ASX Small Cap Lunch Wrap: Who’s too scared to even go to the loo today?
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Looks like the bathroom is not the place to shelter during a lightning storm.
Firefighters with the Okmulgee Fire Department in Oaklahoma were called to the scene of an incident at an apartment building where a bolt of lightning travelled through the exhaust vent and shattered a toilet.
No one was injured, but the toilet was severely damaged – and apparently this type of explosion isn’t entirely unheard of.
In 2019, lightning struck near a Florida couple’s septic tank, ignited the gases within, and caused one of their toilets to explode.
Note to self: when authorities say stay away from water during lightning storms, they mean all types of water.
— NDTV (@ndtv) May 9, 2022
The ASX 200 is also down the toilet again, dropping 126.20 points off at the pool (1.77%) at midday today to 6,994.50.
London’s FTSE 100 ended down 2.3% on Monday as caution ahead of US inflation data due on Wednesday rose. And China’s weak trade numbers also dampened the index.
“The stubborn pursuit by Chinese authorities of a zero-Covid-19 policy is raising concerns that it will have a chilling effect on the Chinese economy in the months ahead,” Michael Hewson, an analyst at CMC Markets, says in a note.
Plus, the prospect of a large interest-rate hike by the US Federal Reserve as well as the continuation of the war in Ukraine also piled the pressure on markets.
“Talk of recession is rife as markets really begin to price in a series of interest-rate rises,” says AJ Bell’s Danni Hewson. “If anyone was hoping a new week would bring a marked change in sentiment they were in for some serious disappointment,” she says in a note.
Few believe a recession is imminent. The US labour market has continued to add jobs at a rapid clip. Wages are climbing, and the unemployment rate remains near a 50-year low.
But economists say there is a growing probability of a slowdown in the coming year, with those surveyed by The Wall Street Journal estimating a 28% probability of a recession sometime in the next 12 months — up from 18% in January.
The outlook for the global economy also is looking increasingly murky, investors say. Supply chains already were snarled heading into this year.
Later this week, investors will get another read on inflation when the Bureau of Labor Statistics releases its consumer-price index. Economists are expecting data to show inflation fell from March’s level, which marked a four-decade high.
In Australia, the NAB business survey is released with retail trade, weekly consumer confidence and the CBA Household Spending Intentions report.
Here are the best performing ASX small cap stocks for May 10 [intraday]:
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Carbon fibre wheel manufacturer Carbon Revolution (ASX:CBR) nabbed a $12m Commonwealth Modern Manufacturing Initiative Grant for its Mega-line project – which is expected to increase the company’s capacity to supply its carbon fibre wheels to the rapidly growing global EV market by 75,000 wheels to a total of 155,000 wheels per annum.
“We are proud to be generating opportunities for our skilled workforce in Geelong and working with local partners on delivering our Mega-line,” CEO Jake Dingle said.
“We thank the Commonwealth Government for their support of Australian advanced manufacturing.”