ASX Small Cap Lunch Wrap: Who’s launching a new twist on an old classic today?
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Just when you thought budgy smugglers couldn’t get any tastier, Maccas is teaming up with the swimwear brand to release a sassy new range of “nuggie smugglers.”
Hey @BudgySmuggler how ’bout we make some nuggie smugglers?
— McDonald’s Australia (@maccas) January 5, 2022
“The limited-edition range of swimwear is bold, fun and eye-catching, perfect for enjoying the summer season in style,” McDonald’s Australia senior brand manager Liz Whitbread said.
The collection is certainly eye-catching… and includes smugglers, bucket hats and women’s one- or two-piece smuggelettes.
The ASX 200 is up 115.40 points or 1.57% at midday today to 7,473.70.
According to Morningstar with Dow Jones, the pan-European Stoxx Europe 600 index was down 0.9% at 489.59, tracking falls in U.S. stocks late Wednesday after U.S. Federal Reserve minutes pointed to the risk of faster interest-rate rises.
“Fed minutes last night put the cat amongst the pigeons, sparking a selloff on Wall Street that saw tech stocks particularly hard hit once again,” IG analysts say. “We should continue to see the consequences of last night’s minutes play out today, with growth stocks still firmly out of favour.”
In the US, investors are bracing for the possibility of a volatile spell for tech stocks, which have powered the market higher since the early-pandemic slump in 2020. Shares of companies such as Apple and Microsoft have benefited from low interest rates on top of blockbuster earnings helped by the shift to home working.
Rates, however, look set to increase, potentially as soon as March. Although investors say stocks can continue to rise in a period of rising rates that reflect a growing economy, tech shares and momentum stocks such as Tesla are seen as vulnerable.
“We could be in for a rough ride,” said Lars Skovgaard Andersen, investment strategist at Danske Bank Wealth Management. Mr. Andersen expects the volatility to last at least until tech companies begin to report earnings later this month, which he said could encourage investors to buy those stocks back.
Mr. Andersen sees the selloff as a buying opportunity but intends to target the broad market and European banks that stand to benefit when rates rise, rather than U.S. tech.
Here are the best performing ASX small cap stocks for January 7 [intraday]:
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The biggest small cap winner today was a tie between Amani Gold (ASX:ANL) and Javelin Minerals (ASX:JAV) both up 50% on no news.
And Cann Global (ASX:CGB) rose 25% on no news.
Woolworths said it withdrew because it had not been able to “validate the financial returns it requires in line with the group’s capital allocation framework.”
But rival Wesfarmers (ASX:WES) still in the running to acquire the company – but at a lower offer of $1.52 per share.