Wall street mainly down as Jerome Powell gets second term

US stocks encountered choppy trading overnight, as President Biden nominated Jerome Powell for a second four-year term as US Federal Reserve chairman.

Stock markets initially rose on the news but ended mostly down – the S&P 500 fell 0.32% , the Nasdaq by 1.26%, and Dow Jones was slightly higher by 0.05%.

US Treasury yields and USD rallied when the appointment was announced.

The market is pricing in a 0.25% US rate hike by June next year, but the prospect of higher rates so far hasn’t stopped the rally in US equity markets, which are currently outpacing the rest of the world.

In other markets, the spot iron ore price rallied by 4% after yesterday’s 5% rise. The ferrous metal is slowly climbing back to the US$100 level, and is now trading at $US95.63 a tonne.

Oil prices also rose by 1% after it emerged that OPEC+ could cancel its plan to raise production if countries release crude from their reserves.

Bitcoin has had a mini plunge overnight and is now trading at US$55,800 at 8am AEDT, from the US$58,100 level yesterday.

According to YouTuber and quantitative data analyst Benjamin Cowen, Bitcoin needs to finish the week with a close of at least US$59.3k to see likely further short-time upside.

Read the rest of that story here on Stockhead.

ASX 200 to dip on Tuesday

The ASX 200 looks set to open lower this morning, with futures markets (December contracts) pointing down by 0.16% at 8:30am AEDT.

Yesterday, the local index fell by 0.54%, as Energy stocks were hit by the continuing drop in oil prices, while Tech stocks were affected by continuing concerns over inflation.

Later today, consumer confidence index will be released, while RBA official Andrea Brischetto will make a speech.

According to the ASX, set to make its IPO debut today is RAS Technology (ASX:RTH), a provider of premium data, enhanced content and SaaS solutions to the global racing and wagering industries. The company raised $29m at $1.50.

In large cap news, Woodside Petroleum (ASX:WPL) and BHP (ASX:BHP) have signed off on one of Australia’s biggest resources projects in a decade, approving the US$12 billion Scarborough LNG project yesterday.

The announcement came as BHP and Woodside formalised their plans to merge BHP’s petroleum business with Woodside to create a $40 billion Australian oil and gas behemoth.

5 ASX small caps to watch today

Vection Technologies (ASX:VR1)
Vection has unveiled FrameS Metaverse release, introducing its autonomous 3D World content creation. The release contains self-contained immersive metaverses: enterprise focussed and dynamic 3D worlds where people can participate equally from anywhere in the world, the company said.

4D Medical (ASX:4DX)
The respiratory device company has completed the rollout of its XV LVAS software with I-MED, Australia’s largest diagnostic imaging provider. First revenues from I-MED are expected to be received following the installation at the initial clinic in December.

Proteomics (ASX:PIQ)
PIQ has signed a two-year distribution agreement with Apacor to bring its PromarkerD test for diabetic kidney disease to patients in England, Scotland and Wales. An estimated 4.8 million people or 7% of the British population live with diabetes, according to Diabetes UK.

CV Check (ASX:CV1)
The recruitment tech company has had a strong start to Q2, with an 81% increase in its October revenue to $2m. CV1 says the job market continues to grow across Australia and New Zealand, and will continue to do so in November.

Atomos (ASX:AMS)
The video equipment specialist has confirmed its FY22 guidance forecast of $95m, after reporting a first half revenue in excess of $40m despite supply chain issues.