FTSE 100 to edge higher while gold takes a breather - Proactive Investors UK

6.50am: Slow early progress expected

Traders expect the FTSE 100 index to regain some of the losses from recent days in early trade on Tuesday, while gold reached new multi-year highs overnight.

London’s index of blue chips was being predicted by spread-betters to rise roughly 13 points, having dropped almost 19 points to finish at 6,104.88 the day before. 

Overnight, Wall Street’s three main stock indices resumed their upward momentum after a small wobble at the end of last week.

The Dow Jones Industrials Average added 115 points or 0.4% to close at 26,584.77, while the broader S&P 500 exceeded that with a 0.7% rise and the tech-fuelled Nasdaq Composite outdid them both again, rising 1.7%.

Precious metals are again to the fore, noted Jeffrey Halley, a market analyst at Oanda: “The precious metals are merely the brightest envoys though of renewed momentum in the great US dollar rotation trade. The greenback was heavily sold on currency markets overnight as well, with the euro, in particular, running rampant, boosted by impressive German IFO data.”

He noted that the dollar sell-off is being fuelled by the Federal Reserve later meeting this week, with Fed president Jerome Powell expected to be ultra-dovish in his statements after the meeting.

“US nominal bond yields will almost certainly continue tracking lower afterwards, if not before. That will push real bond yields further into negative territory, where they are negative right out to the 30-year tenor.  That is the real reason why the US Dollar sell-off is accelerating," Halley added.

Around the markets:

• The pound is down 0.2% against the dollar at 1.2856
• Gold topped US$1,990 overnight but has edged down 0.1%, while silver surged to almost US$26 before wobbling back to US$24.55
• Brent Crude Oil futures are flat at US$43.41

6.45am: Early Markets - Asia/Australia

Stocks in the Asia Pacific were mixed today as investors continued to monitor developments on the coronavirus (COVID-19) second wave front.

Shares in South Korea led gains in the region with the Kospi up 1.11%. Chinese stocks were also up with the Shanghai composite rising 0.6%.

But in Japan, stocks lagged with the Nikkei 225 dropping 0.13%.

Australia’s S&P/ASX 200 was trading flat after lifting as high as 1.1% with the gold miners particularly strong as the price of the precious metal touched another all-time record high today.

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Proactive Australia news:

Venus Metals Corporation Limited (ASX:VMC) is encouraged by the high-grade gold results returned by joint venture partner Rox Resources Limited (ASX:RXL) from drilling at the Youanmi project within the OYG joint venture area.

Anteris Technologies Ltd (ASX:AVR) released new data at the TAVR Key Opinion Leader Symposium on July 20, 2020, which demonstrates the superiority of the DurAVR™ valve over existing valves.

Australian Strategic Materials (ASM) technology partner ZironTech has produced another run of 22 kilograms of titanium metal alloy at the joint venture (JV) commercial plant in South Korea.

Cellmid Limited (ASX:CDY) has signed, via its wholly-owned US subsidiary Advangen LLC, an agreement with Tru Beauty Concepts Inc for the exclusive distribution of its évolis® Professional anti-ageing hair care products in salons in the northeast of the US.

Musgrave Minerals Ltd (ASX:MGV) has surged after returning bonanza-grade results of up to 3 metres at 884.7 g/t gold from 5 metres at the Starlight discovery of Break of Day within the flagship Cue Gold Project in Western Australia’s Murchison district.

Moho Resources Ltd (ASX:MOH) has completed its commitment of a farm-in and joint venture agreement with IGO Ltd (ASX:IGO) to earn a 70% interest in E70/4688, which is part of the company’s Burracoppin Gold Project in Western Australia.

Alice Queen Ltd (ASX:AQX) has broken ground at Boda East prospect in the prolific Lachlan Fold Belt of NSW with a maiden diamond drilling program of three holes for 2,100 metres.

Bryah Resources Ltd (ASX:BYH) has started a new program of manganese drilling at its Byrah Basin Manganese Joint Venture Project in Western Australia's Mid-West.

Legend Mining Limited (ASX:LEG) has identified a strong offhole conductor at Mawson nickel-copper sulphides discovery on WA’s Fraser Range which managing director Mark Wilson describes as another “exciting development”.

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2020-07-28 05:45:00Z
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