Victoria’s latest COVID-19 outbreak is getting a tad spicy, with 15 cases now recorded and a nervous wait over the next 24 hours as contact tracers play catch-up.

While domestic weekend travel plans now hang in the balance, the ASX is meandering through the middle of the week with modest gains in morning trade.

US stock futures are pointing slightly higher after a small dip on the S&P500 overnight, while gold has climbed above US$1,900 an ounce for the first time since early January.

The sense of normalcy in markets has been accompanied by easing inflation concerns, although it’s probably fair to say the outlook for US CPI growth is still the main game as 2021 approaches its halfway point.

Next up on that front will be a speech overnight from US Federal Reserve vice chair Randal Quarles, who will give a speech on the US economic outlook (5am Australian eastern time).
 

WINNERS

Here are the best performing ASX small cap stocks at 12pm Wednesday, May 26:

Swipe or scroll to reveal the full table. Click headings to sort.

Investors loved the update from resources minnow Reedy Lagoon Corp (ASX:RLC), which announced a research tie-up with the CSIRO to investigate a method for proving out magnetite iron resources using “petro-physically constrained magnetic modelling”.

The goal is to develop techniques that rely more on geophysics than drill holes, as the company works towards developing its green Burracoppin iron project in WA.

Volatile biotech company Memphasys (ASX:MEM) was also high up on the winner’s list following a capital raise.

The stock is well off from its 2020 highs around 15c, but rose sharply to ~7c this morning after announcing it’s secured another $3m in funding from its two largest shareholders via unsecured convertible notes.
 

LOSERS

Here are the worst performing ASX small cap stocks at 12pm Wednesday, May 26:

Swipe or scroll to reveal the full table. Click headings to sort.