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17 September 2019 06:51 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average27,07727,220-143.00-0.524.60
S&P 5002,9983,007-9.00-0.313.78
NASDAQ8,1548,177-23.00-0.283.26
FTSE 100 Index7,3217,367-46.00-0.632.87
DAX 3012,3800-88.00-0.717.07
CAC 40 Index5,6025,655-53.00-0.945.69
Nikkei 225 (Japan)21,98821,760229.001.057.69
HKSE27,12527,353-228.00-0.835.40
SSE Composite Index3,0313,0310.00-0.027.33
S&P/TSX Composite Index16,75116,68269.000.413.72
NZ 5010,85810,83226.000.241.90
US Volatility (Vix)15
Overseas Market Report

US sharemarkets fell on Monday as investors feared that a surge in oil prices following an attack in Saudi Arabia could slow global economic growth. Shares of US oil supermajors Chevron (+2.2%) and Exxon Mobil (+1.5%) led gains on the Dow Jones. But American Airlines was down 7.3% - the worst performer on the S&P500. General Motors shares fell 4.2% after the United Auto Workers went on strike for the first time in 12 years. The Dow Jones closed lower by 142 points or 0.5%, the S&P500 index fell by 0.3% and the Nasdaq lost 23 points or 0.3%. 

Global oil prices surged on Monday following the attacks on Saudi Arabia's oil industry on Saturday, knocking out 5.7 million barrels of daily crude production or 50% of the kingdom’s oil output. Saudi Arabian officials said they face "severe" disruptions at the Abqaiq processing plant, which could be offline for months. The Brent crude price rose by US$8.80 or 14.6% - the most since 1988 - to US$69.02 a barrel. And the US Nymex price rose by US$8.05 or 14.7% to US$62.90 a barrel. 

Base metal prices were mostly weaker on the London Metal Exchange on Monday. Nickel (-2.0%) and copper (-1.8%) fell by the most due to weaker-than-expected Chinese industrial data in August and worries about global growth. But tin rose by 4.2%. 

The gold futures price rose by US$12.00 or 0.8% to US$1,511.50 an ounce. The spot gold price was trading near US$1,498 an ounce in late US trade. Iron ore fell by US$1.35 or 1.4% to US$97.75 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent69.0260.228.8014.6117.70
Oil - West Texas crude61.9662.90-0.94-1.4912.92
Gold Spot $/OZ1,499.001,498.000.600.04-0.95
Silver Spot $/OZ17.8017.900.00-0.014.28
Iron Ore94.9093.901.001.095.01
Thermal Coal Newcastle66.2065.700.500.68-0.23
APAC Hard Coking Coal FOB150.00146.004.002.74-5.06
Aluminium ($US/t)1,7621,777-15.00-0.860.11
Copper Mar-18 ($US/lb)2.622.68-6.00-2.241.00
Lead ($US/t)2,0842,096-11.00-0.542.24
Nickel ($US/t)17,46117,809-348.00-1.957.64
Zinc ($US/t)2,3692,384-15.00-0.615.32
Tin ($US/t)17,15816,470688.004.183.37
Uranium ($US/lb)25.0025.000.001.000.60
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,7826,7775.000.074.57
S&P/ASX 2006,6736,6694.000.064.18
ASX 24 Futures6,661
Australian Market Report

Monday 16 September - close. The Australian share market has finished marginally higher as gains by oil companies and goldminers outweighed declines elsewhere in the wake of a drone attack on two Saudi Arabian oil facilities. The benchmark S&P/ASX200 index closed on Monday up 4.3 points, or 0.06 per cent, to 6,673.5 points, while the broader All Ordinaries finished up 4.9 points, or 0.07 per cent, to 6,782 points.

Ashanti Headlines

AuMake International Ltd (AU8.ASX, 14cps, m.cap A$43.7m with 312.1m SOI, Cash c$9.9m (Consumer Discretionary)

  • Two of Australia's most accomplished investors; Hamish Douglas, CIO at Magellan Asset Management and Andrew Clifford, CIO at Platinum Asset Management recently featured on a panel discussion at Livewire Live 2019 which offered a rare insight into the global investment thematics they anticipate to play out over the next 10 years.
  • Of particular note was their agreeance that over the next 10 years they expect Chinese markets to significantly outperform the US markets.
  • Hamish Douglas is a big fan of the demographics in China. With more than 600m people still living in rural areas, there's still plenty of room for urbanisation. It's not just those moving from rural to cities though; over the next decade, the middle class is set to double, the affluent middle class is set to quadruple, while the affluent class is set to increase by six times. 
  • Both fund managers are making a big rotation into Company's exposed to the Chinese consumer.
  • This is a positive read through for AuMake who provides investors with direct exposure to the Chinese consumer via its network of retail stores and online platforms.  
  • A link to the full panel discussion can be found here


Have a question? admin@ashanticapital.com.au

ERA Communications