CAPITAL MARKETS

Markets lack direction

Markets seemed to lack direction as US Federal Reserve chairman Jerome Powell’s testimony to Congress reiterated his “patient” approach and UK prime minister Theresa May promised a vote to delay Brexit if her proposed deal failed.

Staff reporter
 Newmont’s Ahafo operations in Ghana

Newmont’s Ahafo operations in Ghana

US and European market futures were pointing lower but Toronto's was higher.

Mining equities on the S&P/ASX200 were collectively holding onto positive territory in late afternoon trade, despite an overall plus-1% drop by the gold sector.

Australian gold major Newcrest Mining (ASX: NCM) was down 2% at the time of writing.

Gold was a couple of dollars lower than this point yesterday on the spot market, below US$1,328 an ounce.

Base metal futures were mixed in Asian trade this afternoon.

The small number of metal and mining stocks on the S&P500 closed down 1.48% yesterday, weighed down by Newmont Mining's (NYSE: NEM) drop of 3.19%.

Its share price has slid since Barrick Gold made a hostile bid for the company, with Newmont indicating it prefers its planned acquisition of Goldcorp.

However its shares remain slightly up year-to-date.

Barrick closed a little lower, down C1c or 0.06% in Toronto.

Metals and mining stocks had closed 0.22% lower in London and 0.44% lower in Toronto yesterday.

Dual-listed OceanaGold (TSX: OGC) finished Tuesday down 3.78%, losing the previous day's gains from announcing a high-grade resource at its Waihi project in New Zealand.

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