• The ASX is poised to open higher on Wednesday after a rally in New York
  • Oil prices higher as Saudi said OPEC+ wasn’t considering output increase
  • Crypto broker Genesis near bankcruptcy

The ASX is set to open higher on Wednesday after a broad rally in New York. At 8.30am AEDT, the ASX 200 Dec futures contract was pointing up by 0.65%.

Overnight, energy stocks paced Wall St higher by around 1% ahead of the Thanksgiving holiday.

Oil prices had earlier risen by around 1% after Saudi Arabia rejected reports that OPEC+ was considering increasing output on 4 December. In October, the Saudis said they would be cutting output by 2 million barrels a day to support prices.

“Oil prices will likely remain highly volatile over the next couple of weeks against this backdrop, with the EU embargo and potential price cap scheduled to start the day after the OPEC+ meeting on 4 December,” said OANDA analyst, Craig Erlam.

According to the OECD, we are in the biggest energy crisis since the oil crisis of the 1970s.

US stocks also rose broadly overnight as investors recalibrated the Fed’s rate hike path.

Comments from Fed officials over the last few days have indicated that rate hikes were still on the cards, but could be done at a moderated tempo.

Strong earnings from US retailers also lifted investor confidence.

Abercrombie & Fitch surged 21% and American Eagle jumped 18% after beating revenue forecasts, while Zoom fell 4% after issuing a weaker than expected revenue guidance.

Meanwhile, China’s Covid woes are raising fears of an economic fallout.

In the latest restrictions issued by the government, people are being asked to stay away from Shanghai’s financial centre starting from Nov 24 as the country grapples with 27,307 new Covid cases last Monday.

The iron ore price slumped 2% on the news to US$94.20 a tonne.

To cryptos, where Bitcoin gained almost 2% in the last 24 hours to US$16,108 as crypto broker Genesis warned of bankruptcy.

The troubled brokerage has US$2.8 billion in debt, and has spent the last few days seeking fresh capital.

Looking ahead today, the RBNZ will make its interest rates decision.

In Australia, the S&P Global purchasing managers’ index for November data will be released, along with skilled job vacancies data for October.

5 ASX small caps to watch today

Neuroscientific Biopharma (ASX:NSB)
Non-executive chairman Paul Rennie has been appointed as interim CEO of NeuroScientific effective immediately. Rennie will continue to act as chairman of the company whilst stepping into the interim CEO role. Yesterday, Paradigm Biopharma’s (ASX:PAR) board also appointed Rennie as an interim CEO after Marco Polizzi stepped down.

Serko (ASX:SRK)
Serko’s total income for the half rose 106% on pcp to $19.4 million. However the company reported a net loss of $19.7m, up 30% on pcp. Serko said it’s targeting a return to cashflow positive in FY25, while reaffirming its revenue guidance for FY23.

Talga Group (ASX:TLG)
Talga’s Vittangi Anode Project in Sweden has passed the European Investment Bank’s (EIB) preliminary screening for debt financing. Following substantial due diligence undertaken to date, including completed site visits, EIB has advanced the project to ‘Under Appraisal’ in preparation of a decision. EIB’s potential financing commitment will be up to EUR300m.

Alligator Energy (ASX:AGE)
Drilling has been completed in the Blackbush Deposit at the Samphire Uranium Project in South Australia. Alligator has found some of the highest uranium grades recorded to date at Samphire, including 1.04 metres at 2.02% (20,200ppm) pU3O8 from 70.4 metres.

Raiden Resources (ASX:RDN)
High-grade zones of Ni-Cu-PGE sulphide mineralisation were discovered at Mt Sholl drilling, including notable intercepts: 3.1m @ 1.69% Ni; 2.01% Cu; 2.79g/t 3E1; 568ppm Co and 10.37g/t Ag. Also, 0.3m @ 2.88% Ni; 0.61% Cu; 2.65g/t 3E; 1,340ppm Co; 4.30g/t Ag.