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08 July 2019 07:47 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,92226,966-44.00-0.163.61
S&P 5002,9902,996-5.00-0.184.07
NASDAQ8,1628,170-8.00-0.105.42
FTSE 100 Index7,5537,604-50.00-0.663.02
DAX 3012,56912,630-61.00-0.494.34
CAC 40 Index5,5945,621-27.00-0.484.28
Nikkei 225 (Japan)21,74621,70244.000.204.13
HKSE28,77528,796-21.00-0.076.71
SSE Composite Index3,0113,0056.000.196.48
S&P/TSX Composite Index16,54216,589-47.00-0.281.92
NZ 5010,60310,615-13.00-0.125.52
US Volatility (Vix)13
Overseas Market Report

US sharemarkets fell from record highs on Friday after the release of solid US jobs data. Traders sharply scaled-back their expectations of an interest rate cut of half a percentage point by the US central bank at its next policy meeting on July 30-31. The Dow Jones fell by almost 44 points or 0.2% after being down by 232 points earlier in the session. The S&P500 was also down by 0.2%. And the Nasdaq fell by 8 points or 0.1%. The Dow and S&P 500 both rose more than 1% over the week while the Nasdaq gained nearly 2%. 

Global oil prices rose on Friday. US-Iranian tensions and an extension to output cuts by OPEC and its allies boosted prices. The Brent crude price rose by US93 cents or 1.5% to US$64.23 a barrel. And the US Nymex price rose by US17 cents or 0.3% to US$57.51 a barrel. But Brent recorded a 3.5% weekly loss and the Nymex shed 1.6% - the first weekly loss since mid-June. 

Base metal prices were mixed on the London Metal Exchange (LME) on Friday. Zinc declined by 1.3% as spreads weakened, signalling increased supply. Lead (-0.4%) also fell, but nickel was up by 1.2%. Copper (-1.5%) posted its biggest weekly loss since May on demand concerns. 

The gold futures price fell by US$20.80 an ounce or 1.5% to US$1,400.10 an ounce. The spot gold price was trading near US$1,399 an ounce in late US trade. Over the week gold fell by US$13.60 an ounce or 1%. Iron ore fell by US$8.05 or 6.6% to US$114.25 a tonne as the China Iron & Steel Association urged the Chinese government to maintain order in the steel market. Over the week iron ore fell by US$3.70 a tonne or 3.1%.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent64.4364.230.200.311.80
Oil - West Texas crude57.7057.510.190.336.87
Gold Spot $/OZ1,397.001,399.00-2.10-0.154.20
Silver Spot $/OZ15.0015.000.00-0.01-0.13
Iron Ore114.50116.00-1.50-1.3216.17
Thermal Coal Newcastle76.2077.00-0.80-1.044.60
APAC Hard Coking Coal FOB184.80184.800.000.00-5.98
Aluminium ($US/t)1,7841,7840.00-0.012.35
Copper Mar-18 ($US/lb)2.662.68-2.10-0.781.35
Lead ($US/t)1,8561,864-8.00-0.44-2.52
Nickel ($US/t)12,41812,270148.001.216.56
Zinc ($US/t)2,4042,434-31.00-1.25-6.79
Tin ($US/t)18,35518,358-3.00-0.02-4.95
Uranium ($US/lb)25.0024.000.000.200.82
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,8326,80131.000.454.70
S&P/ASX 2006,7516,71833.000.504.77
ASX 24 Futures6,678
Australian Market Report

Friday 5 July - close. The Australian share market closed with a gain of 33 points or 0.5%, ending higher for a fifth straight session on Friday. The market has not risen each day of a trading week since November last year. Over the course of the last 5 days the market rose by 2%, marking the best weekly gain in about 2 months. Key influences this week centred around an easing of trade tensions between the US and China, following the G20 Summit last weekend. Closer to home, a second rate cut in as many months from the RBA, in addition to tax cuts delivered by the Australian Parliament, each played a part in pushing the ASX 200 to the best levels since November 2007.

Ashanti Headlines

Pensana Metals Ltd: (PM8.ASX, 2.7cps, m.cap A$38.3m with 1,463.7m SOI, Cash $6m, Rare Earths explorer)

  • Pensana have released further high grade NdPr intersections from its diamond drilling programme at Longonjo
  • A programme of 16 shallow diamond core holes sited as twins to previous RC holes have been completed to provide information and samples for the PFS  technical work programmes:  
    • for metallurgical optimisation testwork   
    • geotechnical information for open pit engineering design   
    • density determinations for Mineral Resource estimation   
    • twinning of RC drilling for Mineral Resource estimation
  • Highlights include:
    • LJD015: 12 metres at 11.6% REO including 1.82% NdPr from surface  
    • LJD016:  10 metres at 9.13% REO including 1.53% NdPr from surface  
    • LJD022:  22 metres at 5.40% REO including 1.09% NdPr from surface  
    • LJD025:  12 metres at 6.00% REO including 1.26% NdPr from surface
  • Interestingly, the drilling has also intersected high grade fresh rock mineralisation over a large area immediately below the weathered zone which extends over an area of 500 X 150 metres and remains open to the north and with depth
  • End of hole intersections of fresh rock include:
    • LRC136: 10 metres at 4.61% REO including 0.84% NdPr from 12 metres to end of hole
    • LRC113: 5 metres at 4.94% REO including 0.98% NdPr from 22 metres to  end of hole
  • In addition to the fresh target, several other mineralised positions remain open along strike within the weathered zone and remain to be drill tested.
  • Executive Director Dave Hammond commented, “Our strategy is to fast track Longonjo into early production based on the high  grade weathered zone mineralisation. These diamond core intersections have confirmed the very high NdPr grades  that exist from surface within the area targeted for initial development by the  PFS. We are also excited by the tremendous potential for additional mineralisation  that remains within the Longonjo Project. Indications that a large zone of high grade fresh rock hosted mineralisation may  lie immediately beneath the weathered zone adds a whole new dimension to the project and is something we will now be factoring into our development  studies. There are also a number of areas of the surface weathered zone mineralisation that remain to be tested and around the margins of the carbonatite there are several kilometres of ring dyke structures that could also be mineralised. From an exploration perspective there is still a long way to go before Longonjo reveals its full potential.”  
  • Please see link to full announcement here
  • Please contact your adviser of the desk on +61 8 6169 2668 should you wish to discuss further


Have a question? admin@ashanticapital.com.au

ERA Communications