If you need evidence that this week’s planned Trump-Xi hopes are reigniting optimism for a trade deal between the world’s two biggest economies, look no further than Japan.
As Anthony Albanese also addressed the ASEAN forum today in Malaysia, Japan’s Nikkei 225 stock index hit a fresh all time high above 50,000pts for the first time in the benchmark’s history.
Down under, gains weren’t quite so enthusiastic but it’s worth noting as we start heading into November the XJO has clocked a 1 year return of +10%, now that the ASX200 is back above 9,000pts.
In the background of all this, gold has also continued to remain subdued (compared to where it was less than a fortnight ago), it’s my suspicion that the upcoming US-China trade talks have prompted the Chinese central bank(s) to pause gold purchases (which have become preferable for many countries over US Treasuries.)
In last week’s end-of-week wrap for Week 43, I noted that Chinese warrants for gold purchases have soared in recent history, reflecting that China’s central bank is one of the driving forces behind the yellow metal’s historic run of late.
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But let’s turn our attention to Australia specifically. Looking at sectors, Energy, IT and Financials led gainers while Health Care led laggards intraday on Monday.
So what about companies in the green?
Elsight Ltd showed that the defence drawdown mightn’t be around for long after the market liked what it digested in its Monday earnings; shares jumped nearly +12%; EOS and DRO also staged bouncebacks.
AUB Group meanwhile soared +12% too, as it released a pause in trading “pending a further announcement.” Reports from around the traps indicate the company is currently on the radar of a Swedish private equity buyout.
Cazaly Resources meanwhile staged a jump out of the blue despite issuing no new news and gold price movements overnight not offering any inspiration when it comes to identifying a clear catalyst for the increase. Gold assays are due back for the company soon, HotCopper alleges no spurious behaviour.
And so what about the reds?
FELIX Gold meanwhile staged a decline of nearly -30% in the final hour of trades, bringing 1Y returns down to a still-eye-catching +430%.
Lindian Resources meanwhile fell -25% as it told the market that a move from African country Malawi’s government to curb mineral exports wouldn’t hurt its project there, but the market wasn’t too sure.
Finally, Bougainville Copper staged a -16% decline back down to 99cps in the final moments of trade as steep gains clocked last week appeared to pare back on Monday as the US-Aus critmins deal fades into memory.
That’s Market Close for Monday, have a great night and we’ll see you tomorrow.
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