Market Highlights and 5 ASX Small Caps to watch on Wednesday
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All three US stock market indexes fell overnight, as US CPI rises at its slowest pace in six months.
The Dow Jones fell by 0.84%, S&P500 by 0.57%, and tech heavy Nasdaq by 0.45%.
US bank stocks fell after headline US consumer prices rose by 0.3% in August, its slowest pace in six months, signalling that inflation may have peaked. The core CPI gained only 0.1% to 4% year-on-year.
US investors are also concerned about a potential corporate tax hike from 21% to 26.5%, which is currently being mulled over by the House Democrats.
Apple stock lost 1% after showcasing its latest products at the Apple event; the lineup includes iPhone 13, Apple Watch 7, and Airpods 3.
Meanwhile, spot iron ore lost ground again last night by another 1.8%, and is now trading at US$120.35. Iron ore prices have now lost 50% since its record level in May.
Eurozone shares +0.1%
US shares -0.6%, Nasdaq -0.5%
US 10 yr yld -5bp to 1.28% with softer CPI inflation providing the Fed a breather
Oil +0.2% to $70.7
Gold +0.6% to $1804.1
Iron ore -1.8% to $120.4
ASX futures -0.5%$A 0.732 with $US index flat
— Shane Oliver (@ShaneOliverAMP) September 14, 2021
To cryptos, where Bitcoin has risen to US$46,800 at 8:00am AEST this morning, from US$45,000 on Tuesday.
Stockhead explains a new crypto platform called Avalanche, which has benefited from “layer one” high performance blockchains.
The ASX 200 looks set to open lower his morning, with futures markets (September contracts) pointing down by 0.11% at 8:30am AEST.
Yesterday, the Aussie benchmark rose by 0.16% to close at 7,437. The energy sector rose above the rest with a 4.45% gain mostly due to rising oil prices.
In the IPO market, scheduled to list at 1pm AEST today is explorer Copper Search (ASX:CUS), which raised ~$12m to hunt for big copper-gold deposits in South Australia’s Gawler Craton.
CUS is led by a bunch of former Extract Resources crew, including Peter McIntyre (CEO), Rance Dorrington (CFO), and Martin Spivey.
The company says that an airborne geophysics program is underway at its Skuterud, Vangrøfta and Undal Project areas in Norway. Shares in KNI are still trading above $2, a gain of more than 10x from its August listing price.
The company announced the approval of PoW (program of work) for its maiden drilling program at the Salmon Gums Gold Project in WA. The project is located along the strike of Pantoro Limited’s (ASX: PNR) Scotia gold discoveries.
The industrial services tech company announced that global decarbonisation investor Carbon Direct Capital Management has invested €15m for a 6.98% equity stake in Calix subsidiary, the LEILAC Group. Calix will continue to own the remaining 93% of LEILAC, which holds the exclusive license of Calix’s Low Emissions Intensity Lime and Cement.
The company has reported a significant upgrade to the JORC 2012 Mineral Resource Estimate (MRE) for its flagship Misima Gold Project in the PNG. The updated MRE has delivered a 39% increase in indicated gold ounces and 6% increase in total gold ounces.
Complii Fintech (ASX:CF1)
The financial planning software company will acquire 100% PrimaryMarkets Ltd, by way of a scrip off-market takeover. Both the boards of CF1 and PimaryMarkets have unanimously recommended the proposed transaction.