Market Highlights and 5 ASX Small Caps to watch on Tuesday

Wall Street, Oil plunge on rising COVID cases

All three benchmark indices in the US tumbled on Monday, as coronaviruses continue to spike around the world.

The Dow Jones had its worst day this year, falling by 2.09%, S&P 500 by 1.59%, and tech-heavy Nasdaq by 1.06%.

Stocks related to reopening such as hotels, airlines, and banks all crashed by around 3%.

Global oil prices also slumped by 7% on increased OPEC supply and COVID-19 fears, while 10-year US treasury yields dropped 11 basis points to 1.19% as investors rushed to bonds.

To cryptos, where Bitcoin is dipping again, and is currently trading at US$30,800 level at 8am AEST, from the US$31,500 level on Friday.

Speaking to the AFR, Magellan’s billionaire co-founder Hamish Douglass slammed cryptocurrency as “one of the greatest mass delusions in modern history”, and that Bitcoin was going to zero.

ASX 200 set to open lower on Tuesday

Following the action overnight, the ASX 200 looks set to open much lower at the open this morning, with futures markets (September contracts) pointing down by 1.46% at 8:30am AEST.

On Monday, the benchmark index closed 0.85% lower, with all sectors down except for Health Care, and the worst performers being Energy and Mining, both falling by more than 2%.

In big cap news this morning, Afterpay (ASX:APT) has introduced ‘Money by Afterpay’, with the Australian launch slated for October.

The app will mark the debut of Afterpay’s collaboration with Westpac (ASX:WBC), ten months after it was first announced. Features of the app include interest rate of 1% p.a. on up to 15 different savings accounts.

5 ASX small caps to watch today

eRoad Ltd (ASX:ERD)
The telematics company has announced the opening of its NZ$16.1m share purchase plan (SPP). The SPP is part of eRoad’s capital raising to partially fund the proposed acquisition of Coretex, announced on 14 July. The SPP share price is yet to be determined, and ERD closed at $6.34 on Monday.

Mach7 (ASX:M7T)
The medical imaging specialist delivered a 95% sales order growth for FY21 to $25.6 million. Its annual recurring revenue (ARR) run rate is $13.4 million, which is up by 105% year on year.

EMVision (ASX:EMV)
Another medical imaging specialist, EM Vision, said the assembly of its 1st Gen device is on target and due to be completed next month. The 1st Gen device is the company’s first model intended for commercialisation, and is targeted for use in ICUs, stroke and neurology wards, angiogram suites and emergency departments.

Delta Drone (ASX:DLT)
The company’s mining specialist brand, Rocketmine, has secured a $120k deal for survey mapping, blast monitoring and inspection services with Rustenberg Platinum Mines, a wholly owned subsidiary of Anglo American Platinum, the world’s largest producer of platinum in South Africa.

Spirit Telecom (ASX:ST1)
The company’s unaudited year on year revenue grew by 200% to $104.5 million. Its second half revenue was $60.5 million, a 37% increase from the first half. Spirit is a telco company that provides internet, cloud solutions, and telephony services.