• The ASX is set to open lower again today
  • Wall Street was weaker ahead of the July US CPI release
  • Earnings season continues on the ASX

Local shares are set to open lower again today. At 8am AEDT, the ASX 200 August futures is pointing down by 0.50%.

Overnight, Wall Street was weaker ahead of the US CPI release today (US time).

Experts are rooting for US inflation to ease in July, especially after the horror 9.1% reading in June, which came hot off the back to back 75bp hike rates by the Fed over the last two months.

Economists polled by Reuters see year-on-year headline inflation at 8.7% for July.

Money-market futures also show that traders are betting for 65% chance of another 75bp raise when the Fed meets again on September 20th.

In stock news, after Nvidia missed its Q2 estimates yesterday, chipmaker Micron Tech has also cut its Q4 revenue forecast. These announcements have painted a bleak picture for the tech sector for the next few quarters.

Meanwhile, Twitter founder and Block Inc CEO Jack Dorsey has created quite a stir over his tweet on China’s Covid lockdowns.

China’s lockdowns continue in certain parts despite only showing 650 new cases on August 8th, compared to its peak of 30,000 cases in April.

In other markets, oil prices were down slightly by 0.2%. Brent is now trading at US$96.37 a barrel. Iron ore futures did not trade yesterday due to Singapore holiday.

Back home, no major economic data is scheduled in Australia but according to Commsec, China will release its consumer and producer prices later today.

Earnings season continues for ASX large caps. Based on the AFR calendar, these companies will report their earnings today:

Alliance Aviation (ASX:AQZ), Centuria Capital (ASX:CNI),  Commonwealth Bank (ASX:CBA), Computershare (ASX:CPU) and Graincorp (ASX:GNC).

5 ASX small caps to watch today

88 Energy (ASX:88E)
A maiden Independent Prospective Resource estimate has been completed at Project Icewine East, showing 1.03 billion barrels of oil recoverable from 
multiple reservoir zones. Substantial oil volumes have balso een noted across all mapped play fairways. 88 Energy says it intends to drill an exploration well on the acreage in 2023.

Cirrus Networks (ASX:CNW)
The tech company reported a 2% decline in revenue for FY22, but it produced a record H2 revenue $60m, up 13.5% on the pcp. Following the strongest second half in the company’s history, Cirrus says it’s very well placed for continued growth through FY23.

Mayne Pharma (ASX:MYX)
Mayne will sell Metrics Contract Services for a cash consideration of US$475 million (~A$679 million). Mayne will receive approximately US$445 million (A$636 million) in net proceeds after transaction costs and restructuring cost. The company says the transaction strengthens Mayne’s balance sheet, and unlocks significant value for shareholders.

Genmin (ASX:GEN)
The African iron ore explorer has received 6-year extensions on both of its 100%-owned Baniaka and Bakoumba exploration licences located in Gabon, west Central Africa. The Baniaka iron ore project has a 700 million tonne JORC mineral resource. The Bakoumba iron ore project hosts 36km of iron mineralised strike, and represents regional exploration upside to Baniaka.

Godolphin Resources (ASX:GRL) and Orange Minerals NL (ASX:OMX)

OMX has made a $600,000 strategic investment in Godolphin through recent capital raising of $1.6m at 8.5 cents per share. Upon completion of the placement, Orange will have a ~6.8% shareholding in Godolphin. Godolphin has a number of exploration projects in the Lachlan Fold Belt in NSW including Lewis Ponds, Yeoval, Copper Hill East and Narraburra, a recently acquired rare earth minerals project.

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