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02 August 2019 06:50 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,58326,864-281.00-1.05-0.76
S&P 5002,9542,980-27.00-0.90-0.65
NASDAQ8,1118,175-64.00-0.790.03
FTSE 100 Index7,5857,587-2.00-0.030.34
DAX 3012,253064.000.53-2.18
CAC 40 Index5,5575,51939.000.70-0.35
Nikkei 225 (Japan)21,54121,52219.000.09-0.98
HKSE27,56627,778-212.00-0.76-4.54
SSE Composite Index2,9092,933-24.00-0.81-4.44
S&P/TSX Composite Index16,37716,407-30.00-0.18-0.57
NZ 5010,83210,861-29.00-0.262.85
US Volatility (Vix)18
Overseas Market Report

US sharemarkets reversed early gains on Thursday after the announcement on tariffs. But earnings announcements from General Motors, Kellogg, Yum Brands and Verizon were generally seen as positive. So far 74.4% of the S&P 500 companies that have reported earnings have beaten market forecasts. After being up by 311 points, the Dow Jones ended lower by 281 points or 1.1%. The S&P500 was down by 0.9% and the Nasdaq lost 64 points or 0.8%.

Global oil prices slumped by 7-8% following the US decision to lift tariffs on Chinese goods. The concern is that the move will weaken global economic activity and thus oil demand. The Brent crude price fell by US$4.55 or 0.7% to US$60.50 a barrel. And the US Nymex price lost US$4.63 or 7.9% to US$53.95 a barrel. 

Base metal prices were largely lower on the London Metal Exchange. Zinc fell the most, down 1.8%, but tin was flat and nickel rose 0.9%.

The gold futures price fell by US$5.20 or 0.4% to US$1,420.90 an ounce. But after the announcement on tariffs the spot gold price was trading near US$1,443 an ounce in late US trade. Iron ore fell by US$4.45 or 3.8% to US$113.90 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent60.5065.05-4.55-6.99-7.01
Oil - West Texas crude54.2753.950.320.59-3.52
Gold Spot $/OZ1,440.001,445.00-4.90-0.341.53
Silver Spot $/OZ16.3016.300.00-0.216.44
Iron Ore117.00116.200.800.713.92
Thermal Coal Newcastle69.5069.500.000.002.13
APAC Hard Coking Coal FOB157.00155.002.001.29-16.49
Aluminium ($US/t)1,7531,771-18.00-1.03-0.99
Copper Mar-18 ($US/lb)2.622.67-4.90-1.86-1.56
Lead ($US/t)1,9781,998-21.00-1.054.52
Nickel ($US/t)14,57814,452126.000.8718.85
Zinc ($US/t)2,3972,442-45.00-1.82-5.22
Tin ($US/t)17,32017,3155.000.03-8.31
Uranium ($US/lb)25.0025.000.000.403.46
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,8726,897-25.00-0.361.94
S&P/ASX 2006,7896,813-24.00-0.352.04
ASX 24 Futures6,712
Australian Market Report

Thursday 1 August - close. The Aussie dollar has sunk to its lowest level against its US counterpart in a decade, and the Australian share market has also finished lower, after the US Federal Reserve said its interest rate cut is unlikely to be the first of many. The Aussie dollar is buying just 68.45 US cents, from 68.93 US cents on Wednesday, after the greenback rallied against other currencies. Apart from a January 3 flash-crash that lasted just minutes, the last time the Aussie dollar was buying less than 68.50 US cents, which is where it was in the depths of the global financial crisis in early 2009. The benchmark S&P/ASX200 index, meanwhile, closed down 23.7 points, or 0.35 per cent, to 6,788.9. The broader All Ordinaries was down 24.8 points, or 0.36 per cent, to 6,871.9.

Ashanti Headlines

Lynas Corporation Ltd (LYC.ASX, 268cps, m.cap A$1.73B with 691.1m SOI, Cash $89.7m (Rare Earths Producer)

  • Malaysian Prime Minister Mahathir Mohamad has indicated LYC will not have to find a way to export low-level radioactive waste stored near its Kuantan plant.
  • The confirmation is a big boost for Lynas in the countdown to its operating licence expiring on September 2. The Company expects a decision from the Malaysian Govt on a licence renewal in mid-August based on recent comments in the Malaysian parliament.
  • Clarification on the waste issue adds to growing optimism around the renewal amid concerns in Japan, the United States and Europe about China increasing its dominance of rare earths supply if Lynas were forced to shut down.

Adriatic Metals PLC (ADT.ASX, 103cps, m.cap A$157.2m with 150.5m SOI, Cash cA$12m, Polymetallic Explorer / Developer)

Ashanti is pleased to be road-showing Adriatic Metals (ASX.ADT) in Perth (13th August), Sydney (14th August) and Melbourne (15th August)

Please be in contact with your adviser or call +61 8 6319 7802 if you would like to arrange a meeting ASAP. 

  • ADT remains one of our preferred mining developers and has been one of the top performing stocks on the ASX over the last 12 months. Highlights include;
    • Large land position in a frontier mining jurisdiction offers great potential for additional resource growth
    • Underlying project fundamentals support a 7+ year mine life at robust margins using spot prices
    • Steady news flow is expected until the end of the year
      • 5 rigs currently drilling on site
      • Maiden JORC Resource for the Rupice deposit and inclusion of precious metals in the historical Veovaca Resource expected in late July / early August
      • Metallurgical test work for Veovaca & Rupice ongoing with early outcomes expected in October
      • This technical work will feed into a scoping study due out year end
      • Bosnian Govt. expected to grant Precious Metals licenses before year end
      • Focus on new target areas to search for possible repetitions of the mineralisation a Rupice, as well as specific drill targets at Jurasevic-Brestic and Borovica prospects
  • Sandfire Resources NL (SFR.ASX, MCap $1.1B)  recently increased their stake to 11.3% through a series of on market purchases.


Have a question? admin@ashanticapital.com.au

ERA Communications