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07 August 2019 06:50 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,03025,718312.001.21-3.32
S&P 5002,8822,84537.001.30-3.63
NASDAQ7,8337,726107.001.39-4.03
FTSE 100 Index7,1727,224-52.00-0.72-5.05
DAX 3011,5680-91.00-0.78-7.96
CAC 40 Index5,2355,242-7.00-0.13-6.42
Nikkei 225 (Japan)20,58520,720-135.00-0.65-5.34
HKSE25,97626,151-175.00-0.67-9.73
SSE Composite Index2,7782,821-44.00-1.56-7.75
S&P/TSX Composite Index16,14916,272-122.00-0.75-2.37
NZ 5010,67210,58785.000.810.54
US Volatility (Vix)20
Overseas Market Report

US sharemarkets rebounded on Tuesday. Traders were comforted that China had moved to stabilise its currency. Also National Economic Council Director Larry Kudlow said that US President Trump was still planning to host a Chinese trade delegation in September. After being up 321 points, the Dow Jones gained 312 points or 1.2% with the S&P500 up 1.3%, while the Nasdaq lifted 107 points or 1.4%. 

Global oil prices fell 1.5-2.0% on Tuesday to near seven-month lows. Traders watched developments in the US-China trade war. Reuters also reported Iran as telling "European powers on Monday it would further reduce compliance with its 2015 nuclear deal in about a month's time if they were still failing to protect it from crippling U.S. sanctions." The Brent crude price fell by US87 cents or 1.5% to US$58.94 a barrel. And the US Nymex price fell by US$1.06 or 1.9% to US$53.63 a barrel. 

Base metal prices were mixed on the London Metal Exchange on Tuesday. Lead, tin and nickel rose by up to 2.1%. Other metals fell by between 0.1-0.3%. 

The gold futures price rose by US$7.70 or 0.5% to a 6-year high of US$1,484.20 an ounce. The spot gold price was trading near US$1,470 an ounce in late US trade. Iron ore fell by US$1.25 or 1.3% to US$97.90 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent58.9459.81-0.87-1.45-8.24
Oil - West Texas crude53.4553.63-0.18-0.34-7.06
Gold Spot $/OZ1,474.001,474.00-0.60-0.045.32
Silver Spot $/OZ16.5016.400.000.119.78
Iron Ore112.70115.40-2.70-2.36-3.68
Thermal Coal Newcastle68.0068.90-0.90-1.23-10.70
APAC Hard Coking Coal FOB157.00158.00-1.00-0.63-15.02
Aluminium ($US/t)1,7301,734-5.00-0.26-3.04
Copper Mar-18 ($US/lb)2.572.560.900.33-3.48
Lead ($US/t)2,0021,96141.002.077.84
Nickel ($US/t)14,94414,87866.000.4420.34
Zinc ($US/t)2,3022,305-3.00-0.11-4.22
Tin ($US/t)17,02016,907113.000.67-7.27
Uranium ($US/lb)25.0025.000.00-0.203.05
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,5466,711-164.00-2.45-4.18
S&P/ASX 2006,4786,640-162.00-2.44-4.05
ASX 24 Futures6,437
Australian Market Report

Tuesday 6 August - close. Australia's share market has been hammered for a second straight day as it emerges as one of the biggest losers from the intensifying US-China trade war. The benchmark S&P/ASX200 index was down 162.2 points, or 2.44 per cent, to 6,478 points at 1615 AEST on Tuesday, while the broader All Ordinaries was down 164.2 points, or 2.45 per cent, to 6,546.4 points.

Ashanti Headlines

Nickel US$ 14,944/t vs US$14,878/t yesterday - BHP boosts nickel reserves by 77%, gears up for EV market

  • BHP Group is expanding its nickel business and plans to ramp up sales for the electric vehicle (EV) sector, Asset President Eddie Haegel said on Monday at Diggers
  • BHP has increased its nickel reserves by 77% to 1.5mt and has expanded its license area to 13,000sqkm in Western Australia along WA’s southern coast.  
  • A 60kwh nickel-manganese-cobalt (NMC811) battery needs 9kg of cobalt, 11kg of lithium and 70kg of nickel
  • Consumption of nickel in battery usage (approx. 5% of global nickel currently) is growing rapidly in terms of application and has much further room for growth should battery chemistry change to reduce reliance on cobalt.
  • Although not an exclusive requirement, nickel use in batteries is favoured (from a cost perspective) to be supplied by nickel sulphide feedstock. Cassini Resources (CZI.ASX) is scheduled to release a PFS in the SepQ on its West Musgrave Project (OZL 70%, CZI 30%) which is a large scale, low cost nickel and copper project. Cassini’s nickel sulphide concentrate will be suitable for downstream processing into a nickel sulphate battery input and several market commentators believe that such producers may benefit from a premium pricing mechanism. 
  • Cassini Resources remains our preferred ASX listed Ni/Cu development exposure to playing the EV thematic. 

Have a question? admin@ashanticapital.com.au

ERA Communications