ASX Small Cap Lunch Wrap: Who got served today?
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For a second, it looked like Novak Djokovic had somehow nabbed a medical exemption to compete in the Australian Open — before his visa was cancelled on arrival in Melbourne.
Looks like he failed to provide appropriate evidence of his visa and he’s going to be deported.
Melbournians who’ve suffered extended lockdowns and restrictions have little sympathy for the player, with Tennis Australia’s decision to let Djokovic play met with widespread criticism.
Novak Djokovic supporters take to the streets of Melbourne. pic.twitter.com/7lAXrLaVsI
— Titus O’Reily (@TitusOReily) January 5, 2022
Serbia’s president Aleksandar Vučić has vowed – on Instagram – to use all diplomatic avenues available to help the player.
But even ScoMo tweeted that ‘rules are rules, bro’.
Mr Djokovic’s visa has been cancelled. Rules are rules, especially when it comes to our borders. No one is above these rules. Our strong border policies have been critical to Australia having one of the lowest death rates in the world from COVID, we are continuing to be vigilant.
— Scott Morrison (@ScottMorrisonMP) January 5, 2022
The ASX 200 is down 90.10 points, or 1.19%, at midday today to 7,475.70.
According to Morningstar Chinese stocks fell, weighed down by a further weakening of electric vehicle-related sectors. EV makers and suppliers extended losses following a cut in the government’s EV subsidy for this year.
In Europe, stocks gained amid rising hopes about the potentially limited effect of the Omicron coronavirus variant.
US stocks fell as investors digested minutes from the Federal Reserves recent policy meeting for clues about plans to wean markets off pandemic-era stimulus measures.
“We believe the Fed is likely to raise interest rates quicker and potentially shrinking their balance sheet sooner than many expect as they signal fighting inflation is more important than protecting against a drop in economic activity,” wrote Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance, in a Wednesday note.
“What is harder to forecast is to what level of market selloff they are willing to tolerate before changing course.”
In 2022, investors are bracing themselves for volatility. Easing supply chain snarls, potential interest rate increases and slowing growth in corporate earnings are going to be closely watched.
Adding to the murky outlook: a mixed economic recovery, which is making it harder for investors to consider whether to readjust portfolios more into value over growth stocks.
At the same time, ultra-low yields on government bonds are fuelling the appetite for risky assets.
Here are the best performing ASX small cap stocks for January 6 [intraday]:
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Constellation Tech (ASX:CT1) also rose 33% on no news, followed by Larvotto Resources (ASX:LRV) who were up 29% off the back of plans to test lithium and base metal targets in exploration of its Eyre project in the Norseman region of WA.
“Geology and geophysics tell us the host rocks for the Liontown lithium resource extend into our ground and we have a robust lithium soil anomaly generated by Anglo Gold (Anglo) and confirmed by us, that is coincident with the extension of the Liontown host rocks into our project area,” MD Ron Heeks said.
“Around Mt Norcott and within the Jimberlana Dyke we have a copper soil anomaly generated by WMC with a single drill hole in the 1960’s and confirmed by Newmont in the 70’s that has never been followed up.
“The geochemistry program will lead to future geophysics and drilling to refine both of these anomalies.”