U.S. Markets May 30-June 5

Equity markets Stateside were lower over the five trading days May 30-June 5, as sentiment grew that the Federal Reserve Bank was turning to a tight-money philosophy. Fed chairman Ben Bernanke, in a panel discussion at the International Monetary Conference, was openly hawkish about U.S. interest rates, saying that “the (Federal Open Market) Committee will be vigilant to ensure that the recent pattern of elevated monthly core inflation readings is not sustained.”

Market participants took his very obvious implication, and stock prices were hit on June 5, leaving the Standard & Poor’s 500 Index down 14.87 points (1.2% of value) at 1,265.29. The Dow Jones Industrial Average fell even more sharply, losing 2%.

The fallout from Bernanke’s remarks affected the broad market and the base metals, but at the same time the energy sectors and the golds were reacting to tensions in the Persian Gulf. Crude oil prices were higher, with New York light sweet crude at US$72.50 and North Sea at US$70.33, and gold, which had bounced off US$625 per oz. on June 2, was back up to US$641.80 on the next trading day.

That set the stage for rallies in both the coal and gold stocks. In the coals, the best gains were made by Peabody Energy, which rose US$1.98 to US$64.93, and Kerr McGee, which rose US$2.01 to US$110.86; there were other winners, like Foundation Coal Holdings, up US67 to US$46.91, and interlisted Fording Canadian Coal, up US60 to US$35.48.

Among the golds, three big gainers were offshore companies: Minas Buenaventura picked up US$1.44 to close at US$27.50, Lihir Gold added US$1.43 to finish at US$45.50, and Meridian Gold gained US$1.61 to end the trading period at US$32.75.

Newmont Mining tacked on a quarter to close at US$53.30, but the big South Africans were all lower: AngloGold Ashanti fell US81 to US$46.68, Gold Fields US$1.48 to US$21.02, and Harmony Gold Mining US34 to US$14.44.

On the base metal side, Rio Tinto was down US$14.29 to US$217.21, Phelps Dodge backed up US$3.21 to US$86.94, and Anglo American slid US84 to US$19.90.

U.S. greatest percentage change

		Volume(000s)	High	Low	Close	Change
Centrl Minera*	CENMF	55	0.07	0.04	0.07	+75.0
Fischer-W Gld*	FWGO	454	0.09	0.082	0.085	+26.8
Lafayette Mng*	LYMGF	34	0.07	0.06	0.06	+20.0
Peru Copper*	CUP	5403	5.48	3.82	5.29	+19.6
El Capitan Pr*	ECPN	1161	3.15	2.60	3.13	+18.5
Great China M*	GCHA	935	0.205	0.175	0.175	+16.6
Orezone Res*	OZN	273	1.84	1.65	1.79	+15.4
Vista Gold*	VGZ	475	9.19	8.32	9.00	+14.6
Canarc Res*	CRCUF	212	0.64	0.54	0.63	+13.5
Almaden Mnls*	AAU	150	2.59	2.37	2.56	+10.8
World Vent*	WVNTF	313	0.30	0.13	0.195	-32.7
Northw Min Vt*	NWTMF	811	0.619	0.53	0.53	-12.4
CanAlaska Ven*	CVVLF	410	0.65	0.545	0.546	-12.2
Global Gold*	GBGD	54	2.00	1.80	1.80	-10.0
Entree Gold*	EGI	305	1.28	1.05	1.18	-9.2
Madison Minls*	MMRSF	64	0.37	0.33	0.33	-8.3
Aberdene Mine*	ABRM	335	0.54	0.435	0.45	-8.1
Bullion Rvr G*	BLRV	560	0.95	0.86	0.86	-7.5
Trend Mng*	TRDM	363	0.24	0.17	0.185	-7.5
Mountain Prov*	MDM	21	3.55	3.17	3.45	-7.2

U.S. greatest value change

		Volume	Close	Change
Kerr McGee*	KMG	3767900	110.86	+2.01
Peabody Enrgy*	BTU	10821700	64.93	+1.98
Meridian Gold*	MDG	2502700	32.75	+1.61
Westmoreland*	WLB	52700	29.98	+1.47
Buenaventura*	BVN	2103100	27.50	+1.44
Lihir Gold*	LIHRY	213574	45.50	+1.43
Vista Gold*	VGZ	474500	9.00	+1.15
Agnico-Eagle*	AEM	3735600	34.68	+1.06
Seabridge Gld*	SA	305400	10.85	+1.04
MDU Res*	MDU	802000	36.51	+1.02
Rio Tinto*	RTP	1185400	217.21	-14.29
Soc Quim&M Ch*	SQM	193600	100.43	-3.97
Potash C Sask*	POT	1192300	89.99	-3.39
Phelps Dodge*	PD	13339000	86.94	-3.21
ASA (Bermuda)*	ASA	235200	61.27	-2.34
Yanzhou Coal*	YZC	175000	35.79	-2.16
Cleveland-Cli*	CLF	2163500	74.76	-1.73
Southern Peru*	PCU	2750500	86.96	-1.64
Gold Fields*	GFI	5793800	21.02	-1.48
Freeport McMo*	FCX	9819200	56.74	-1.43

U.S. most active issues

		Volume(000s)	High	Low	Close	Change
UNICO Inc*	UNCN	223466	0.002	0.002	0.002	0.00
AuGrid*	AUGC	118411	0.00	1.0E8	0.00	0.00
Newmont Mng*	NEM	16301	53.54	50.14	53.30	+0.25
Coeur d Alene*	CDE	14852	5.14	4.51	5.11	+0.25
Alcoa*	AA	14051	33.11	31.35	32.57	+0.05
Silverado*	SLGLF	14010	0.114	0.10	0.112	+0.011
Phelps Dodge*	PD	13339	88.08	81.60	86.94	-3.21
Goldspring*	GSPG	12691	0.017	0.012	0.012	0.00
CVRD*	RIO	11939	48.15	45.70	47.40	-1.17
Peabody Enrgy*	BTU	10822	65.96	60.16	64.93	+1.98