Market Highlights and 5 ASX Small Caps to watch on Wednesday
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All three US benchmarks rallied overnight, along with the European sharemarkets as investors bought the dip.
The Dow Jones rose 1.62%, S&P 500 by 1.52%, while the Nasdaq rose by 1.57%.
The CBOE Volatility Index (VIX), which measures market volatility based on S&P 500 index options and is also called the “fear index”, plunged by 12%.
A falling VIX index usually suggests that market’s fears have subsided.
Meanwhile, Jeff Bezos has been launched into space on board his Blue Origin space rocket, and has landed back safely in the West Texas desert.
“Best day ever,” Bezos said after touchdown.
— Blue Origin (@blueorigin) July 20, 2021
To cryptos, where Bitcoin is falling again, and is currently trading at US$29,650 level at 8am AEST, from the US$30,800 level on Friday.
This was a level technical analysts have been saying for weeks was crucial to defend, lest the original cryptocurrency plunge back down to US$20,000 or so.
Following the action overnight, the ASX 200 looks set to open higher at the open this morning, with futures markets (September contracts) pointing up by 1.19% at 8:30am AEST.
On Tuesday, the Aussie share market fell for two consecutive days, down by 0.46%. Utilities and Mining were the worst performing sectors, while Healthcare and IT were the best.
Retailer Kogan (ASX:KGN) reported an increase of 52% in gross sales for FY21 above FY20, with gross profit also growing by more than 60%.
The IT solutions provider has won a $52 million managed services contract with the Environmental Protection Authority (EPA) of Victoria. Across the potential six-year term, the contract has an estimated base services revenue of approximately $8.8m per annum.
The company announced that results of its Phase 1 clinical trial of AMP945 have confirmed that AMP945 was safe and well tolerated at all doses tested, supporting its progression into later stages of clinical development in both cancer and fibrosis.
The company is set to advance its ESG strategy after being admitted to the Global Battery Alliance (GBA). Membership of the GBA will assist LIT in achieving its ESG objectives, which are designed to ensure an ethical and sustainable supply of energy metals to the battery industry.
The human resources tech company had a strong finish to Q4, with quarterly revenue of $686k for Q4, up 73% up from $398k in Q3. Its full year revenue of $1.4 million also exceeded expectations.
Gateway Mining (ASX:GML)
The company said new high-grade gold zone has been discovered between Montague-Boulder and the Northeast open pits at Gidgee. Assay results include: 3.0 metres @ 11.5g/t Au from 177m, and . 3.2 metres @ 5.0g/t Au from 314m.