ASX moves higher results at a moderate level



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Carnarvon Petroleum

RBC Capital Markets has begun coverage of Carnarvon Petroleum with a "better performance" recommendation and a target price of 129.7% for a Friday price of 37 ¢. Coastal explorer has two major development projects, and analyst Ben Wilson said the importance of the Dorado oil exploration will increase only with borehole assessment and subsequent reconnaissance program. He noted that the company had a cash balance of $ 50 million at the end of September, claiming that the explorer had sufficient funds in 2019 to cover the two-valued DOrado valuation program. "Carnarvon represents an exceptional investment opportunity in the context of ASX, playing conventional explorers … and a strong inventory of prospects for prospects," said Mr Wilson. RBC provided the company with a target price of CZK 85.

What moved the market

Volatility

The VIX volatility index released in mid-term US elections as well as other measurable measures after the outcome was broadly in line with expectations. The VIX index fell below medium term futures, while the Cboe Volatility Index fell nearly 16 percent to the lowest level in nearly a month. Global markets seemed to be backed by a decline in volatility. Wall Street was strong on Wednesday and all three benchmark indices rose. Dow Jones Industrial Average and S & P 500 jumped 2.1 percent, while Nasdaq Composite grew by 2.6 percent.

Brent crude

Brent oil prices were largely stable on Thursday, as OPEC has shown that it is considering production constraints, which are a necessary way to prevent the global surplus supply from returning. While this report shifted the price of oil above, the surging US oil output for the first time in two and a half months has boosted prices below USD 72 per barrel. Crude output reached a record 11.6 million barrels last week, according to Energy Information Administration data released on Wednesday. US oil output grew by 22.2% year-on-year and thus became the world's largest oil producer.

New Zealand Dollar

The New Zealand Reserve Bank kept its interest rate at 1.75 percent on Thursday, but slightly more hawks because it raised slightly inflation forecasts. It raised the inflation forecast in 2021 from 2% in August to 2.2% and mentioned that inflation has upside risks. It still suggested that rates would not increase until the end of 2020, while no longer saying that the next step would be up or down. The New Zealand dollar, which reached more than 5% in a month, did not mean much more.

Gold miners

The drop in volatility has hurt goldsmiths in the market Thursday. The local goldsmiths had a strong performance in October, as the market was repaired but slightly weaker on the back of the market. Reducing volatility indices around the world has made demand in the shelter easier and investors have left local gold. Saracen Mineral Holdings declined by 3.9 percent to $ 2.46, St Barbara closed 4.2 percent to $ 4.12, Regis Resources dropped 3 percent to $ 4.23, and North Star Resources dropped by 3.5 percent to $ 8.47. Larger Newcrest Mining and Evolution Mining fell 1% to $ 20.81 and 1.9% to $ 3.06.

William is a UTS graduate for journalism and has worked at the Sydney Morning Herald. Today it covers AFR markets and closely monitors the IPO.


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