Market Highlights and 5 ASX Small Caps to watch on Thursday

Wall Street edges higher on thin trading

US stockmarket indexes were mixed overnight on thin trading volume, as the Dow Jones recorded its sixth straight day of gains.

The Dow finished 0.25% higher, the S&P 500 was up 0.14%, but tech heavy Nasdaq fell 0.1%.

Micron was the outperforming US stock, up by 4%, after rival Samsung said it was reducing memory chips production in China due to the spike in COVID-19.

In other markets, spot iron ore was down by 1%, while Brent crude was flat.

Bitcoin has dropped a further 1% to US$47,250 at 8am AEDT today.

The crypto coin is now trading below its 200-day moving average, a key indicator of resistance levels.

ASX 200 to open lower on Thursday

The ASX 200 looks set to open lower this morning, with futures markets (January contracts) pointing down by 0.1% at 8:30am AEDT.

Yesterday, the local index resumed trading after the Christmas break with a healthy gain of 1.2%, taking it to levels not seen since early September.

All sectors gained with the best being consumer staples which rose by almost 2%.

The national cabinet is set to meet today, where a decision on quarantine rules will be made.

No IPOs are expected on the ASX this week.

5 ASX small caps to watch today

Panoramic Resources (ASX:PAN)
First shipment from PAN’s Savannah Nickel Project departed Wyndham on 26 December for delivery to Jinchuan. A total of 10,865t of nickel-copper-cobalt concentrate at the required specifications was loaded, with a payment of US$14.8m expected on 3 Jan 2022.

Alderan Resources (ASX:AL8)
Alderan says future drilling at its Detroit Project in Utah will focus on the Drum Gold Mine, and the neighbouring Mizpah gold prospect. Alderan’s mapping, sampling and modelling indicate Drum and Mizpah have potential for leachable oxide, plus primary sulphide gold mineralisation.

Focus Minerals (ASX:FML)
Focus has successfully raised approximately $25.5 million (before costs) under an entitlement offer. Focus says the proceeds will be used to fund plans to resume gold mining operations at its Coolgardie Gold Project.

Sims Ltd (ASX:SGM)
The metal recycling company has agreed to sell a majority stake in Sims Municipal Recycling (SMR) of New York. Under the terms, Sims will sell 50.46% of SMR for US$45.4 million, and will hold two of the five SMR board seats.

Atomo Diagnostics (ASX:AT1)
Atomo has responded to a speeding ticket enquiry by the ASX, after its stock price rose 26% yesterday on no specific announcement. Atomo said the rally might be due to articles published in various media regarding rapid antigen tests. Stockhead has also published a similar article on Atomo here.