Market Highlights and 5 ASX Small Caps to watch on Friday

Wall Street plummets to end the quarter

All three US stock market benchmarks fell overnight, as US Congress passed a last minute legislation that will keep the government funded until December 3rd and avoid a shutdown.

The Dow Jones fell by 1.59% and the S&P 500 fell by 1.19%, with a lighter 0.44% drop for the tech-heavy Nasdaq.

With only hours to spare, Congress passed a short term funding measure that would keep the US government running temporarily.

US Treasurer Janet Yellen has earlier warned the US government will run out of money by October 18th if the debt ceiling is not raised, which could prove ‘catastrophic’.

Stock markets dropped despite fresh data showing the US economy growing by 6.7% annual rate in the June quarter, vs forecast growth of 6.6%.

In other markets, spot iron ore climbed another 3% overnight to US$118.25, after a 2% rise the previous day.

Other metals including copper and aluminium were down around 2%.

To cryptos, where Bitcoin has gained ground and is trading US$43,800 at 8:00am AEST this morning, from US$41,200 yesterday.

The entire market cap is sitting at US$1.977 trillion, slowly heading back to the two-trillion mark it lost a couple of days ago.

ASX 200 to open lower on Friday

The ASX 200 looks set to open sharply lower his morning, with futures markets (December contracts) pointing down down 1.60% at 8:30am AEST.

Yesterday, the Aussie benchmark had its best day of the year, rising by 1.88%.

The ASX finished September on a solid note, but was still down by 3% for the month, its worst since March 2020.

Later today, the CoreLogic dwelling prices for September will be released.

5 ASX small caps to watch today

Genex Power (ASX:GNX)
The company has executed a supply agreement deal with Tesla Motors Australia for its Bouldercombe Battery Project. Under the deal, Genex will be Tesla’s preferred battery supplier and integrator developed using Tesla’s Megapack lithium-ion battery technology.The 50MW/100MWh battery will comprise of 40 Megapacks and will be fully operational in the first half of CY23.

Lunnon Metals (ASX:LM8)

Results from the Company’s East Cooee Hanging-wall prospect at the Kambalda Nickel Project include: 1.0m @ 7.44% Ni and 2.0m @ 3.46% Ni.

American Pacific Borates (ASX:ABR)

The company says it will be listed in the US via a Nasdaq Direct Listing in late December or early CY22.  A direct listing allows companies to list on Nasdaq without concurrently raising capital. All shares held by ABR shareholders will be transferred to 5E Advanced Materials, Inc, its newly formed US company. ABR says it will be possible to transfer holdings from ASX CDIs to NASDAQ shares and vice versa.

Credit Intelligence (ASX:CI1)

The company has officially launched its personal BNPL service in Hong Kong, www.ekbuy.com.hk. The platform will initially focus on the local market in Hong Kong, covering a wide range of consumer products, to capture the opportunity in changing consumer behaviour in the personal BNPL sector since the outbreak of COVID-19.

Nickel Mines (ASX:NIC)

The company has completed its 80% acquisition of the Angel Nickel project. The Angel Nickel project comprises four next generation RKEF (Rotary Kiln Electric Furnace) lines with nameplate nickel production of 36,000 tonnes per annum, and a 380MW power station.

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