CAPITAL MARKETS

Optimism and tensions tilt markets

North American and European markets closed higher yesterday on further economic optimism, while Australasian markets finished mixed as Hong Kong tensions and the death toll from COVID-19 escalate.

Staff reporter
 The Gahcho Kué mine in Canada’s Northwest Territories, a De Beers/Mountain Province Diamonds JV

The Gahcho Kué mine in Canada’s Northwest Territories, a De Beers/Mountain Province Diamonds JV

Futures indicate a similar result today.

The World Health Organisation said there were more than 99,000 new cases reported yesterday, taking the global tally to almost 5.5 million and there had been 349,190 deaths.

Base metals closed mainly lower in London yesterday as data out of China indicated its slow recovery was continuing.

"However, profits at state-owned enterprises dropped 46% in the first four months of the year, suggesting more supportive policies are necessary to support the country's behemoths," Anna Stablum said from Marex Specton's LME desk (Singapore).

Mountain Province Diamonds (TSX: MPVD) lost more of its sparkle, touching a one-year low of C25c intraday in Toronto.

De Beers, its 51% partner at the Gahcho Kué mine in Canada's Northwest Territories, said yesterday COVID-19 testing had begun at the remote operation and the Snap Lake site as a preventative measure.

Mountain Province president and CEO Stuart Brown said earlier this month the company would provide an updated 2020 production outlook in June.

He said the rapid spread of the global pandemic toward the end of the March quarter had impacted its ability to operate normally and had an impact on production capabilities.

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