Market Highlights: Heavy selloff on Wall Street despite blockbuster GDP; and 5 ASX small caps to watch

ASX to open higher despite another selloff on Wall Street
US Q3 GDP unexpectedly grew at more than Q2 pace
Expert explains what will impact cryptocurrency prices the most

Aussie shares are poised to rise at the open, despite a selloff on Wall Street overnight. At 8am AEST, the ASX 200 index futures was pointing up by +0.2%.

In New York, the S&P 500 fell by -1.18%, the blue chips Dow Jones index was down by -0.76%, and the tech-heavy Nasdaq plunged by -1.76%.

The S&P 500 is now at the lowest level since May, edging to what analysts say is a “correction territory”.

Stocks have been falling after sluggish quarterly results from Big Tech stocks Alphabet and Meta, and expectations are that Apple’s update later today won’t fare much better.

Amazon dropped 0.5% after the bell despite reporting Q3 revenue and profit that topped analysts’ estimates. Amazon also posted a profit of US94 cents a share, versus analysts’ average forecast of US58 cents.

Ford tumbled -4% after falling short of analysts’ estimates on Q3 earnings. The automaker cited higher costs and union disruptions that led to a 25% wage hike.

Intel jumped 8% in extended trading after predicting a return to sales growth in Q4.

Meanwhile, the US posted an unexpected GDP growth figure of 4.9%, the fastest pace in nearly two years, and more than double the Q2 pace.

However, deVere Group CEO Nigel Green warned the blockbuster figure should not be the focus for investors.

“This data shows what has already happened,” Green explained.

“Investors need to focus on what will happen, if they’re serious about preserving their capital and growing their wealth, because the US economy faces serious headwinds in the months ahead.”

Over the Atlantic, ECB president Christine Lagarde declined to rule out further rate rises despite leaving the Euro zone’s rate unchanged last night.

ECB’s decision aligns it with both the US Fed Reserve and the Bank of England which had paused rate hikes to take stock after the sharpest cycle of increases in decades.

What will move the needle on cryptos?

Bitcoin has been up almost 20% over the past 7 days, but has since consolidated to the current price of US$34,158.

Samer Hasn, a market analyst at XS.com, says the focus has now returned to the main issue that hinders the growth of the cryptocurrency market: the regulatory and legislative concerns.

Hasn believes the conflict in the courts may continue for a long time, and there is no prospect of resolving it at the present time.

“In addition, we witnessed the Chairman of the SEC, Gary Gensler, speaking at the Securities Enforcement Forum in which he continued to criticise the cryptocurrencies, and stressed that the agency should supervise this market…,” said Hasn.

Hasn says the launch of Bitcoin spot funds may boost demand for Bitcoin, and halving will reduce the growth of its supply thus increasing its price.

“Yes, this is true. However, this does not mean in any way that we will see imaginary levels as is being talked about.

“Rather, the fundamentals, structure and clear regulatory environment will determine the future of this market and where it will go, absolutely nothing else, that is what I believe,” Hasn said.

In other markets …

Gold price traded +0.25% higher to US$1,984.48 an ounce.

Oil prices slumped -2.5%, with Brent trading at US$88.27 a barrel.

US bond yields climbed again after the GDP release, with the 10-year yield jumping 10bp.

Iron ore futures was flat at US$118.45 a tonne.

Base metals prices were mixed, with 3-month nickel futures rallying by +0.25%, and copper futures down -0.25%.

The Aussie dollar gained back the US63c handle, trading now at US63.21.

Meanwhile, Bitcoin was down -1.5% in the last 24 hours to US$34,091.

5 ASX small caps to watch today

Midas Minerals (ASX:MM1)
Midas has staked 15 claims totalling 157km2 in Northwest Territories, Canada, known as the Reid-Aylmer Lithium Project, following a regional review. Numerous pegmatite swarms considered prospective for lithium have been identified. Midas has received grant of nine of the new claims, with six recent applications pending.

Tivan (ASX:TVN)
Surface sampling at the Sandover Project in the Northern Territory has identified five new prospects. Copper target with mineralisation of up to 0.12% was identified. Tungsten and bismuth enrichments may suggest potential for Tennant Creek iron oxide copper-gold (IOCG) style deposit. Four lithium targets were identified which show potential for lithium-caesium-tantalum (LCT) style mineralisation.

Alchemy Resources (ASX:ALY)
Mapping has discovered further lithium mineralisation with coarse lithium crystals observed in pegmatite outcrops at Mesquite prospect. Rock chip grades up to 4,500ppm Li20 were discovered in sample. Lithium geochemistry reviewed by an independent consultant has identified numerous additional targets, which will form the basis of exploration planning over the next 12 months at Karonie and Lake Rebecca.

Beamtree Holdings (ASX:BMT)
Annual recurring revenue (ARR) for Q1 FY24 stands at $23.8m, up from $19.1m in the pcp. Revenue for Q1 FY24 Group was +23% higher on pcp. The sales pipeline for the company continues to grow, driven by a strong pipeline of international opportunities in core overseas markets. These sales opportunities will provide a foundation to the long-term goal of achieving ARR of $60m by the end of 2026, says BMT.

Tigers Realm Coal (ASX:TIG)
Tigers says 436kt of coal was mined during the September quarter, a 6% increase compared to June quarter, 309kt of which was delivered to port. Around 691kt of coal were sold during the quarter. And during Q3, TIG loaded 689kt with an average loading rate during the quarter of 11.5kt pwwd. TIG’s fifth 500t barge started loading in July.