Market Highlights and 5 ASX Small Caps to watch on Tuesday

US and European stock markets rebound

Stock markets in the US and Europe bounced back overnight, as fears about the Omicron variant eased.

US top infectious disease doctor, Dr Anthony Faucci, told CNN: “So far it does not look like there’s a great degree of severity to the Omicron variant.”

BioNTech stocks plunged 18% and Moderna slumped slumped 13% on the back off these early reports.

But all three major US stock markets rebounded strongly from the falls on Friday.

The S&P500 bounced back by 0.93%, the Dow Jones index by 1.87%, and tech heavy Nasdaq by 0.93%.

Over in Europe, the Stoxx 600 rose 1.4%, and the Footsie by 1.54%.

Inflation has become a bigger concern now than the virus, and investors are anxiously waiting for the November US CPI data due out this Friday (US time).

Meanwhile, oil prices have risen after six consecutive weeks of losses, with Brent crude rising by 3% to to US$72.21 a barrel.

This came after the Saudis raised official selling prices for crude sold to Asia and the US.

Eurozone shares +1.4%
US shares +1.2%, Nasdaq +0.9% helped by more reports that Omicron cases have been mild
US 10 yr yld +10bp to 1.44%
Oil +5.4% to $69.8
Gold -0.3% to $1778.7
Iron ore +1.9% to $100.4
ASX futures +0.4%$A 0.7046 with $US index flat

— Shane Oliver (@ShaneOliverAMP) December 6, 2021

To cryptos, where Bitcoin is trading higher to around US$49,100 at 8am AEDT, from US$48,800 on Friday.

Stablecoin protocol Terra (Luna) and layer 1 smart contract platform Algorand are showing their resiliency amid the crypto-market carnage over the past few days.

Read more about that story here on Stockhead.

ASX 200 to open higher on Tuesday

The ASX 200 looks set to rise at the open this morning, with futures markets (December contracts) pointing up by 0.39% at 8:30am AEDT.

Yesterday, the local index closed 0.05% higher despite a big sell off in tech.

Tech retreated 2.2% over inflation fears, but gains of over 1.9% in consumer staples and utilities were enough to drag the bourse higher.

The Reserve Bank will hold its monthly meeting today, with a key decision on interest rates high on the agenda.

The market expects the central bank to keep its 0.1% cash rate ahead of a two-month break (next RBA meeting will be in February 2022).

Other economics date due for release today are: the weekly consumer confidence, property prices index for the September quarter, and the CBA household spending for November.

And according to the ASX, set to make their IPO debut listing today are:

American West Metals (ASX:AW1), an explorer that raised $15m at 20c.

RocketBoots Limited (ASX:ROC). This company has a software that captures machine learning data through the use of cameras and sensors. It then applies these data to business optimisation and loss reduction strategies in industries such as consumer retail and banking. ROC raised $4.25m at 20c.

5 ASX small caps to watch today

Strategic Elements (ASX:SOR)
A patent filed over the Nanocube Memory Ink technology has been granted in Japan. The patent family is held by SOR’s 100% owned subsidiary, Australian Advanced Materials (AAA). AAA is currently developing printable computer memory and printable battery technologies with a team of global partners.

Mad Paws (ASX:MPA)
The pet services company says its quarter to date GMV (gross merchant value) is $15.7 million, an increase of 92% from November 20. This has resulted in year-to-date operating revenue of $2.4 million, up 215% on the prior corresponding period.

SenSen Networks (ASX:SNS)
The smart city tech company has been awarded a contract by the Sunshine Coast Regional Council to deploy its sensor AI enforcement solutions. Under the deal, SenSen will earn ~$280K over the 36-month period of the initial contract, commencing in January 2022.

Veris Ltd (ASX:VRS)
Global firm Shell has awarded a new Private 4G LTE network contract to Aqura Technologies, VRS’ 100% owned subsidiary. The contract is worth $1.3 million, and will see Aqura supporting Shell’s Australian operations by undertaking validation and support of the Private LTE network.

SRG Global (ASX:SRG)
SRG has secured a specialist facades contract valued at ~$20m, as part of the $1 billion Festival Tower development in the Adelaide CBD. Under the deal, SRG will design, supply and install specialist engineered curtain wall facades at the Festival Square development.