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24 September 2019 06:51 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,95026,93515.000.065.15
S&P 5002,9922,9920.00-0.015.08
NASDAQ8,1128,118-5.00-0.064.65
FTSE 100 Index7,3267,345-19.00-0.263.26
DAX 3012,3420-126.00-1.016.29
CAC 40 Index5,6315,691-60.00-1.055.70
Nikkei 225 (Japan)22,07922,04435.000.166.61
HKSE26,22226,436-213.00-0.810.16
SSE Composite Index2,9773,006-29.00-0.982.75
S&P/TSX Composite Index16,86716,900-32.00-0.195.17
NZ 5010,87810,8734.000.042.40
US Volatility (Vix)15
Overseas Market Report

US sharemarkets were mixed on Monday as investors worried about the global economy. But Apple shares rose by 0.5% after US trade regulators approved 10 out of 15 requests for tariff exemptions by the iPhone maker. American Express shares rose by 1.2% after the company authorised a buyback program of up to 120 million shares and hiked its dividend by 10%. The Dow Jones rose by 14 points or 0.1%. The S&P500 index fell by 0.01% and the Nasdaq fell by 5 points or 0.1%. 

Global oil prices lifted on Monday as traders weighed conflicting reports on how quickly Saudi Arabia will be able to restore lost production from drone attacks. The Brent crude price rose by US49 cents or 0.8% to US$64.77 a barrel. The US Nymex price rose by US55 cents or 0.9% to US$58.64 a barrel. 

Base metal prices were mostly lower on the London Metal Exchange on Monday. Lead (-1.8%), tin (-1.2%) and aluminium (- 0.5%) fell by the most. Zinc lifted by 1.3%. Copper fell by 0.3%.

The gold futures price rose by US$16.40 or 1.1% to US$1,531.50 an ounce. The spot gold price was trading near US$1,523 an ounce in late US trade. Iron ore rose by US$2.05 or 2.2% to US$93.65 a tonne as China tightened output curbs.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent64.7764.280.490.769.15
Oil - West Texas crude58.2858.64-0.36-0.617.59
Gold Spot $/OZ1,522.001,522.000.100.01-0.30
Silver Spot $/OZ18.6018.600.00-0.086.92
Iron Ore95.8096.60-0.80-0.783.43
Thermal Coal Newcastle65.4065.50-0.10-0.15-0.61
APAC Hard Coking Coal FOB133.00133.000.000.00-15.56
Aluminium ($US/t)1,7651,774-10.00-0.541.18
Copper Mar-18 ($US/lb)2.592.590.400.172.55
Lead ($US/t)2,0712,109-38.00-1.800.06
Nickel ($US/t)17,59517,660-65.00-0.3711.91
Zinc ($US/t)2,3422,31230.001.303.95
Tin ($US/t)16,52416,726-202.00-1.213.89
Uranium ($US/lb)26.0026.000.000.191.78
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,8616,83922.000.323.73
S&P/ASX 2006,7506,73119.000.283.47
ASX 24 Futures6,724
Australian Market Report

Monday 23 September - close. The ASX 200 ended the first session of the week with a gain of 19 points or 0.28%. The early positive momentum for the index waned somewhat and the Index ended off the best levels of the session when it was ahead by 40 points or 0.59%. Despite ebbing from session highs, the local market stood out as one of the most improved against a weaker trend for regional markets, led by the Shanghai Composite Index which was down 1.3% at the time of writing. The tone of regional trade was informed by the latest developments in the US-China trade dispute and the ensuing losses on Wall Street at the weekend. US share markets closed lower after President Trump said negotiators were "making a lot of progress" in relation to discussions, although "a partial deal" was not an option. The latest point stuck in the craw of the markets in addition to news that a Chinese delegation had cancelled planned visits to US farms, which was seen a proxy for relations between the two countries.

Ashanti Headlines

Cassini Resources Ltd (CZI.ASX, 8.8cps, m.cap A$36.6m with 415.5m SOI, Cash cA$8.1m, Base Metals Explorer)

  • Cassini has announced the first three RC drill holes at its 100% owned Mount Squires Project in the Musgrave Province of WA which returned significant mineralisation at the Handpump Gold Prospect.
  • The project is an early stage exploration project, prospective for gold, located adjacent to the western border of the Company's West Musgrave JV Project with OZ Minerals Ltd.
  • Drilling at the Handpump Prospect comprised of 10 holes for 1,134m of RC and was designed to confirm mineralisation controls and extensions to previous drill intercepts which include a best result of 15m @ 2.30 g/t Au from 31m. 
  • Significant intercepts include:
    • 20m @ 1.27g/t Au from 23m;
    • Including 7m @ 2.54 g/t Au from 23m; and
    • A peak result of 1m @ 4.98g/t Au from 26m in MSC0003
  • Combining the historical drill results and surface rock chips samples indicates a potential mineralised strike of at least 600m which remains open down plunge.
  • Results for the remaining 7 holes are due over the next couple of weeks. The airborne magnetic survey has been completed and the data is now being processed.
  • Please contact your adviser or the desk on +61 8 6319 7806 should you wish to discuss further.

ELECTRIC AIRCRAFT: Flightpath of the Future of Air Travel

  • In the transportation world, a tipping point in the acceleration of the ‘Car of the Future’ has been reached where we are now moving decidedly in the areas of electric and autonomous vehicles. All-electric technology is now expanding into trucking with production and sales of new electric models set to begin next year. But in the area of civil aerospace, although there have been advancements in systems, materials, and fuel efficiency, aircraft built today look and operate much like those built 60 years ago.
  • Change is coming. Electric power is already being used in several nonpropulsive systems on an aircraft and technology has recently advanced to the point where electric engines are becoming a viable alternative to jet turbofan engines. One major driver is because air travel is responsible for ~2% of manmade CO2 emissions and with air traffic forecast to grow at 4-5% for the next 10+ years, electric engines could reduce carbon emissions for the industry by 50%. Equally important, electric engines save on operating costs as they have less moving parts than jet engines and therefore require less maintenance, are more reliable, and are quieter to operate.
  • Like many potential disruptive changes, we expect electric aircraft to initially target niche markets, such as flight training, urban mobility, and general aviation. We believe the market for electric aircraft may extend to regional routes (up to 1,000 miles), such as London to Rome or New York to Chicago, which make up ~60% of the short haul flights and could therefore pose a threat to established players in that space.
  • Of course, there are some key limiting factors to electric aircraft implementation — most importantly, current battery technology isn’t where it needs to be in terms of energy density and charge times to support full implementation for larger planes and longer distances. Public perception and safety is also a headwind, as running out of charge in an electric vehicle on the highway is a lot different from running out of charge in an electric aircraft at 10,000 feet. But progress is being made, and we expect advances in battery technology to drive accelerated uptake of electric aircraft while regulators are already looking at ways to make the new technologies safe.
  • Bye Aerospace has developed the eFlyer 2 - an entirely new category, an electric-powered aircraft, pioneering a new design to be an ideal Flight Trainer with compelling economic and environmental benefits. Powered by a Rolls Royce electric-propulsion system, with operating costs just one sixth of a comparable Cessna 172, it is to be certified under the FAA’s newly revised ‘FAR Part 23’ regulation. This electric aircraft will help address the largest issues in the airline industry: The low number of new pilots successfully completing airline flight training cannot keep pace with the airlines’ commercial-pilot demand. Flight training costs are expensive, and the legacy aircraft training fleet is 50+ years old. CO2 emissions and aircraft noise are major environmental concerns, that fortunately, now along with these other concerns can be effectively eliminated with the eFlyer 2. Using innovative electric technology, the eFlyer 2 offers the promise of disruptively low operation costs. This affordability aspect alone helps answer the #1 objection and leading cause of high student pilot drop-out rates.

Have a question? admin@ashanticapital.com.au

ERA Communications