Global markets plunge as Trump uncertainty looms and May flags hard Brexit landing

By Trevor Hoey. Published at Jan 18, 2017, in Features

With every major global overseas market index having fallen overnight, the attention has been to turn to gold when the ASX opens on Wednesday morning.

Adding further lustre to the precious metal will be the fact that it gained circa US$20 per ounce as US markets unravelled.

Negative sentiment across global markets was also reflected in declines in iron ore and base metal prices. The oil price finished relatively flat after a moderate increase prior to US markets going into freefall in the afternoon session.

In the US, the Dow finished down 59 points after being off more than 100 points or 0.5% an hour before the close. The highflying NASDAQ retreated from recent record highs to finish circa 40 points lower or 0.75%.

However, the worst performing index was the FTSE 100 as it plunged more than 100 points, a fall of nearly 1.5%, which came on the back of comments by British Prime Minister Theresa May that clearly pointed to a hard Brexit landing and a commitment to make a decisive break with the European Union.

Early in May’s speech she said, “The British people voted for change and they did so with their eyes open, accepting that the road ahead will be uncertain at times, but believing that it leads towards a brighter future for their children – and their grandchildren too”.

However, the vote in favour of change was marginal and the ramifications of what it more specifically means for trade, overseas investment and jobs appears to have only been realised after the event.

May’s reference to ‘uncertain times’ wouldn’t have been what equity markets were looking for as there are few worse catalysts than uncertainty in terms of undermining investor confidence.

Some of yesterday’s best ASX 200 performances came from the gold sector with Regis Resources, Northern Star and Evolution Group all making good gains.

Other ASX 200 gold stocks that could join the march on Wednesday are Newcrest Mining, Resolute Mining, Saracen Mineral Holdings and St Barbara.

Looking at the broader market it is difficult to see any other positive leads taken from overseas, particularly given that money was being taken off the table in the US despite positive earnings season news.

Once again, it appears to come back to the issue of uncertainty with President-elect Donald Trump, not only being given the keys to the White House at the end of the week, but also being given the liberty of delivering an address which holds the prospect of being inflammatory on the back of fairly firm words from China and Germany in the last few days.

It should be noted that broker projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!