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08 August 2019 06:50 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,00726,030-22.00-0.09-2.98
S&P 5002,8842,8822.000.08-3.09
NASDAQ7,8637,83330.000.38-2.91
FTSE 100 Index7,1997,17227.000.38-4.64
DAX 3011,650082.000.71-7.12
CAC 40 Index5,2675,23532.000.61-5.77
Nikkei 225 (Japan)20,51720,585-69.00-0.33-4.73
HKSE25,99725,97621.000.08-8.24
SSE Composite Index2,7692,778-9.00-0.32-5.61
S&P/TSX Composite Index16,26516,149116.000.72-1.20
NZ 5010,82910,78642.000.392.10
US Volatility (Vix)19
Overseas Market Report

US sharemarkets lifted from lows over Wednesday's session. Recession fears gripped markets in response to lower bond yields. And the energy sector weakened in response to a slump in oil prices. Shares in Walt Disney fell 5% in response to earnings news. After being down 589 points, the Dow Jones finished lower by 22 points or 0.1%. But the S&P500 was up 0.1%, while the Nasdaq lifted almost 30 points or 0.4%. 

Global oil prices fell by over 4.5% to 7-month lows on Wednesday. Central banks across the globe have cut interest rates, causing traders to worry about the outlook for crude oil demand. In addition US crude oil inventories rose by 2.4 million barrels in the past week, rather than falling by 2.8 million barrels as traders expected. Gasoline stocks rose 4.4 million barrels with distillates up 1.5 million barrels. The Brent crude price fell by US$2.71 or 4.6% to US$56.23 a barrel. And the US Nymex price fell by US$2.54 or 4.7% to US$51.09 a barrel. 

Base metal prices were mixed on the London Metal Exchange on Wednesday. Copper and lead rose 0.3-0.4%. Other metals fell by between 0.9-2.2% with zinc down the most. 

The gold futures price rose by US$35.40 or 2.4% to a 6-year high of US$1,519.60 an ounce. The spot gold price was trading near US$1,497 an ounce in late US trade. Iron ore fell by US$5.10 or 5.2% to US$92.80 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent56.2358.94-2.71-4.60-12.46
Oil - West Texas crude52.4651.091.372.68-9.02
Gold Spot $/OZ1,499.001,501.00-2.70-0.187.38
Silver Spot $/OZ17.1017.100.00-0.1213.69
Iron Ore102.00104.70-2.60-2.51-10.85
Thermal Coal Newcastle67.8068.00-0.30-0.44-11.09
APAC Hard Coking Coal FOB157.00157.000.000.00-15.02
Aluminium ($US/t)1,7151,730-15.00-0.85-3.87
Copper Mar-18 ($US/lb)2.592.571.700.66-2.56
Lead ($US/t)2,0082,0026.000.318.18
Nickel ($US/t)14,80214,944-142.00-0.9519.20
Zinc ($US/t)2,2512,302-52.00-2.24-6.36
Tin ($US/t)16,78017,020-240.00-1.41-8.58
Uranium ($US/lb)25.0025.000.000.003.05
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,5896,54642.000.64-2.50
S&P/ASX 2006,5196,47841.000.64-2.29
ASX 24 Futures6,438
Australian Market Report

Wednesday 7 August - close. The Australian share market has closed higher following two days of monster losses after being thrown a lifeline by central bankers across the Tasman. The benchmark S&P/ASX200 closed up 41.4 points, or 0.64 per cent, to 6,519.5 points, while while the broader All Ordinaries was up 42 points, or 0.64 per cent, to 6,588.5 points. The gains came mostly after the Reserve Bank of New Zealand cut interest rates by 50 basis points, which was double what traders had been expecting and led many to assume the Reserve Bank of Australia was more likely to cut rates next month.

Ashanti Headlines

China rare earths group supports counter-measures against U.S. 'bullying'

  • China’s rare earths association said it would support Chinese counter-measures in the escalating trade row with the United States, which it accused on Wednesday of “bullying”.
  • The Association of China Rare Earth Industry issued a statement after a special working meeting on Monday to discuss the “guidance” given by Chinese President Xi Jinping during a visit to a rare earth plant in Jiangxi in May.
  • Xi’s visit stoked fears China would use its dominance over production of rare earths, a group of 17 chemical elements prized for their use in consumer electronics and military equipment, in the escalating trade war, although no restrictions on supplies have so far been announced.
  • U.S. President Donald Trump said last week he would impose further tariffs on another $300 billion of Chinese goods, although a previous lists avoided rare earths, for which the United States relies heavily on China.
  • The Chinese association rarely comments on the trade war and made no mention of export restrictions, but said all attendees at the meeting agreed that U.S. tariffs on Chinese goods were aimed at suppressing China’s development and amounted to unilateralism, protectionism and “trade bullying behavior.”
  • “The cost of tariffs imposed by the United States should be borne by the U.S. market and consumers,” the association said.
  • China customs is due to report its July rare earth export data later today.
  • Greenland Minerals Ltd (GGG.ASX) and Pensana Metals Limited (PM8.ASX) remain our preferred ASX listed rare earth development exposures

Have a question? admin@ashanticapital.com.au

ERA Communications