It was bloodbath on global markets yesterday. US markets were down the most since March 16, European markets declined by the most in over 11 weeks, and the Aussie market has now fallen heavily on the open. Who’s to blame?

It could be the guy who called famous investor Warren Buffett “an idiot” and day trading “so fu&*ing easy”.

Or maybe Jerome Powell wasn’t bullish enough at last night’s US Fed Reserve Meeting.

Chris Beauchamp, chief market analyst at IG, says a cursory glance at the market reaction to last night’s Fed would suggest that Powell was a major disappointment for investors.

That is not really fair, though. The Fed’s commitment to long-term support for the US economy is now stronger than ever, he says.

“Quite apart from leaving rates in deep freeze for the next two years (at least), the clear message has been that the world’s most-powerful central bank is committed to repairing the damage to the US economy wrought by COVID-19, regardless of what markets do,” Beauchamp says.

“Investors underestimate the Fed at their peril.”

We love this gif.

But perhaps the lack of any fresh action meant that a short-term drop in stocks was all but guaranteed, Beauchamp says.

“The big question will be whether the 1000-point fall in the Dow this week will end up the previous ones since March, and simply provide investors with the chance to renew their commitment to this equity rally,” he says.

 

SMALL CAP WINNERS

Here are the best performing ASX small cap stocks at 12pm on Friday June 12:

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CODE COMPANY PRICE CHANGE MARKET CAP
CCE Carnegie Clean Energy 0.002 50.00% $11.1M
FEL Fe 0.016 33.33% $8.3M
ODA Orcoda 0.13 18.18% $18.0M
GUL Gullewa 0.13 18.18% $20.3M
AMO Ambertech 0.058 13.73% $4.5M
CRS Caprice Resources 0.175 12.90% $5.7M
GBP Global Petroleum 0.011 10.00% $2.2M
M7T Mach7 Tech 0.835 8.72% $151.9M
OVT Ovato 0.013 8.33% $9.5M
DTM Dart Mining 0.065 8.33% $4.2M
JAL Jameson Resources 0.145 7.41% $38.3M
SIH Sihayo Gold 0.017 6.25% $38.9M
FXL Flexiroam 0.017 6.25% $451.6M
TCN Techniche 0.036 5.88% $7.6M
AME Alto Metals 0.075 5.63% $22.0M
IQ3 iQ3Corp 0.19 5.56% $19.8M
BKY Berkeley Energy 0.295 5.36% $75.0M

 

Wave farmer Carnegie Clean Energy (ASX:CCE) is involved in four short-term scoping projects recently awarded funding by the Blue Economy Cooperative Research Centre (BECRC).

The BECRC is coordinating a +$300m program to advance Australia’s blue economy in the areas of seafood production, marine renewable energy and offshore engineering.

Carnegie jumped 50 per cent, but reiterated that it wont be paid for the “modest amount of staff time which will help guide the direction of future BECRC research”.

Logistics company Orcoda (ASX:ODA) has signed a nine-year contract to provide guest transit and rideshare services to Mt Buller Ski Resort during the yearly ski seasons.

The deal is worth about $2-3m per year, or $20-30m if the contract runs the full nine years.

The stock was up 18 per cent in morning trade.

Gullewa (ASX:GUL) moved higher after TSX-listed Central Iron Ore – of which it owns 36.7 per cent – released an “outstanding” drill result from its South Darlot gold project JV with Red 5 (ASX:RED).

Significant gold intercepts, including 1.6m grading 124.4 grams per tonne (g/t) gold 37m from surface, sent Central Iron Ore shares rocketing on the TSX from 2 Canadian cents to 16.5 Canadian cents.

 

SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks at 12pm on Friday June 12:

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CODE COMPANY PRICE CHANGE MARKET CAP
ISU Isentric 0.016 -42.86% $52.4M
VIC Victory Mines 0.001 -33.33% $3.1M
ICG Inca Minerals 0.001 -33.33% $4.1M
UUV UUV Aquabotix 0.001 -33.33% $758K
HIP Hipo Resources 0.01 -28.57% $3.9M
CAV Carnavale Resources 0.003 -25.00% $4.5M
BMG BMG Resources 0.003 -25.00% $1.8M
AAJ Aruma Resources 0.003 -25.00% $2.1M
DDD 3D Resources 0.003 -25.00% $9.9M
RNX Renegade Exploration 0.003 -25.00% $2.1M
MPP Metro Performance Glass 0.19 -22.45% $45.4M
EPM Eclipse Metals 0.007 -22.22% $9.9M
EN1 Engage:BDR 0.005 -21.43% $4.6M
XTC Xantippe Resources 0.002 -20.00% $6.7M
MGT Magnetite Mines 0.002 -20.00% $4.5M
HZR Hazer Group 0.46 -19.30% $52.3M
IXU IXUP 0.013 -18.75% $2.9M
ALG Ardent Leisure 0.44 -18.52% $213.5M
CCA Change Financial 0.11 -18.52% $29.2M
KTG K-Tig Ltd 0.135 -18.18% $19.5M
WCN White Cliff Minerals 0.009 -18.18% $4.4M
HLX Helix Resources 0.009 -18.18% $5.3M