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04 March 2020 06:51 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average25,91726,703-786.00-2.94-8.74
S&P 5003,0033,090-87.00-2.81-7.56
NASDAQ8,6848,952-268.00-2.99-6.35
FTSE 100 Index6,7186,65563.000.95-8.30
DAX 3011,98511,858128.001.08-8.12
CAC 40 Index5,3935,33460.001.12-7.53
Nikkei 225 (Japan)21,08321,344-261.00-1.22-8.67
HKSE26,28526,292-7.00-0.03-1.47
SSE Composite Index2,9932,97122.000.747.53
S&P/TSX Composite Index16,42416,553-130.00-0.78-5.50
NZ 5011,30011,346-46.00-0.41-1.84
US Volatility (Vix)37
Overseas Market Report

US sharemarkets remained volatile on Tuesday as investors took stock of the Fed rate cut and the commitment to action by G7 finance ministers. Homebuilders rose in response to the rate cut. At the close, the Dow Jones index was lower by 786 points or 2.9% after tracking a range of 1378 points. The S&P500 index fell by 2.8% and the Nasdaq was down by 268 points or 3.0%. 

Global oil prices were mixed on Tuesday after the OPEC+ technical panel recommended additional cuts in crude oil production. The OPEC+ nations meet on Thursday. Investors derived some comfort from the US Fed rate cut and comments from G7 finance ministers. Brent crude fell by US4 cents or 0.1% to US$51.86 a barrel. The US Nymex price rose by US43 cents or 0.9% to US$47.18 a barrel. 

Base metal prices were mixed on Tuesday. Zinc, nickel and copper fell by up to 2.7%. Other metals rose by 0.4-0.7%. 

The gold futures price rose by US$49.80 an ounce or 3.1% to US$1,642.10 an ounce. Spot gold was trading near US$1,636 an ounce in late US trade. Iron ore fell by US$1.00 or 1.1% to US$87.85 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent51.7851.90-0.12-0.23-4.90
Oil - West Texas crude47.1846.750.430.92-5.85
Gold Spot $/OZ1,640.001,641.00-1.30-0.085.58
Silver Spot $/OZ16.6017.20-0.60-3.53-5.59
Iron Ore80.1081.90-1.80-2.22-10.30
Thermal Coal Newcastle66.2066.30-0.10-0.23-0.15
APAC Hard Coking Coal FOB156.00160.00-4.00-2.502.63
Aluminium ($US/t)1,7081,7017.000.402.86
Copper ($US/lb)2.582.60-2.20-0.832.89
Lead ($US/t)1,8931,8885.000.263.06
Nickel ($US/t)12,49612,632-136.00-1.08-1.14
Zinc ($US/t)1,9562,010-54.00-2.67-9.25
Tin ($US/t)16,74216,625117.000.703.24
Uranium ($US/lb)25.0025.000.00-0.200.20
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,5126,46150.000.78-7.61
S&P/ASX 2006,4366,39244.000.69-7.38
ASX 24 Futures6,284
Australian Market Report

Tuesday 3 March 2020 - close. The Australian share market has snapped a seven-day losing streak in which it lost over $250 billion in value over fears from the coronavirus epidemic. The S&P/ASX200 index was up around midday as much as 132.8 points, or 2.1 per cent, but the gains moderated after the Reserve Bank of Australia only opted for a 25-basis point rate cut, rather than the double-size 50-point slash some were hoping for. The index finished Tuesday up 44.2 points, or 0.69 per cent, to 6,435.7, while the broader All Ordinaries index gained 50.5 points, or 0.78 per cent, to 6,511.6.

Ashanti Headlines

Emeco Holdings (EHL.ASX, 183cps, m.cap A$673.5m with 368.6m SOI, Cash A$53m, Mining Services)

  • EHL announced that Fitch Ratings upgrade EHL’s long-term issuer default to “B+” from “B”, noting the improvement of the business profile following the recent successful acquisition and integration of Pit N Portal, Force Equipment and Matilda Equipment. 
  • This is a positive read through that Emeco could favourably refinance its debt, especially given recent de-leveraging efforts.

OZ Minerals Limited (OZL.ASX, 905cps, m.cap A$2.93B with 324.2m SOI, Cash $134m, Copper Explorer /Developer)

  • OZL has achieved nameplate milling rate at Carrapateena. 
  • Flotation recovery has exceeded 90% for several shifts and produced concentrate grades have been >40% copper. The underground crusher and conveyor system are also now operating to design expectations. 
  • The plant will continue to be tested and optimised throughout H1 CY2020 and together with the ramp-up in mine production the total throughput and concentrate production is excepted to increase in H2 CY2020. 
  • While this is a relatively routine progress announcement, it may alleviate the continued speculation by the investment community that Carra ramp up is at risk.

Have a question? admin@ashanticapital.com.au

ERA Communications