Overview: the FTSE 100 is projected to open higher today as the Q3 reports started to come out in the US yesterday with aluminium producer Alcoa unexpectedly posting profits for the quarter, helped by job and cost cuts, also forecasting an 11% increase in global aluminium demand in the second half of the year. The news help the Dow Jones industrial average trim its losses to just 5 points after staying more than 0.5% below the opening level for most of the day.
The S&P 500 rose 0.27% on Wednesday. S&P equity research increased its target for the index, projecting it to reach 1,150, which is a 50 points increase from the previous target, citing continued weakening of the US dollar, expectations of a continued improvement in corporate earnings and rise in economic growth projections as the main reasons behind the decision.
In Hong Kong, the Hang Seng index was 0.39% higher at midday after tacking on 2% on Wednesday, while Nikkei inched up about 0.3%.
Oil prices were at roughly the same levels as yesterday as November Brent Crude held steady at US$68.07/barrel, while US light, sweet crude slid to US$70.36/barrel.
Gold has reached new highs, climbing to US$1,053/oz. Other precious metals also strengthened. Silver rose to US$17.80/oz, while Platinum improved to US$1,336/oz.
Base metals fell into the same pattern with Copper rising to almost US$2.80/pound, while Nickel surged to US$8.55/pound. Zinc was just short of US$0.88/pound.
Morning News Wrap
In the FTSE 100, Cobham (LSE: COB) announced another contract win just a day after securing US$40 million order from the US Army. This time the defence systems manufacturer landed a A$100 million contract extension with Australian air Express to provide air freight services to Eastern Australian ports.
Indian miner Vedanta Resources (LSE: VED) released its production report for the second quarter, saying iron ore production rose 27%, aluminium production was up 13%, while 511 units of power were sold, which was in line with the company’s expectations.
In the AIM, commodity asset development company Mercator Gold (AIM: MCR) released a corporate update, saying it has appointed Deutsche Bank as its depositary bank to issue American Depository Receipts representing the company’s shares to facilitate access to the US market and commissioned SRK Consulting to carry out an NI43-101 compliant preliminary assessment of the Copper Flat Project.
Another junior gold miner Patagonia Gold (AIM: PGD) updated its resource estimate, saying it now had 893,000 ounces of gold equivalent on the Lomada and Cap-Oeste projects in Argentina in 30 months after acquiring the Santa Cruz properties from Barrick Gold.