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19 June 2019 06:50 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,46626,113353.001.352.72
S&P 5002,9182,89028.000.972.04
NASDAQ7,9547,845109.001.391.76
FTSE 100 Index7,4437,35786.001.171.28
DAX 3012,3320246.002.030.76
CAC 40 Index5,5105,391119.002.201.31
Nikkei 225 (Japan)20,97321,124-151.00-0.72-1.31
HKSE27,49927,227272.001.00-1.60
SSE Composite Index2,8902,8883.000.090.27
S&P/TSX Composite Index16,50316,353150.000.920.62
NZ 5010,25110,19160.000.580.69
US Volatility (Vix)15
Overseas Market Report

US sharemarkets rose on Tuesday on hopes of a US-China trade deal. Shares of Boeing rose by 5.4% after British Airways owner IAG signed a letter of intent to buy 200 of its 737 MAX jets. The Dow Jones index rose by 353 points or 1.4%. The S&P500 index lifted by 28 points or 1.0% and the Nasdaq rose by 109 points or 1.4%. 

Global oil prices rose by between 2-4% on hopes for a US-China trade deal. Traders also monitored tensions between the US and Iran. Acting US Defense Secretary Patrick Shanahan announced the deployment of about 1,000 more troops to the Middle East. The Brent crude price rose by US$1.20 or 2.0% to US$62.14 a barrel. And the US Nymex rose by US$1.97 or 3.8% to US$53.90 a barrel.

Base metal prices rose by between 0.7% and 1.8% with most metals up greater than 1.3%. Tin rose the least with copper up 1.8%.

The gold futures price rose by US$7.80 an ounce or 0.6% to a 14-month high of $1,350.70 an ounce. The spot gold price was trading near US$1,346 an ounce in late US trade. Iron ore rose by US$3.80 or 3.5% to US$112.00 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent62.1460.941.201.97-13.95
Oil - West Texas crude53.9853.900.080.15-13.99
Gold Spot $/OZ1,346.001,347.00-0.80-0.065.34
Silver Spot $/OZ15.0015.000.00-0.044.12
Iron Ore106.00103.702.402.2921.62
Thermal Coal Newcastle70.8071.20-0.40-0.49-15.81
APAC Hard Coking Coal FOB192.00192.000.000.00-5.42
Aluminium ($US/t)1,7521,72824.001.36-3.06
Copper Mar-18 ($US/lb)2.702.700.100.02-1.62
Lead ($US/t)1,9161,89125.001.315.67
Nickel ($US/t)11,87111,688183.001.57-1.09
Zinc ($US/t)2,6302,58842.001.62-4.38
Tin ($US/t)19,23019,092138.000.72-2.34
Uranium ($US/lb)24.0024.000.000.00-0.81
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,6486,60938.000.582.91
S&P/ASX 2006,5706,53139.000.603.22
ASX 24 Futures6,614
Australian Market Report

Tuesday 18 June - close. Aussie shares added to early gains thanks to further signs of RBA rate cuts with the ASX 200 index lifting by 0.6 per cent or 39.1pts to 6570. The improvement was more than enough to recoup Monday’s falls, while also keeping the index near an 11.5 year high. The Australian market is in its sixth straight month of gains and is up 16 per cent in the 2019 calendar year.

Ashanti Headlines

China to tame illegal rare-earth exports, mulls tracking system

  • China has vowed to impose stern export restrictions on its rare-earth resources and may introduce a tracking mechanism for the rare-earth industry to ensure export compliance, an official said on Monday.
  • Given the intense trading conditions China is facing, the US defense companies might be the first batch of listed purchasers facing a ban by China on rare-earth exports, industry insiders said.
  • Beijing firmly opposes any attempts by any country to use products made with China's rare-earth resources to curb the nation's development, Meng Wei, spokesperson of the National Development and Reform Commission, China's top economic planner, said on Monday.
  • As the largest reserve holder and producing country of rare-earth resources, China will continue to meet reasonable demand of the world market, such as livelihood-related products, Wu Chenhui, a Beijing-based independent rare-earth analyst, told the Global Times on Monday.
  • "Besides, promoting the development of the rare-earth sector has been China's consistent policy, and further enhancing the supervision of the whole industry chain is needed, including producers and end users," he said. Information on both groups might need to be submitted for tracking.
  • Rare Earth's stocks have climbed significantly of late due to trade tensions between the US and China and speculations of a more hawkish trade policy from the latter. Prices of rare earth elements are recorded to have surged 30% this year.
  • Rare Earths were long speculated as the Chinese government's bargaining chip in the ongoing trade dispute with the US, as the Mainland is the biggest global refiner of the material, responsible for almost 90% of the world's Rare Earth supply. Rare Earths are imperative in the production of high-tech products, such as iPhones and Tesla's electric cars. The US is China's largest importer of Rare Earths, and a disruption to the Rare Earth supply chain in the form of restrictive Chinese government policy would affect the US high-tech industry.

Have a question? admin@ashanticapital.com.au

ERA Communications