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13 November 2019 06:51 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average27,69127,6910.000.003.26
S&P 5003,0923,0875.000.164.09
NASDAQ8,4868,46422.000.265.33
FTSE 100 Index7,3657,32937.000.501.63
DAX 3013,284085.000.656.17
CAC 40 Index5,9205,89426.000.444.49
Nikkei 225 (Japan)23,52023,332188.000.817.90
HKSE27,06526,927139.000.522.88
SSE Composite Index2,9152,9105.000.17-1.98
S&P/TSX Composite Index16,90916,88327.000.163.01
NZ 5010,98510,92659.000.540.56
US Volatility (Vix)13
Overseas Market Report

US sharemarkets were mixed on Tuesday. The S&P500 index climbed to a fresh intraday record high during trading. US President Trump said that the US will increase tariffs on China if no trade deal is reached, but later said, "we're close - a significant phase one deal could happen soon" at a speech at the Economic Club of New York. Shares of Walt Disney rose by 1.4% as the company launched its widely awaited streaming service, Disney+. Rockwell Automation shares lifted by 10.5% as the factory automation equipment maker beat fourth-quarter profit expectations. At the close of trade, the Dow Jones finished flat. The S&P500 index rose by over 4 points or 0.2%. The Nasdaq index closed up by almost 22 points or 0.3% to a record high, supported by Facebook shares, up by 2.6%. 

Global oil prices fell on Tuesday. Genscape data, however, showed that US crude inventories at Cushing fell by about 1.2 million barrels in the week to November 8. Brent crude fell by US12 cents or 0.2% to US$62.06 a barrel. And the US Nymex price fell by US6 cents or 0.1% to US$56.80 a barrel. 

Base metal prices were mostly lower on the London Metal Exchange on Tuesday. Lead (-1.6%) and tin (-1.4%) fell the most. Nickel (+0.6%) gained despite Indonesian supply uncertainty. 

The gold futures price fell by US$3.40 or 0.2% to US$1,453.70 an ounce. Spot gold was trading near US$1,458 an ounce in late US trade. Iron ore rose by US$2.55 or 3.3% to US$81.00 a tonne after Vale narrowed its sales guidance.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent61.9962.18-0.19-0.312.45
Oil - West Texas crude56.8056.86-0.06-0.113.84
Gold Spot $/OZ1,457.001,456.000.300.02-2.18
Silver Spot $/OZ16.8016.800.000.00-4.46
Iron Ore81.5082.40-0.90-1.10-13.78
Thermal Coal Newcastle66.5067.00-0.40-0.600.23
APAC Hard Coking Coal FOB140.50140.000.500.36-9.35
Aluminium ($US/t)1,7781,782-4.00-0.203.51
Copper Mar-18 ($US/lb)2.652.66-1.80-0.690.67
Lead ($US/t)2,0582,092-34.00-1.60-5.48
Nickel ($US/t)15,66615,566100.000.64-11.67
Zinc ($US/t)2,5182,542-25.00-0.962.50
Tin ($US/t)16,32916,561-232.00-1.40-0.98
Uranium ($US/lb)25.0025.000.000.00-1.00
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,8576,877-20.00-0.292.01
S&P/ASX 2006,7536,773-20.00-0.292.21
ASX 24 Futures6,765
Australian Market Report

Tuesday 12 November 2019 - close. The Australian share market has given up some of Monday's gains, pulled lower by ex-dividend Westpac and the health care sector. The benchmark S&P/ASX200 index closed on Tuesday, down 19.5 points, or 0.29 per cent, to 6,753.0 points, while the broader All Ordinaries was down 20.0 points, or 0.29 per cent, to 6,857.0 points.

Ashanti Headlines

Funds are starting to turn more bullish on copper (Reuters)

  • There are the very first signs that funds are turning more friendly to Copper. 
  • London Metal Exchange (LME) copper has been locked into a sideways trading pattern since the middle of the year with robust internal dynamics swamped by the broader, negative macro story. Concerns about China’s manufacturing slowdown and the Sino-U.S. trade dispute have manifest themselves in a big fund short position on the CME copper contract since June. 
  • That big short, however, has shrunk a lot over the last couple of weeks as the prospect of some sort of trade deal becomes more credible. 
  • London copper, meanwhile, has seen a flurry of interest in the options market with buyers looking for upside exposure next year. 

  • Money managers held a net short position of 17,838 contracts on the CME copper market as of the most recent Commitments of Traders Report. One month ago, that collective short position was 62,741 contracts and three months ago it was 74,597 contracts, an all-time record in terms of bear positioning. Both parts of the positioning equation have changed dramatically over the last couple of months. Outright shorts have been sharply reduced from the twin peaks of 118,000 contracts in August and September to a current 79,673 contracts. 
  • So too does recent activity in the LME options market. There has been strong buying interest for upside calls, which confer the right to buy, for March next year. Most of the activity has been focused on two specific strike prices at $6,150 and $6,600. Market open interest on each stands at 3,000 lots, equivalent to 75,000 tonnes. 

  • Long positions have rebuilt significantly from 39,870 contracts a month ago to 61,835, the strongest reading since April this year, when LME copper was still trading near year-to-date highs above $6,400 per tonne. 

  • These shifts in positioning on both CME and the LME suggest the financial community is turning more positive on copper. 

  • We remain optimistic on the outlook for copper and our preferred exposure is OZL.ASX and CYM.ASX.

Bye Aerospace’s John Knudsen Joins GAMA Board

  • John Knudsen, General Counsel for Bye Aerospace, has joined the Board of Directors of the General Aviation Manufacturers Association (GAMA).
  • Knudsen has 40 years of aviation legal and corporate experience, with a combination of FAA, private and corporate General Counsel practice. He has been with Bye Aerospace for seven years and manages FAA certification and compliance, corporate legal matters, and insurance and risk management.
  • George E. Bye, CEO of Bye Aerospace, said GAMA is an essential voice for the general aviation manufacturing community and a leader in support of electric propulsion in General Aviation. “John will capably represent Bye Aerospace and all electric propulsion associate members on the GAMA Board of Directors, especially as we continue to proceed forward with FAA certification for our eFlyer 2 aircraft. He is one of the early members on GAMA’s Electric Propulsion and Innovation Committee (EPIC), which supports electric aviation and has  important policy connections to the FAA.” 
  • Prior to joining Bye Aerospace, Knudsen was Co-Founder, President, and General Counsel with Adam Aircraft and a partner with a specialized aviation law firm in Denver. He spent five years as Trial Attorney with the Federal Aviation Administration and Department of Justice in Washington, DC, and received his law degree from University of Puget Sound (Seattle University School of Law). During his career, he served in the U.S. Navy and U.S. Navy Reserves, flying various military aircraft before retiring at the rank of Lt. Commander.


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ERA Communications