• ASX dips as traders weigh China’s stimulus against Trump’s tariffs
  • Miners soften blow but insurance stocks still taking hits
  • Trump gives speech to Congress, here’s what he said…

 

The ASX had a bit of a ride on Wednesday, with a sharp dip of over 1% in the morning before making a small recovery this afternoon.

By the close of day, the benchmark S&P/ASX 200 index was down by 0.8%.

The earlier sharp dip was down to the broader global picture, as traders weighed Trump’s tariffs against a wave of new stimulus measures announced by China today.

The Chinese government has unveiled new measures to boost its flagging economy as Beijing starts to realise how serious the tariff situation is.

In a nutshell, China has set its GDP target for 2025 at around 5%, raised its budget deficit to 4% of GDP, and announced stimulus measures including issuing 1.3 trillion yuan in ultra-long-term bonds.

While that was happening, over in the US, President Trump was making a speech to Congress.

In his speech, he doubled down on his aggressive use of tariffs, saying that while there might be an “adjustment period” the US is “okay with that”.

He also talked about the “disturbance” tariffs could cause, but insisted that the US economy was bouncing back, and “momentum is back”.

Whether the market agrees with him is another question. But Trump did promise more jobs and projects, like a huge new natural gas pipeline, which he called one of the largest in the world.

He also outlined plans to ramp up production of critical minerals and rare earths, which he said could help the US become “less reliant on other countries”.

“History has proven that protectionist policies of this magnitude don’t end in prosperity, but in economic isolation, slower growth and inflationary pressures that ultimately hit consumers and businesses hardest,” said de Vere Group’s Nigel Green.

 

Back to the ASX, the biggest hit today came from consumer staples, where stocks like Woolworths (ASX:WOW) and Coles Group (ASX:COL) dropped more than 3%.

The banks also didn’t do much to help the overall market, with the Big Four all dropping by more than 1%.

Meanwhile, the miners managed to soften the blow a bit despite iron ore prices continuing their slide below US$100 a tonne.

 

Source: MarketIndex

 

Source: MarketIndex

 

In large caps news, WiseTech Global (ASX:WTC) said that after the resignation of four directors on February 26, the company is now running a bit short on independent directors.

This means it’s currently not in compliance with an important ASX listing rule – namely, that its Audit & Risk Committee should have at least three independent directors.

WiseTech said it expects to appoint a new director within the next month to bring things back into line with ASX regulations. Shares were up 1%.

Mineral Resources (ASX:MIN), on the other hand, had a bit of a rough day, dropping 3% after Fitch Ratings downgraded its unsecured debt.

Fitch lowered MinRes’ credit rating to BB- from BB, with a negative outlook, aligning it with the company’s current Moody’s rating of Ba3, which has been in place since 2019.

Fitch said the downgrade was based on MinRes’ increasing debt load and higher risks to its balance sheet. MinRes has been struggling recently, posting a hefty loss of $807 million in its interim results and slashing its dividend.

Elsewhere, Data#3 (ASX:DTL) fell by 1% after announcing the departure of board member Susan Forrester, who’s been with the company for three years.

And finally, insurance stocks tumbled again. with Suncorp Group (ASX:SUN) and QBE Insurance (ASX:QBE) both seeing extended sell-offs. Concerns are growing about the path of Tropical Cyclone Alfred, and what damage it could do.

 

 

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

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Blue Star Helium (ASX:BNL) has spudded the Jackson 4 well at its Galactica helium project in Colorado, with drilling operations progressing toward the Lyons Formation. The well is part of the broader Galactica/Pegasus development, which has demonstrated strong helium flows and is advancing toward commercialisation.

Litchfield Minerals (ASX:LMS) has uncovered a major chargeability target at its Oonagalabi project, with two large sulphide-bearing anomalies stretching over 1km and going more than 500m deep. These chargeable zones, never drilled before, could indicate a higher-grade core to the system, and with strong chargeability responses extending along a 3km soil anomaly, there’s big potential for a major discovery, said the company. A drill-for-equity deal with Bullion Drilling will fast-track drilling, and the company has also secured an Environmental Mining Licence for the project.

Argent Biopharma (ASX:RGT) has teamed up with ECCPharm for a strategic manufacturing partnership where ECCPharm will handle all GMP manufacturing and batch release for Argent’s cannabinoid treatments, CannEpil and CogniCann. This move will let Argent focus on clinical development and regulatory expansion while cutting operational costs. The manufacturing will shift from Argent’s European facilities to ECCPharm’s state-of-the-art plant in North Macedonia, with the aim to meet rising global demand for these therapies in key EU markets.

AusQuest (ASX:AQD) is gearing up for Stage 2 of drilling at its Cangallo Project in Peru, after initial drilling showed signs of a big copper-gold system buried under shallow cover. The first round of drilling found copper veining and hydrothermal alteration, suggesting the margins of a large porphyry system nearby. With copper grades up to 1.1%, the team’s hopeful that the centre of the system holds even higher grades. Stage 2 drilling, set to start in April, will focus on extending the mineralisation and hunting for the system’s core.

 

ASX SMALL CAP LAGGARDS

Today’s worst performing small cap stocks:

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IN CASE YOU MISSED IT

Antipa Minerals (ASX:AZY) has regained full ownership of the Wilki project in WA’s Paterson Province after Newmont Corporation pulled out of the farm-in agreement. The company has its sights set on a significant 16,000-metre drilling campaign at the Parklands target in the first half of this calendar year.

Norwest Minerals (ASX:NWM) has discovered titanium-rich zones and silver-base metal mineralisation at its West Arunta project, following a 43-hole RC and aircore drilling program across its Malibu prospect. The company is planning follow-up drilling to expand on the Malibu and Dales discoveries.

St George Mining (ASX:SGQ) has kicked off metallurgical test work for its Araxá niobium and rare earth project in Brazil, focusing on optimising niobium and rare earth recoveries through flotation processing. The initial phase will assess the mineralisation’s suitability for flotation and explore new technologies to enhance recovery and lower costs.

Kingsland Minerals (ASX:KNG) has shipped a bulk sample of Leliyn graphite concentrate to Germany for metallurgical testwork. Resource estimation work is also progressing to upgrade the current inferred resource, with both activities supporting a future scoping study for a graphite mining and processing operation.

Impact Minerals’ (ASX:IPT) largest shareholder is committing to its full entitlement in the $5.2 million renounceable rights issue, with underwriting increased to $2 million. The funds will support exploration at the Arkun and Broken Hill projects, development of the Lake Hope HPA project, and general working capital.

AdAlta (ASX:1AD) has secured a $424,600 advance against its FY25 R&D tax incentive rebate to support its “East to West” cellular immunotherapy strategy. The funds will be used immediately to drive the company’s growth objectives.

Miramar Resources (ASX:M2R) has lodged tenement applications over several shallow historical gold drill intersections at its Randalls project near Kalgoorlie, WA. The company aims to establish a strategic land position along the highly prospective but underexplored Randall Fault.

 

At Stockhead, we tell it like it is. While Antipa Minerals, Norwest Minerals, St George Mining, Kingsland Minerals, Blue Star Helium, Impact Minerals, AdAlta and Miramar Resources are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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