ASX Small Cap Lunch Wrap: Who’s tapping a strategic reserve we didn’t know we needed today?
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Krispy Kreme says its tapping its “strategic doughnut reserve” and will price a dozen of its Original Glazed® Doughnuts at the US national average for a gallon of regular gasoline on Wednesdays.
On Monday the US national average price was US$4.11 per gallon and usually a dozen doughnuts would cost you over US$10.
The company says it hopes to leave a “sweeter taste in motorists’ mouths” since inflation and high gas prices are forcing families to make tough trade-offs – and everyone loves doughnuts, right?
“We know that despite the high gas prices people have to be out and about anyway,” chief marketing officer Dave Skena says.
“So, for the next several Wednesdays, we hope providing a little doughnut deflation will allow them to share some smiles during a difficult time.”
The ASX 200 is up 42.30 points or 0.57% at midday today to 7,521.30.
European markets mostly fell yesterday ahead of an expected higher open on Wall Street.
“While today sees the Bank of Canada decide on policy, with a rate rise expected, the real event will be earnings from JPMorgan, kicking off the Q1 earnings season in earnest,” IG says.
The European Central Bank is meeting Thursday and investors are awaiting more clarity on plans to curb stimulus measures.
“ECB speakers have turned a little bit more hawkish lately,” said Jeremy Gatto, a multiasset investment manager at Unigestion. “They seem now to be agreeing that inflation might be a concern. It’s difficult to get excited about Europe.”
In the US, the Labor Department reported that the consumer-price index rose 8.5% in March from a year before. That outpaced February’s 7.9% reading and was higher than some economists had forecast.
“Inflation data is now indicating, perhaps, that we’re at peak or near peak,” said Gargi Chaudhuri, the head of iShares Investment Strategy Americas at asset manager BlackRock.
Even so, Fed governor Lael Brainard, who is awaiting Senate confirmation to serve as the central bank’s vice chairwoman, reiterated Tuesday the Fed’s readiness to take an aggressive stance against inflation.
“Inflation is too high,” Ms Brainard said in remarks at a Wall Street Journal summit. “Getting inflation down is going to be our most important task.”
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Gold explorer Megado (ASX:MEG) has acquired a rare earths project in the US.
The North Fork project has walk-up drill targets that have been delineated by historic exploration activities, with MEG set to kick off their own exploration once the acquisition is finalised.
“The incorporation of a high-grade rare earth element project in an extremely receptive mining jurisdiction is an incredible addition to the company’s portfolio,” CEO and MD Michael Gumbley said.
“Importantly, historical exploration, sampling mineralised outcropping veins, indicated extremely high-grade total rare earth oxides in excess of 20%, including significant returns of ‘critical rare earths.’”
And Elmore (ASX:ELE) says commercial production has commenced at the Peko stage 1 magnetite processing plant in the NT.