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28 October 2019 06:56 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,95826,806153.000.570.51
S&P 5003,0233,01012.000.412.05
NASDAQ8,2438,18657.000.703.82
FTSE 100 Index7,3247,328-4.00-0.05-1.37
DAX 3012,89512,87222.000.174.15
CAC 40 Index5,7225,68438.000.671.45
Nikkei 225 (Japan)22,80022,75149.000.224.21
HKSE26,66726,798-131.00-0.492.75
SSE Composite Index2,9552,94114.000.480.78
S&P/TSX Composite Index16,40416,36935.000.21-1.74
NZ 5010,78910,832-43.00-0.40-0.44
US Volatility (Vix)13
Overseas Market Report

US sharemarkets were firmer on Friday. Signs of progress on USChina trade talks cheered investors. Shares in Intel rose 8.1% after a strong quarterly result. But shares in Amazon fell 1.1% but was well off session lows after issuing revenue and profit forecasts below estimates. The Dow Jones rose by 152 points or 0.6%. The S&P500 index rose by 0.4% with the Nasdaq up by 57 points or 0.7%. Over the week the Dow rose 0.7%, the S&P 500 index rose 1.2% and the Nasdaq rose 1.9%.

Global oil prices were firmer by up to 0.8% on Friday. There was optimism on a US-China trade deal. And the number of oil rigs in operation in the US fell by 17 to 696 in the past week. Brent crude rose by US35 cents or 0.6% to US$62.02 a barrel. And the US Nymex price rose by US43 cents or 0.8% to US$56.66 a barrel. Over the week Brent rose by 4.4% with Nymex up 5.4%.

Base metal prices were mixed on the London Metal Exchange on Friday. Tin, nickel and lead fell by up to 0.6%. Other metals rose by up to 0.9%. Over the week nickel rose 2.9% and zinc rose 2.7% but tin lost 1.6% and aluminium lost 0.7%.

The gold futures price rose by US60 cents to US$1,505.30 an ounce. Spot gold was trading near US$1,504 an ounce in late US trade. Over the week gold rose US$11.20 or 0.7%. Iron ore rose by US60 cents or 0.7% to US$87.65 a tonne. Over the week iron ore rose US$1.95 or 2.3%.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent62.0862.020.060.100.27
Oil - West Texas crude56.7556.660.090.161.50
Gold Spot $/OZ1,503.001,505.00-1.40-0.100.40
Silver Spot $/OZ18.0018.000.00-0.102.67
Iron Ore85.8085.500.300.37-7.98
Thermal Coal Newcastle67.2067.50-0.30-0.522.68
APAC Hard Coking Coal FOB144.50147.00-2.50-1.706.25
Aluminium ($US/t)1,7221,7166.000.35-0.42
Copper Mar-18 ($US/lb)2.692.680.900.363.37
Lead ($US/t)2,2382,246-7.00-0.316.66
Nickel ($US/t)16,78016,847-67.00-0.40-3.98
Zinc ($US/t)2,5542,53222.000.8610.61
Tin ($US/t)16,63916,740-101.00-0.600.75
Uranium ($US/lb)24.0024.000.00-0.82-6.23
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,8416,79744.000.650.25
S&P/ASX 2006,7396,69446.000.680.34
ASX 24 Futures6,739
Australian Market Report

Friday 25 October 2019 - close. Boosted by gains in offshore markets, a raft of good earnings results in the United States and a lower Australian dollar, the local sharemarket powered higher to end the week, led by strong gains in healthcare, retail, gold and real estate stocks. The benchmark S&P/ASX 200 Index rose 0.7 per cent, or 45.6 points, to 6739.2, closing at the highest level since the start of October.

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)

Quarterly highlights:
West Musgrave Project
  • Pre-Feasibility Study extended to include detailed evaluation of numerous potential value-add opportunities
  • Further evaluation of opportunities to include:
    • New comminution and float cell technologies
    • Remote Operations Centre and workforce
    • Renewable power opportunities and potential partners
    • Updated Resource and Reserve to inform mine design and schedule
  • PFS delivery in early 2020
Mount Squires Gold Project (CZI 100%)
  • Excellent first-pass results from RC drilling at the Handpump Prospect
  • Confirms a regional-scale, greenfield gold opportunity
  • Follow-up programs underway

Corporate

  • The Company remains well funded with A$7.3m in cash and reserves at the end of the Quarter. 
  • During the September quarter, Cassini executives visited key shareholder Guangzhou Tinci Materials Technology Co. Ltd (002709.SHE, market capitalisation of ~A$2.2b) in Guangzhou and Jiujiang, in Jiangxi Province China. Tinci is one of the largest battery electrolyte producers in China, with ~2,500 employees in multiple facilities across the country. They have strong customer relationships with well known lithium-ion battery manufacturers such as CATL, LG and Aviation Industry Corp of China (AVIC). Tinci have recently acquired a nickel sulphate manufacturing plant in Jiujiang, which they are currently refurbishing and expanding with the goal of the facility being operational in early 2021. It was an opportunity to view Tinci’s impressive operations and also to experience first hand the significant progress China has made in the adoption of electric vehicles (EV’s).

A link to the full announcement can be found here

The Electric Aviation Pioneer Who Aims To Crack The Pilot Shortage (Forbes)

  • It may be decades before airlines are powered by electricity rather than fossil fuels — batteries are still too heavy and drain too soon. But George Bye thinks he’s found a market that electric aircraft can thrive in today: flight training, where lessons generally include little more than an hour in the sky. On the arid plains outside Denver, his Bye Aerospace is flight-testing an airplane built specifically for that purpose, the two-seat eFlyer 2.
  • The battery-electric plane should operate at a fifth the cost of conventional training aircraft, Bye says, with the electricity for an hour’s flight clocking in at roughly $3 in his home state of Colorado, compared to a $50 fuel bill for the Cessna 172 Skyhawk. That, the former U.S. Air Force pilot says, will make flight training more affordable for less well-to-do students—just in time for an upswell in pilots that need training over the next 20 years. “All of us who were military pilots or commercial pilots trained in the ‘60s, ‘70s and ‘80s, we're all retiring,” he says. “Where are the airline pilots going to come from to replace us?”
  • The answer to that is being worked out now by airlines, aircraft makers and flight schools ranging from university programs to large companies like CAE to mom-and-pop airport operations.
  • With a mandatory retirement age of 65, 49% of U.S. airline pilots will age out of the cockpit in the next 15 years, according to FAA data. Meanwhile, a rise in travel worldwide—particularly in China and other fast-growing Asian countries—is leading to rapid expansion by airlines. Put the two trends together and Boeing projects that air carriers will need to hire 804,000 new pilots over the next 20 years.
  • A link to the full article can be found here

Have a question? admin@ashanticapital.com.au

ERA Communications