More gains on the cards

After a solid day on Tuesday, local stocks look set to rise again this morning with futures markets pointing 0.6% higher.

US stocks had a solid session overnight, as all the major indexes climbed more than 1% led by the Nasdaq, which jumped by over 2%.

However, things soured slightly after the closing bell following the Q1 results for Netflix, which reported a decline in total subscribers for the first time in 10 years.

Shares in the tech giant got crushed in after-hours trade, which could weigh on sentiment when US markets reopen.

US stocks climbed in the face of another rise in bond yields, as Chicago Fed President Charles Evans said he expects US interest rates to climb to 2.25% – 2.5% by the end of this year.

The rising US rates outlook helped the US dollar index push further above the 100 level, after it pushed above that benchmark last week for the first time since May 2020.

Cryptocurrencies rose steadily in overnight trade with Bitcoin trading above US$41,000 earlier this morning.

5 ASX small caps to watch today

Kinetiko Energy (ASX:KKO)

The gas explorer announced a subscription investment from South African energy group Phefo Power, which the company said “substantially bolsters the Kinetiko Black Economic Empowerment (BEE) certification”. The ~$1m subscription will be accompanied by a 1 for 15 pro-rata renounceable rights issue to raise up to $3.1m, which KKO said will fund exploration costs for its shallow conventional gas and coal bed methane (CBM) opportunities in South Africa.

Petratherm (ASX:PTR)

PTR said a drilling program has uncovered a “major High-Value Rare Earth Discovery” at its Comet project in the Northern Gawler Craton, South Australia. Shallow drill testing on the top 3 metres of prospective clay formations revealed “impressive concentrations of high-value REEs which remain open at depth below and out into surrounding areas”, the company said.

Eagle Mountain Mining (ASX:EM2)

EM2 said expansion drilling has revealed more thick zones of copper at its Oracle Ridge project. The company said the timeline for its next JORC mineral resource estimate has now been brought forward to the September quarter, after previously flagging the December quarter.

Nearmap (NEA:ASX)

The digital mapping and aerial imaging company flagged momentum in its North American business, highlighting “US$2 million in incremental annual contract value (ACV) from its government portfolio in North America in a single quarter (Q3 FY22)”. The revenue was generated “across 31 U.S states and 2 provinces in Canada demonstrating the attractiveness, breadth and reach of Nearmap offering”, NEA said.

Altech Chemicals (ASX:ATC)

ATC said it’s achieved “outstanding results from a Preliminary Feasibility Study (PFS)” for the development of a 10,000tpa silicon/graphite alumina coating plant, in Saxony, Germany. 25% owned by ATC, the company and its German partner forecast a project net present value of US$507 million, with net cash of US$63 million per annum generated from operations from a capital investment of US$95m.