Market Highlights and 5 ASX Small Caps to watch on Tuesday
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US stock markets finished in mixed territories on Monday, with tech stocks being the main laggards.
The Dow Jones rose by 0.21%, but the S&P 500 fell by 0.28% and the tech heavy Nasdaq by 0.52%.
Increasing fears about inflation has brought the benchmark 10-year Treasury yield briefly back to the 1.5% level overnight.
This comes after US Fed Chairman Jerome Powell cautioned that causes of the recent rise in inflation may last longer than expected.
In other markets, global oil prices lifted by 2%, while the spot iron ore price jumped 7.7%.
Eurozone shares +0.2%
US shares -0.3% with Nasdaq -0.5% as last weeks more hawkish central bank shift continues to impact
US 10 yr yld +4bp to 1.49%
Oil +1.8% to $75.5
Gold flat at $1750.8
Iron ore +7.7% to $118.6
ASX futures -0.6%$A 0.7287 with $US index flat
— Shane Oliver (@ShaneOliverAMP) September 27, 2021
Meanwhile there are power outages across China, following the government’s curbs on carbon emissions. Ten publicly listed Chinese companies have told the Exchange their factories’ output have been affected.
To cryptos, where Bitcoin has fallen again to US$43,200 at 8:00am AEST this morning, from US$43,700 yesterday.
Some broader weakness continues to linger in the market following China’s ban on all forms of crypto trading and mining.
Meanwhile, an Aussie founded crypto betting company based out of Bali, BetU, is up 16x from ICO, and has seen its market cap surge to US$26.6m, making it the no.666 crypto on the Binance Smart Chain platform.
The ASX 200 looks set to open lower his morning, with futures markets (December contracts) pointing down by 0.57% at 8:30am AEST.
Yesterday, the ASX had a positive start to the week, even with a dip in red-hot uranium shares.
The ASX 200 finished 0.57% higher at 7,384 points, with Energy and Financials being the best sectors.
On the IPO front, there are three stocks that are expected to make their ASX debut today: lithium-sulphur battery technology developer Li-S Energy (ASX:LIS), base metals explorer Dalaroo Metals (ASX:DAL), and NSW gold explorer and developer Koonenberry Gold (ASX:KNB).
In big cap news this morning, Origin Energy (ASX:ORG) says that its 20% investment in UK-based Octopus Energy in May has returned almost 3x.
Octopus’ valuation has increased to GBP3 billion as a new investor, Generation Investment Management, acquired a 7% stake in the company.
Australian Clinical Labs (ASX:ACL)
The pathology services provider has upgraded its profit guidance from the IPO prospectus. The company says total revenue for the first half will now come in between $398.1 million and $414.0 million, vs the prospectus forecast of $307.4 million.
Lake Resources (ASX:LKE)
The lithium developer has received a letter of interest (LOI) from Export Development Canada to potentially work alongside UK Export Finance to support approximately 70% of the total finance required for Lake’s flagship Kachi Lithium Project. EDC has indicated the ability to provide direct lending to the project of up to US$100 million.
AD1 Holdings (ASX:AD1)
The recruitment tech company has won a contract with US-based HR.com, creating a pathway for its global expansion plans. Under the deal, HR will provide a mentoring program to its 1.9 million professional members worldwide using AD1’s Art of Mentoring platform.
Los Cerros (ASX:LCL)
The gold explorer says its step out drilling shows high grade gold zone at surface. Results include: 33.4m @ 2.51g/t Au from 2.6m including 14m @ 3.45g/t Au from 4m.
Boab Metals (ASX:BML)
The company says that the final assay results from its 75% owned Sorby Hills Lead-Silver-Zinc Project in WA have returned positive results including: 6m @ 5.37% Pb & 21g/t Ag from 50m.
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