Market Highlights: Airbnb slump, Fed clues, and 5 ASX small caps to watch on Wednesday
Australian shares are poised to open flattish on Wednesday. At 8am AEST, the ASX 200 Dec futures contract was pointing slightly up by 0.05%.
In New York overnight, major US stock indices fell less than 1% as investors brace for a key US Fed decision tomorrow.
Highlight was Nasdaq-listed Airbnb, which slumped 6% after the bell following a disappointing outlook for Q4.
The company said the pace of bookings will “moderate slightly” and expects Q4 revenue to be $US1.88 billion, below estimates of $US1.86 billion.
FOMC members have begun a two-day huddle which will determine the next rates move. Analysts are expecting another jumbo 75bp move, and they’ll be closely monitoring the wording from Fed Governor Jerome Powell.
It will be difficult for the Fed to deliver a dovish market tomorrow as fresh data releases continue to paint a buoyant economy.
In the JOLT job openings data released overnight, vacancies were shown to have climbed by 437,000 to 10.7 million in September. The US ISM manufacturing report also came in better-than-expected, signalling that the goods sector of the economy is doing just fine.
US Treasury yields have been climbing over the last few days in anticipation of a hawkish Fed decision.
Back home, RBA also raised its official cash rate yesterday, by 0.25% to 2.85%, largely in line with expectation.
Chris Siniakov, portfolio manager of Franklin Templeton Fixed Income, has this to say:
“Consumer confidence is now at levels previously associated with recessions. History has shown that behaviour shifts gradually, then suddenly. We look forward to 2023 with great caution,” he said.
In other markets, crude prices jumped 2% after rumours that China was preparing for a full reopening in March 2023. Brent was trading at US$94.75 a barrel.
But OANDA analyst Edward Moya believes that “risks to energy supplies remain elevated after reports that Iran was planning an attack on targets that include Saudi Arabia and Northern Iraq.”
Gold also rose 1% to US$1,647.80 an ounce, while spot iron ore climbed 1% to US$80.15% a tonne.
Bitcoin continues to hover above the US$20,000 level ahead of the Fed, trading now at US$20,480.
Meanwhile, Golden State Warriors point guard Stephen Curry reportedly filed a trademark for the “Curryverse” on October 26, according to various news sources and an official application in the US.
Read more about that story here on Coinhead.
Looking ahead to today’s ASX session, building approvals data for September is due to be released.
Halo Food (ASX:HLF)
Halo’s 100% owned subsidiary The Healthy Mummy will have its products ranged nationally in Woolworths supermarkets in Australia. Woolworths will shelf three core THM powdered smoothie products from the first quarter of CY 2023. The sales value of the product is forecast to be approximately $2.5 million in the first year.
Clearview Health (ASX:CVW)
The financial services company has completed the strategic review process it initiated in September 2021 and decided not proceed with any takeover offers the company has received. Clearview also released a guidance. Based on its YTD performance, Clearview says it is on track to achieve growth in underlying NPAT in FY23 in the range of $28.5m to $30m.
Widgie Nickel (ASX:WIN)
Lithium focused drilling has commenced at the Faraday prospect. Six holes totalling 740m are to be followed up on initial rock chip sampling. Recently identified high-grade lithium bearing pegmatites at Faraday have returned up to 3.70% Li2O from rock chip sampling.
The Galeria Exploration Licence, which is highly prospective for lithium in geothermal brines, has been granted by the Lazio Regional Government for an initial two-year period. Altamin says the geothermal systems of Tuscany and Lazio are amongst Italy’s most productive and prospective.
Indiana Resources (ASX:IDA)
Assays have been returned from August 2022 Minos and Ariadne drill programme, with significant results including 10m @ 4.40g/t Au from 123m, and 15m @ 1.97g/t Au from 91m. Further RC drilling is planned at Minos and Ariadne for early December.