• ASX to extend gains on Monday
  • Iron ore nears US$160 a tonne
  • US yield curve inverted, signalling a recession

ASX to rise as iron ore nears US$160

Local shares are set to extend their gains, with the ASX 200 April futures pointing up by 0.70% at 8am AEDT.

Last week, the benchmark index rose 1.32%.

Metal miners are expected to do well today as the spot iron ore price surged to an 8-month high of US$159.95 a tonne.

In equities, US stock markets closed Friday higher by around half a percent even as the US treasury yields inverted.

The US 2-year yield is at 2.46%, higher than the 10-year yield of 2.38%. An inverted curve is historically a sign of an oncoming recession.

In the energy market, the International Energy Agency (IEA) said they were willing to join in the largest-ever US oil reserves release, without stipulating on volumes and commitments of each country. Brent crude fell to US$104 a barrel on the news.

To cryptos, where Bitcoin has rallied to US$46,850 at 8.20am AEDT, from the US$45k level on Friday.

The leading crypto coin had slumped on Friday after the European Parliament voted to clamp down on crypto privacy, but found support back above that level over the weekend.

ASX IPOs this week

According to the ASX and Stockhead’s Christian Edwards, these stocks will make their debut this week:

Firetail Resources (ASX:FTL), an explorer that holds tenements in Queensland and Western Australia and lithium rights to certain tenements in the Yalgoo Lithium province. It raised $8.12m in the IPO at 25c a share.

Top End Energy (ASX:TEE), an explorer of oil, gas and other associated product streams (including helium and hydrogen) that aims to be a net zero emissions energy producer. It raised $6.4m in the IPO at 20c a share.

International Graphite (ASX:IG6), an explorer and developer that’s aiming to develop the first fully integrated graphite production facility in Western Australia. It raised $10mm in the IPO at 20c a share.

Microba Life Sciences (ASX:MAP), a company focused on delivering gut microbiome testing services globally to consumers, clinicians, and researchers. It raised $30mm in the IPO at 45c a share.

Sarytogan Graphite (ASX:SGA), an explorer with deposits is in the Karaganda region of Central Kazakhstan. It raised $8.5mm in the IPO at 20c a share.

Finder Energy Holdings (ASX:FDR), an oil and gas explorer that has a substantial acreage portfolio in two of the world’s premier hydrocarbon basins – the Northwest Shelf of Australia and the United Kingdom North Sea. It raised $15mm in the IPO at 20c a share.

Noble Helium (ASX:NHE), an explorer that’s all about identifying, exploring and developing helium assets in United Republic of Tanzania. It raised $10mm in the IPO at 20c a share.

Osmond Resources (ASX:OSM), an explorer targeting gold and base metals in SA and VIC. It raised $5mm in the IPO at 20c a share.

5 ASX small caps to watch today

Wide Open Agriculture (ASX:WOA)
WOA confirmed that its regenrative food brand, Dirty Clean Food, has received and shipped initial oat milk orders from Woolworths . Woolworths has also increased its ranging of Dirty Clean Food Oat Milk from 500 stores to 650 nationwide.

Novatti (ASX:NOV) and Reckon (ASX:RKN)
Both companies entered into a deal to integrate Novatti’s payments systems into Reckon products. Both parties will initially focus on incorporating payments offering in the Reckon One solution and new invoicing app. Novatti is Reckon’s largest shareholder, and holds a 19.9% stake.

Biome Australia (ASX:BIO)
Biome has successfully launched its newest probiotic Biome Acne Probiotic for sale to its network of over 2500 community pharmacies and independent health practitioners in Australia. This follows the recent publication of an independent clinical trial confirming the efficacy of Biome Acne’s probiotic strains in treating acne lesions.

Bio-Gene Tech (ASX:BGT)
BGT signed a deal with Clarke Mosquito Control to develop and commercialise new insecticide solutions for the US market. Clarke is the largest company serving the public health mosquito control market in the US.

Australian Rare Earths (ASX:AR3)
Mineralogical analysis and metallurgical testing on samples from the Red Tail and Yellow Tail resource in the Koppamurra Project continue to deliver positive results, says AR3. The Koppamurra resource is recognised as a clay hosted REE deposit, characterised by a combination of ionically adsorbed, acid soluble and refractory rare earth minerals.