• The AI frenzy has lost a bit of shine as the Fang + Index slumped almost 3%
  • Coinbase says ‘business as usual’ after being charged by the SEC
  • Gold down 1% as the bond market signals more rate hikes

 

Aussie shares are set to fall on Thursday as US stocks tumbled in New York. At 8am AEST, the ASX 200 index futures was pointing down by -0.15%.

Overnight, Tech stocks on Wall Street sold off as the AI frenzy loses momentum. At the close, S&P 500 was down by -0.38%, and tech heavy Nasdaq by -1.29%.

The NYSE Fang + Index slumped almost 3%, with Alphabet and Microsoft dropping more than 3%.

Stocks that gained include Coinbase, Gamestop and Netflix. JP Morgan says Netflix’s decision to crack down on password sharing would generate close to US$6bn in extra revenue in 2024 and 2025.

US Treasury yields meanwhile climbed as traders put on more bets the Fed will hike rates further come June 13.

This comes as the OECD raised its global 2023 outlook to 2.7%, up from its March forecast of 2.6%.

The Paris-based organisation however was bearish on the US, Europe and China, saying they will experience the ‘same relative sluggishness in their recoveries’.

Data showed that Chinese exports in May have slumped, a sign that demand for goods from its major partners is also slowing down.

 

Coinbase says it’s ‘business as usual’

Binance US customers are rushing for the door after the US SEC charged the company earlier this week and moved to freeze the platform’s assets.

The SEC said that Binance operated a shell company and diverted customer funds to outside entities. Binance said it’s now trying to negotiate a settlement with the SEC.

Next door, Coinbase is also facing an SEC complaint.

Coinbase CEO Brian Armstrong however said he’s not losing many customers at this point, and has US$5 billion on its balance sheet to sustain operations and fight the legal battle.

“I think we’re gonna be fine going to the court. Even if this takes some time, that’s OK,” Armstrong told Bloomberg.

“We are not going to wind down our staking services. As these court cases play out, it’s really business as usual,” he added.

Now read: ‘Bigger than any one company or person’: BTC Markets CEO on SEC and ‘tumultuous’ state of crypto

 

In other markets …

Crude oil prices gained 1% after the EIA (Energy Information Administration) report signalled the US will see strong travel demand this summer.

Elsewhere, gold fell -1% to US$1,943.60 an ounce.

“Gold is getting crushed as the bond market signals rate hiking cycles are not ready to end,” said Oanda analyst, Edward Moya.

Moya said the Bank of Canada decision last night to raise its cash rate by 25bp has sent shivers down the spine of most gold bulls.

Bitcoin meanwhile tumbled -3% in the last 24 hours to US$26,296.

 

5 ASX small caps to watch today

Clara Resources Australia (ASX:C7A)
Clara says it has seen encouraging results from the initial Options Study phase for coal processing at the company’s Ashford Coking Coal Project in northern NSW. Simulations demonstrate that a coking coal with ash in the range of 9.0% to 10.5% can be produced. This verifies those long-held assumptions that, if washed, the Ashford resource will produce a high-quality coking coal.

Andromeda Metals  (ASX:ADN)
Andromeda has signed a binding offtake agreement with Japan’s Plantan Yamada to deliver high-quality kaolin from The Great White Project into the Japanese market. The agreement is for supply of 25,000 tonnes of Great White KCM 90 kaolin over the first three years of production.

RareX (ASX:REE)
Recent testwork on samples from the Cummins Range Rare Earths & Phosphate Project in WA has further confirmed the strong potential of Cummins Range phosphate Direct Shipping Ore (DSO) to be used as direct-application agricultural fertiliser. These results offer the potential of Cummins Range DSO material to use lower head grades, whilst still achieving the same fertiliser benefits, increasing the potential for larger production volumes.

Blue Energy (ASX:BLU)
Blue has signed a non-binding MOU with Queensland Pacific Metals Energy (ASX:QPM) to facilitate supply gas on an “as available” basis into QPME’s newly acquired Moranbah Gas Project plant at Moranbah. Engineering works will commence shortly to establish the mechanics and logistics of tie in points and transfer points for the delivery of the gas.

International Graphite (ASX:IG6)
Assays received for the next 24 reverse circulation (RC) drill holes at the Mason Bay exploration target, ~2km east of the existing Springdale Graphite Project mineral resource include: 11m @ 11.7% Total Graphitic Carbon from 57m downhole, including 1m @ 23.0% TGC from 63m downhole.

 

At Stockhead we tell it like it is. While Rare X and International Graphite are Stockhead advertisers, they did not sponsor this article.

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