Market Highlights and 5 ASX Small Caps to watch on Tuesday

Global equity selloff on China concerns

Stock markets in the US and Europe fell overnight, on concerns of a potential property bust in China from the pending collapse of mainland property developer, Evergrande.

There were sharp falls in US stocks, with the Dow Jones falling by 1.78%, S&P500 by 1.70%, and the tech heavy Nasdaq by 2.19%.

Overnight, the Dow Jones index fell by 614 points or 1.8%, its biggest one day drop since July 19. The S&P 500 index lost 1.7%, its worst daily performance since May 12. And the Nasdaq index shed 330 points or 2.2%. #ausbiz #ausecon #commsec

— CommSec (@CommSec) September 20, 2021

In Europe, the story was similar with the European Stoxx 600 index down by 1.7%.

The world’s largest construction equipment maker, Caterpillar Inc, fell by 4.5%, and is down almost 10% for the month.

The sentiment has also spread to other markets, with spot iron ore dropping another 6.7% to US$94.00.

Oil prices were down by 2%, and base metal prices such as copper (-2.8%), zinc (-2.5%) also falling across the board.

Investors are also anxiously awaiting the US Fed decision on rates to be announced on Wednesday (US time).

To cryptos, where Bitcoin is also falling hard to trade at US$43,800 at 8:00am AEST this morning, from US$47,4000 yesterday.

“This is a risk-off move,” City Index analyst Tony Sycamore told Ausbiz TV this afternoon. “We’ve got the third leg of a correction playing out currently.”

ASX 200 to open lower on Tuesday

The ASX 200 looks set to open sharply lower his morning, with futures markets (December contracts) pointing down by 1.4% at 8:30am AEST.

Yesterday, the Aussie benchmark had its worst day since February and falling by 2.1%.

The Mining sector was the worst performer, down by almost 4% as iron ore prices continue to fall.

Later today, the RBA meeting minutes will be released.

5 ASX small caps to watch today

Intelicare (ASX:ICR)
The aged care software company has won a contract with St John of God Healthcare. Under the deal, ICR will supply its assistive living technology to help National Disability Insurance Scheme clients at St John. The contract value is estimated at over $80k in the first year, with further potential recurring fees.

Anson Resources (ASX:ASN)
The company has completed Stage 2 of its uranium and vanadium exploration program at its 100% owned Yellow Cat Project in Utah. High grade assay values of up to 87,600 ppm uranium (10.33% U3O8) and 143,500 ppm vanadium (25.61% V2O5) were reported.

BNK Banking Corp (ASX:BBC)
Following the receipt of several unsolicited approaches from interested parties, the bank says it’s undertaking a strategic review with the objective of further maximising shareholder value. The bank says there are no assurances that the Board will decide to pursue any transaction as a result of this review.

Vango Mining (ASX:VAN)
The explorer announced high-grade gold intersections from drilling at the Skyhawk open-pit at the company’s flagship Marymia Gold Project in WA. Results include 16m @ 4.4 g/t Au, and 6m @ 8.2 g/t Au.

Castle Minerals (ASX:CDT)
The company says that graphite flake characterisation test work at its Kambale graphite project in Ghana has achieved commercially acceptable graphite concentrate grades of up to 96.4% total carbon. It also achieved recoveries of 88% using a conventional grind and flotation concentration flowsheet.