Concerns about the Middle East rather than a rate cut this year emerged as the market’s new paradigm on Tuesday, if you can overlook any other days of emerging markets, oil costs and Treasury yields.
Comments questioning the likelihood of a rate cut by some key members of the Federal Reserve pushed yields higher, as did gold, but the U. S. dollar weakened and Wall Street saw a broad-based decline.
But that eased at the end of the consultation, as fears of emerging tensions in the Middle East following more Israeli attacks and Iranian threats outweighed growing concerns about a tightening of bond yields.
The yield on the 10 U. S. Treasuries rose to close at around 4. 35%, just over three fundamental issues (a jump from Monday’s 13-point rebound).
Surprisingly, the yield on the 10-year note fell at the start of Asian trading. The US Dollar Index also retreated as the Australian dollar rallied above the 65-cent US dollar level.
Some investors have noted signs of safe haven by buying U. S. dollar assets, such as bonds, as unrest in Israel, Iran, Syria and Gaza continues to worsen.
This surpassed a safe “reality” expressed through two senior members of the Federal Reserve. First, Cleveland Federal Reserve President Loretta Mester said she still expects interest rate cuts this year, but ruled out the next caucus in May.
Mester also believes that the long-term federal budget rate will be higher than long-held expectations of 2. 5%. Instead, he sees the so-called unbiased rate or “r*” at 3% (as we noted last week).
And San Francisco Federal Reserve President Mary Daly said three cuts this year constitute a “very dovish base,” though she stressed that nothing is guaranteed.
Rising bond yields have had no effect on gold – or oil – as renewed fears about the Middle East have proven too strong.
The June Comex contract stood at about $2,970. 10 an ounce around 7:30 a. m. Sydney time on Wednesday, up about 1. 8% on the day after hitting an all-time high of $2,300 an ounce in normal trading.
The first month stood at $2,276. 40 per ounce, up nearly $40 per ounce on the day and $46 per ounce from the Thursday before the long Easter holiday.
Analysts said safe haven will be a priority on Monday and Tuesday as geopolitical tensions in the Middle East intensified. Technical buying is also seen in any of the valuable metals amid bullish charts.
Silver on Comex rose more than 4% in May to $26. 20 an ounce
Crude oil rose sharply on tensions in the Middle East, with West Texas Intermediate (WTI) crude hitting a more than five-month high as sources remain scarce.
WTI crude for May delivery closed up $1. 44 at $85. 14 a barrel, the overdue price since October, while June Brent crude, the global benchmark, rose $1. 46 to $88. 88.
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Increases across all areas of Deep Leads resources: quality, tonnage and target area ABx Group has reported a 30% increase in its Mineral Resource Estimate (MRE) at the Deep Leads Ionic Adsorption Clay (IAC) rare earth deposit in northern Tasmania. The accumulation in MRE comes from 36 extension wells analyzed, representing a significant northward extension for the existing Deep Leads prospect.
Lake Resources (LKE. ASX) – LKE has signed two non-binding memorandums of understanding within 10 days. Ford Company (Ford) has signed a memorandum of understanding for about 25,000 t/year and last week, Hanwa, a Japanese commodity trading company, signed a memorandum of understanding for up to 25,000 t/year. Subject to execution, this is a feat as Ford and Hanwa are in a position to engage in longer-term strategic partnerships with LKE. Commercial negotiations are still ongoing, but they should, i. e. if Ford and Hanwa inject new capital into LKE, it will further reduce the risk of the financing of the assignment and thus ensure that LKE and Kachi are fully funded.
Two recent severity studies have particularly exceeded expectations and revealed the possibility of expanding the existing MRE at Throssell Lake, as well as a significant expansion opportunity at Yeo Lake. This reinforces the prospect of a multi-decade-long Tier 1 SOP production facility around Throssell Lake.
TMG is currently completing paints for the planned PFS in early 2023, adding the start of drilling in the third quarter of 2022, evaporation testing and permitting activities. The effects of these systems will affect the SFP and any long-term resource improvements.
SOP reference prices have risen to around 940 USD/t due to recent geopolitical developments. The October 2021 scoping study assumed an SOP value of $550/t and contained a sensitivity study showing that every 10% accumulated in value effects at a cumulative $144 million in NPV of the $364 million allocation. The increase of approximately 70% during the scoping study implies an allocation NPV of approximately $1. 4 billion.
Despite the drop in oil and fuel prices, which fell by 5. 4% and 19. 7% respectively in August, Calima managed to record an improvement in its key industry indicators.
WT Financial Group Limited (WTL) is a fast-growing diversified monetary company founded in 2010 and indexed on the Australian Securities Exchange (ASX) in 2015. Their recommendations and product offerings are primarily provided through an organization of independent money advisors who act as legal representatives. . de WTL in connection with its broker organisation business Wealth Today Pty Ltd (Wealth Today) and Sentry Group Pty Ltd (Sentry Group). It has approximately 275 advisers in more than two hundred money advice firms across Australia. It also operates a direct-to-consumer operation under its Spring Financial Group brand.
In May 2021, Corporate Connect analyst Marc Sinatra published a comprehensive study report on ASX-listed biotech company Immutep Ltd (ASX: IMM). He was so inspired by IMM that Corporate Connect felt it was imperative to publish a follow-up report that valued the company. as the market did not see the great prospects of Eftilagimod Alpha (EFTI).
The follow-up report published today. Using comparables, after adding a monetary rebate to its EV estimate and dividing it by the total number of percentages issued, Corporate Connect now puts the fair price of a percentage of Immutep at A$2. 20.