Date: Mar 27, 2019

MiFID II exempt information – see dsclaimer below 

Galantas Gold (LON:GAL) – Building up production at the Omagh mine

SolGold* (LON:SOLG) – Project and corporate update

Dow Jones Industrials+0.06%at25,517
Nikkei 225+2.15%at21,428
HK Hang Seng+0.05%at28,536
Shanghai Composite-1.51%at2,997
FTSE 350 Mining+0.47%at19,399
AIM Basic Resources+0.52%at2,163

Economics

US – US equities closed marginally lower on Monday as investors remained wary of the economic growth outlook.

  • 10y Treasury yields edged up this morning after shedding 5bp yesterday and 17.5bp in total since the US Fed last week dropped projections for increasing rates this year and announced the end of its balance sheet reduction.
  • Softer growth outlook saw the 10y yield falling below the 3m bills rate for the first time since 2007 on Friday, one of the indicators that signals a risk of recession. The spread remains negative (c.3bp).
  • Charles Evans, a voting FOMC member, argued yesterday that it is understandable that markets have been nervous over the flattening of the yield curve but highlighted that he remain confident growth is to recover from weak Q1/19 and average around 2% for the year.
  • Commenting on the monetary policy, Evans said it was a good time for the US Fed to pause and adopt a cautious stance, adding he did not expect any interest rate hikes until H2/20.

Germany – Business confidence unexpectedly improved this month following six consecutive drops offering some relief from the latest series of weak economic data.

  • The economy has narrowly avoided a recession last year as the export-oriented nation has been battling with headwinds in the form of US/China trade disputes and the prospects of a no deal Brexit.
  • The Ifo economic institute said its business climate index increased to 99.6 from an upwardly revised 98.7 in the previous month; this beat a consensus forecast for a reading of 98.5.

UK – British Parliament takes control of Brexit timetable and potential options following a 329 to 302 vote including three ministers supporting the motion.

  • The PM abandoned her plans to hold a third vote on her deal amid resistance from Conservative Eurosceptics and the Democratic Unionist Party.
  • A series of so-called indicative votes are to follow tomorrow designed to test the will of Parliament to see what commands a majority with options including ‘softer Brexit’, a customs union and another referendum.
  • PM noted she was ‘sceptical’ about the process and she would not commit the government to abiding by the result saying that “the votes could lead to an outcome that is un-negotiable with the EU, BBC reports.
  • The European Commission said the uncertainty over the plan of action makes it “increasingly likely” the UK will leave the EU without a deal in less than three weeks time as the bloc is getting ready for a hard Brexit.
  • The Commission highlighted that it had completed a no-deal planning “as it is increasingly likely that the UK will leave the EU without a deal on 12 April”.

To read full article please click here