0099 representing the best results at the One Tree Hill prospect to date
  • Mineralisation is open in all directions
  • CZD0099 High grade results include:
    • 9m @ 2.56% Cu, 0.37% Ni, 0.06% Co & 1.32g/t PGE from 344m within a broader disseminated zone of 40m @ 1.16% Cu from 343m (Zone B)
    • 6.2m @ 3.61% Cu, 0.11% Ni, 0.03% Co & 0.51g/t PGE from 435.8m within 22m @ 1.80% Cu from 435m (Zone C)
    • 0.75m @ 1.71% Ni, 0.52% Cu, 0.10% Co & 2.67g/t PGE from 133m within 44.7m @ 0.35% Cu from 116.3m (Zone A). This is the first significant zone of nickel-rich massive sulphides at this prospect.
  • Cassini Managing Director Richard Bevan commented, “CZD0099 has exceeded our expectations. We’ve intersected several mineralised zones that were effectively blind to previous geophysical modelling, and this presents real opportunities for further exploration success. It’s also worth recognising that whilst this is only our 6th hole at the One Tree Hill Prospect, it is showing all the hallmarks of a major mineralised system with the potential to add future mine life and value to the West Musgrave Project. The exploration results continue to confirm the excellent prospectivity and potential of the Project.
  • Please see link to full announcement here
  • Please contact your adviser or the desk on +61 8 6169 2668 should you wish to discuss further

Bye Aerospace - Aviation industry hears clamour for electric planes

  • Faced with growing calls for action on the climate crisis, aerospace companies gathering for the Paris air show next week are turning their thoughts to a future run on electricity rather than fossil fuels.
  • The scale of the challenge is considerable. The target for net zero carbon emissions by 2050, recommended by the Intergovernmental Panel on Climate Change and embraced by the UK this week, coincides with the expectation that the number of flights will double in the next 20 years.
  • The aviation industry has been an emissions laggard compared with the car industry or power generation, but improvements in the power-to-weight ratio of batteries mean some forms of sustainable aviation for shorter trips are finally coming into view.
  • The industry will move towards hybrid and electric engines for regional travel (below 1,000 miles) much quicker than many think, according to a report published this week by analysts at investment bank UBS. They predict annual demand for about 550 hybrid planes, using a mixture of fossil fuel and electric power, between 2028 and 2040. This would create a $178bn (£140bn) industry over that time period.
  • For traditional manufacturers, investments in electric technology are seen as vital for long-term survival. European manufacturer Airbus, which will have a big presence at Paris and vies with America’s Boeing as the largest planemaker, is investing hundreds of millions of euros in electric technology – although it still has an order backlog of about nine years of carbon-emitting planes.
  • Glenn Llewellyn, general manager for electrification at Airbus, said the company saw “reducing our CO2 emissions as a necessity”. Those who don’t invest heavily could be left behind as carbon emissions regulations become stricter. What we’re talking about is disruptive,” he said. “It’s a combination of technology disruption and societal expectations. There’s huge progress. It’s not enough [yet], it’s not sufficient for our ambitions, but the technology is progressing.”

  • Manufacturers also see other attractions from electric engines. Multiple companies are racing to produce the first air taxis for cities, with much quieter electric propulsion systems and the option of vertical takeoff and landing (VTOL). Airbus-backed Vahana, German startup Lilium and US firm Bell Helicopter – partnered with ride-hailing firm Uber – are among the companies trying to bring air taxis to market, targeting congested journeys such as connections from airports in cities such as New York.

  • Bye Aerospace has developed the eFlyer 2 - an entirely new category, an electric-powered aircraft, pioneering a new design to be an ideal Flight Trainer with compelling economic and environmental benefits. Powered by a Siemens’ electric-propulsion system, with operating costs six-times less than a Cessna 172, it is to be certified under the FAA’s newly revised ‘FAR Part 23’ regulation. This electric aircraft will help address the largest issues in the airline industry: The low number of new pilots successfully completing airline flight training cannot keep pace with the airlines’ commercial-pilot demand. Flight training costs are expensive, and the legacy aircraft training fleet is 50+ years old. CO2 emissions and aircraft noise are major environmental concerns, that fortunately, now along with these other concerns can be effectively eliminated with the eFlyer 2. Using innovative electric technology, the eFlyer 2 offers the promise of disruptively low operation costs. This affordability aspect alone helps answer the #1 objection and leading cause of high student pilot drop-out rates. eFlyer 2 is the perfect platform for training new pilots all over the world.


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ERA Communications