• ASX 200 is up 0.2% and the XEC is down -0.2%
  • Tension stateside ahead of FOMC decision, EU markets to start flat
  • CPI at 6.1% is better than feared but enough to move the RBA next Tuesday
  • And a crack team of small caps broke out of the ordinary and went totally nuts

 

Across the Pacific, US and European investors are starting to roll out of bed and screw their courage to the breakfast plate ahead of The Fed’s conclusions following their very intense two-day policy meeting.

Everyone’s largely forecasting a second straight 75 basis point bump to interest rates.

Like many central banks around the world, the Fed is acting aggressively to rein in inflation against a backdrop of slowing economic activity.

Like local markets, possibly even chiller, I hardly missed a beat when the June inflation figures dropped. Headline inflation slipped in at 6.1% year on year, that number slipped in under the 6.3% most economists slipped up by expecting.

The Australian Bureau of Statistics says they’re still the worst in terms of size and speed since the GST (Goods and Services Tax) slipped into our lives back in about 2000.

All eyes at home are now on the Reserve Bank of Oz, the money is for the cash rate to head on up by 50 basis points to 1.85% next Tuesday.

The RBA’s preferred measure of underlying inflation, the trimmed mean which snatches out some of the primary drivers like petrol – rose by 1.5% over the qtr and 4.9% higher over the year.

“It is clear inflation is running hot in Australia,” says CBA’s senior economist Belinda Allen, “and further rate rises will be needed.”

“We expect headline inflation to peak at ~ 6.75% YoY over the next two quarters.” Belinda added that the inflation data printed very close to CBA expectations.

“As a result we retain our call that the RBA will lift the cash rate by 50bp at the August Board Meeting.”

On equity markets, the benchmark was in the red at 11.30am when the CPI dropped. Tech, Mining and Energy giving back some of the riches stolen on Tuesday.

 

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks [intraday]:

Swipe or scroll to reveal full table. Click headings to sort:

Buy Now Pay Later lives.

It’s, and I really hate to say it, sizzling today – as jilted Zip Co partner, Sezzle (ASX:SZL) more than doubled its share price after already rising powerfully on Tuesday as well.

Sezzle stock not worth the price of a BBQ steak, is 95% higher just ahead of the bell.

Over the last week the business wooed and wasted by Zip Co (ASX:ZIP) has now found 200% of extra sausage to sizzle.

Sezzle is in a bit of a trading halt now, pending a further announcement, according to the ASX.

Over in the other lane, Zip is up  20% for no apparent reason. Month to date, that bad boy is up circa 150%.

Cobre (ASX:CBE) shares are officially nuts on Wednesday too. At least this punchy biz has a copper find at its Ngami Copper Project (NCP) in the Kalahari Copper Belt (KCB), Botswana has struck visual mineralisation which is bigger and thicker and all investors might have hoped.

Cracked with a speeding ticket after racking up 70% or so of un-news-related share price excitement, Nuenergy Gas (ASX:NGY), is still in a trading halt, pending an explanation.

 

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks [intraday]:

 

WHAT YOU MAY’VE MISSED ON THE ASX TODAY

Just a couple of quick results that came in across the afternoon, in amongst a flurry of Trading Halts, which have been itemised below for your reading pleasure.

AusQuest (ASX:AQD) says it’s completed drilling three holes at its Hamilton Copper Project in North-West Queensland, and is happy with some promising early results from the exploration.

The company says it’s spotted moderate-to-strong off-hole EM response close to drill-hole HMDDH018, highlighting the potential for a sulphide body within the mineralised BIF sequence.

Meanwhile, Austral Gold (ASX:AGD) has some new figures from drilling at its Casposo-Manantiales project in Argentina, which look like this: 

  • 4.40m @ 18.65g/t gold and 58g/t silver, including 3.12m @ 26.04g/t gold and 37g/t silver 
  • 2.35m @ 15.61g/t gold and 81g/t silver, including 1.58m @ 22.30g/t gold and 116g/t silver
  • 2.50m @ 9.73g/t gold and 49g/t silver, including 0.90m @ 25.48g/t gold and 125g/t silver

 

TRADING HALTS

Memphasys (ASX:MEM) – Capital raise

Siren Gold (ASX:SNG) – Who could possibly resist the Siren SNG, calling out for a capital raise?

Creso Pharma (ASX:CPH – Capital raise

Way 2 Vat (ASX:W2V) – There’s an acquisition in the works! 

New World Resources (ASX:NWC) – NWC wants time to consider, plan and execute a capital raise. They’re not the only ones.

Linius Technologies (ASX:LNU) – Capital raise.

Theta Gold Mines (ASX:TGM) – Theta’s got a DFS on the way.

dorsaVi (ASX:DVL) – … it’s a capital raise.

Cygnus Gold (ASX:CY5) – Material acquisition! … and a capital raise.

Metro Mining (ASX:MMI) – announcement regarding completion of an institutional placement and launch of a share purchase plan.

Cipherpoint (ASX:CPT) – Ooooh. An acquisition.

K-TIG (ASX:KTG) – Material agreement announcement incoming.

NuEnergy Gas (ASX:NGY) – Price and volume query.