Market Highlights and 5 ASX Small Caps to watch on Thursday

Wall Street rebounds as iron ore plunges again

Australia has just signed a historic defence agreement with the US and UK called the AUKUS this morning, which will include helping Australia to build nuclear-powered submarines.

To the markets, all three US stock market benchmark indexes rebounded overnight, as oil prices climbed by 3%.

The Dow Jones rose by 0.68%, S&P500 by 0.85%, and tech heavy Nasdaq by 0.82%.

Oil prices rose as data showed a larger than expected drawdown in US crude oil inventories, raising the expectations that oil demand will pick up.

US-listed oil stocks like Diamondback and EOG jumped by 8% as a result.

Roger Federer-backed shoes brand On Holding (ticker ONON) made its debut on the NYSE, and jumped by 47%.

Meanwhile, the spot iron ore price has plunged again overnight, this time by 5.8% after a 1.8% fall yesterday. The ferrous metal is now trading at US$113.40, down more than half from its record levels of US$233/t hit in May.

(Corrected for typo re US shares)

Eurozone shares -1.1%
US shares +0.8% as growth fears receded
US 10 yr yld +2bp to 1.3%
Oil +2.8% to $72.7
Gold -0.5% to $1794.6
Iron ore -5.8% to $113.4
ASX futures +0.4%$A 0.7335 with $US index -0.2%

— Shane Oliver (@ShaneOliverAMP) September 15, 2021

To cryptos, where Bitcoin is trading at US$47,100 at 8:00am AEST this morning, fromUS$46,800 on Wednesday.

Ethereum (ETH) – something else Cathie Wood is bullish on besides Bitcoin – is closely following Bitcoin’s chart pattern, as usual, and is also up roughly 3% per cent, changing hands for US$3,497.

ASX 200 to open lower on Thursday

The ASX 200 looks set to open lower his morning, with futures markets (September contracts) pointing down by 0.87% at 8:30am AEST.

Yesterday, the Aussie benchmark retreated 0.27% to close at 7,417 points, with the Energy sector losing 2.2%.

On the IPO front, iron ore play Pearl Gull Iron (ASX:PLG) is scheduled to list today, after raising $4m from investors at 20c.

Jobs data for August will be released at 11:30am AEST, with the economy expected to take a hit from the Delta variant which will see the unemployment rate rise back towards 5%.

5 ASX small caps to watch today

Pointsbet (ASX:PBH)
The sports betting company has entered into an agreement with Austin FC, a Major League Soccer Club based in Texas. Austin FC has appointed Pointsbet as its exclusive sports book partner. Under the deal, PointsBet will receive permanent onsite recognition at Austin FC’s new Q2 Stadium, as well as earning full usage of Austin FC IP, marks, and logos.

DigitalX Ltd (ASX:DCC)
The company will acquire 100% of Sell My Shares, a market leader in online share execution services. DigitalX will pay an upfront consideration of $1.64m, plus a deferred consideration of $250k subject to certain performance milestones. DCC says Sell My Shares will be integrated with, and accelerate the commercial development of its Drawbridge product.

Twenty Seven Co (ASX:TSC)
A recent review of sample data has highlighted new lithium and tin targets at TSC’s 100% owned Trident Project in NSW. Historical geochemical sampling results showed encouraging rock chip samples which include : Triumph Mine: 7.63% Li2O, and Lady Don Mine: 4.45% Li2O.

Black Cat Syndicate (ASX:BC8)
Infill and extensional diamond drilling at BC8’s Kal East Gold Project showed promising results, which included: 1.57m @ 8.93 g/t Au from 287.15m, and 4.31m @ 5.51g/t Au from 354.03m.

Kalium Lakes (ASX:KLL)
The company’s Beyondie Sulphate of Potash Project has now entered the final phases of commissioning, with the completion of plant construction. Kalium says commencement of production ramp-up remains on track for October.