U.S. equity markets remain fragile in July 12-16 trading week

The U.S. Congress may have passed a landmark reform bill to overhaul the country’s financial regulatory system during the July 12-16 trading week, but President Barack Obama still faces a minefield of problems in his battle to get the economy back on track including a relentless unemployment rate of 9.5% and souring consumer sentiment. Us equities remain fragile with the Dow Jones Industrial Average losing 100.13 points or 0.98% to close at 10,097.90, and the S&P 500 index falling 13.08 points or 1.2% to finish at 1,064.88.

Potash Corporation of Saskatchewan, Ivanhoe Mines and Cameco Corp. posted the top three value gains. Potash Corp. jumped $3.69 to US$96.59 per share on no news but ahead of second-quarter earnings results due out July 29. Ivanhoe Mines advanced US$2.34 to US$16.34 per share following news that it was starting to flex its muscles with majority shareholder Rio Tinto. On July 13 Ivanhoe said it would terminate restrictions on potential new strategic investors that had been part of a five-year strategic investment agreement it had signed with Rio Tinto, which allows the latter to acquire up to, but no more than, 46.25% of Ivanhoe. The agreement also bars Ivanhoe from issuing more than 5% of its shares to anyone else. Ivanhoe also declared on July 12 that it planned to continue to support a shareholder rights plan unveiled in April. Finally, Cameco gained US$1.15 to US$23.99 per share. In late June the Canadian uranium producer announced it had signed its first long-term supply agreement with a major Chinese nuclear utility. Under the deal, China National Energy Industry Corp. (CNEIC), a subsidiary of China National Nuclear Corp. (CNNC), will receive 23 million pounds of uranium concentrate under a long-term agreement through 2020. CNNC is China’s largest nuclear generator and operates seven reactors with 5,100 megawatts capacity and has ten more reactors under construction.

Entrée Gold was up 31¢ or 16.8% at US$2.15 – still basking in the news July 6 that it received a mining licence covering its Nomkhon Bohr coal discovery in Mongolia’s Gobi Desert.

On the gold front, the Philadelphia Gold and Silver index was down 4.4% to 167.39 points. Junior explorer Elray Resources was one of the few gold companies to end the week in positive territory, recording a 75% jump to 7¢ per share, on no news.