ASX Small Caps Lunch Wrap: Who’s rooting for lower for longer today?
Unlike “higher for longer” loving central bankers, unlike an SEC chairman getting off on ‘BTC ETF DELAYED’ rubber stamping action, the ASX200 is very much the opposite of aroused so far today.
See here, at the time of writing…
There are extenuating reasons for that, and as nearly always, they’re led by much ado about something or other over in the US of A. Wall Street and the US stock market indices all trended lower overnight – and that can be broadly put down to the “higher for longer” Fed interest rates narrative.
Meanwhile, on this side of the world, a similar bunch of ancient reptiles have been rooting for a different kind of spin.
According to reports from various reporters covering the Central North Queensland crocodilian beat, the sound of a low-flying Chinook chopper gets crocs in a right toey state. Who knew, eh? Not me, but now me, and now you.
An ABC report has the finer details, but essentially, the owner of the Koorana Crocodile Farm in Rockhampton has more or less confirmed that the bulls among some 3,000 crocs on his books were sent into a sex-crazed FRENZY to (almost) rival Michael Douglas in Basic Instinct when a Chinook helicopter flew slow and low over the property recently.
Why are we talking about this? Good question, maybe just roll with it – we’ll get back to financials in a tick.
Helicopters are frequently seen over the area, apparently, as the Singapore Armed Forces hold bilateral military training operations in the Shoalwater Bay area and pilots apparently use the croc farm as some sort of reference point.
John Lever, the farm’s owner told the ABC that one helicopter came in low to get a good look at the crocodiles, and the result was this…
“All of the big males got up and roared and bellowed up at the sky, and then after the helicopters left they mated like mad,” he said.
“There’s something about the sonic waves that really gets them stirred up.”
Right then, that’s about all you need to know on that score. Let’s see what’s firming, if anything, on the ASX.
Another quick check of the ASX200 tells me that… yes, it’s still very much in the red as I reach for the chicken and salad wrap I was just handed by a kind soul, who I’ll pay later. Probably.
Wasting no more time then, let’s grab a bead on the sectors. Looks like a stairway to hell here, although that might be overselling the gloom just a tad.
Onya, then, Utilities. Well played and keep it up.
Meanwhile, our esteemed editor, who’s also a rugged farmer type, sent us this slightly disturbing footage earlier: “The collective sound of a nation of homeowners relaxing after yesterday’s RBA interest rates-pausing decision”.
Treating & saving a cow that had trapped gas, The result of eating too much silage too quickly🐄
Credit: TT /adelerowley pic.twitter.com/pGolG43iVN
— H0W_THlNGS_W0RK (@HowThingsWork_) October 3, 2023
As Christian “I Guess I’m Supporting France Now” Edwards wrote in the Market Highlights column this morning…
“Aussie shares are headed for another early October retreat after US stocks slumped overnight after a lot more new US jobs turned up in August – which is bad – and really iced the higher-for-longer cake they’ve been baking over at the US Federal Reserve.”
Higher for longer, eh? US Treasury Secretary Janet Yellen doesn’t seem so convinced…
Did Yellen just pull the rug from underneath the Fed speakers?
— Sven Henrich (@NorthmanTrader) October 3, 2023
Then again, it’s not like she hasn’t been wrong before.
But needless to say, there’s a lot of fear in global markets at present. Extreme fear as it so happens. And we probably don’t need to remind you about what Warren Buffett says about fear in the market, so we won’t.
FEAR AND GREED INDEX: 20/100 = EXTREME FEAR pic.twitter.com/ksYKQKhPBU
— Breaking Market News (@financialjuice) October 3, 2023
Just quickly, some stats that may interest:
Gold price was down -0.06% to US$1,822 an ounce.
Oil prices moved back up a fraction: +0.04%, with Brent crude now trading at US$90.96 a barrel.
Iron ore dropped 0.54% to US$110.20 a tonne.
Base metals prices were mixed with nickel futures rising, and copper futures falling.
The Aussie dollar is still on struggle street at around US64.27c.
Bitcoin meanwhile has also dipped a tad, about 1% and is currently trading hands for roughly US$27,288.
Here’s professional Bitcoin hater and gold bug Peter Schiff, not actually laying into BTC this time, but funnily enough, probably helping its narrative here, alluding to a need for more copious money printing…
If bond yields keep rising at the current pace we are weeks away from a second, far larger wave of bank failures. That would result in the biggest QE program yet to finance the biggest bank bailout. The only way to avert this crisis is for the Fed to take action before it starts.
— Peter Schiff (@PeterSchiff) October 3, 2023
Here are the best performing ASX small cap stocks for October 4 [intraday]:
Swipe or scroll to reveal full table. Click headings to sort:
A few things catching our eyes…
• Lithium-hunting junior Bulletin Resources (ASX:BNR) is up more than 25% today on news that it’s all but got its EPA approvals to begin drilling at its Ravensthorpe lithium project in WA’s Great Southern region.
The Environmental Protection Authority (EPA) has decided it’s “unnecessary” to assess the environmental impacts of clearing and drilling.
This stock is high on the list of Stockhead columnist Barry Fitzgerald’s ones to watch. “The project sits 12km southwest and along strike from Allkem (ASX:AKE) ageing Mt Cattlin mine, itself all of 2km from the town of Ravensthorpe,” wrote Barry recently.
• Noxopharm (ASX:NOX) is crushing it again today after being caught with a speeding ticket yesterday by the ASX police. The Aussie biotech has today shared the news that the US Food and Drug Administration has granted Orphan Drug Designation (ODD) status to Noxopharm’s CRO-67 preclinical drug candidate, for the treatment of pancreatic cancer.
The FDA grants ODDs for drugs designed to prevent, diagnose or treat rare diseases or conditions, and the designation comes with various benefits that include:
– Tax credits for qualified clinical trials
– Exemption from user fees (e.g. FDA application fees)
– Potential seven years of market exclusivity after approval
So far this year only x2 other Aussie companies have received an ODD from the FDA, from a total of 260 issued.
• Redstone Resources (ASX:RDS) has revealed it’s partnering with Galan Lithium (ASX:GLN) ‘to further solidify its exposure to the highly sought after, Tier‐1 mining jurisdiction, that is the James Bay Lithium district in Québec, Canada.’
As Christian wrote earlier, yep, RDS is in like Flynn at James Bay and – wait, there’s more – it’s secured an option in northwest Ontario, another premier Canuck lithium area.
For more lithium and battery metals news, head over to today’s High Voltage column.
Here are the most-worst performing ASX small cap stocks for October 4 [intraday]:
Swipe or scroll to reveal full table. Click headings to sort: