• The ASX is set to open lower as Wall Street slid on fresh growth concerns
  • EU regulators gave a ruling on Meta ads
  • Brent crude slipped 4%


The ASX is set to open lower on Wednesday, tracking the selloff in New York. At 8am AEDT, the ASX 200 Dec futures contract was pointing down by 0.50%.

Overnight, tech stocks slumped on Wall Street amid fresh concerns of an economic downturn, with the Nasdaq and S&P 500 falling by around 2%.

Meta share price dropped 7% on an EU ruling over its targeted ads.

EU regulators said that Meta shouldn’t require users to agree to personalised ads based on their online activity, a ruling that could limit its ability to sell targeted ads.

Investors were edgy after warnings from bank chiefs of a potential recession in 2023.

JP Morgan CEO Jamie Dimon told CNBC that a mix of headwinds were likely to tip both the US and global economy into a “mild to hard” recession by middle of next year.

Goldman Sachs head David Solomon declared that we are facing uncertain times, that markets clients are reducing their risk, and that the rebound in “capital markets activity hasn’t happened yet.”

“This is not the moment to be paying big bonuses, then,” he told a US Financial Services Conference.

Meanwhile, it’s been a volatile start to the week in oil markets, continuing in much the same way we ended last.

Overnight, Brent crude fell 4% to below US$80 a barrel, the lowest level since before the Ukraine war, on growing concerns of global demand.

Russia has hit back at G7’s US$60 price cap by considering a price floor on its oil export. Deputy Russian PM Alexander Novak said that any anti-cap tool that Russia uses will be adopted by end of this year.

Gold was flat overnight to trade at US$1,769 an ounce, while iron ore rose marginally to US$109.70 a tonne.

Bitcoin traded sideways in the last 24 hours, changing hands now at US$16,965.

According to a Reuters report, Goldman Sachs is on the lookout for crypto firms with depressed valuations to snap up.

“This is a pretty typical modus operandi for a major player such as Goldman, and can perhaps give investors some comfort that they’re not the only ones prepared to wait out the crypto winter,” said eToro’s market analyst and crypto expert, Simon Peters.

Looking ahead to today’s session, Australian national accounts, which includes GDP data for the September quarter, will be released.

5 ASX small caps to watch today

Sovereign Metals (ASX:SVM)
Sovereign plans to demerge its standalone graphite projects (being the Nanzeka, Malingunde, Duwi and Mabuwa Projects) into a wholly owned subsidiary, NGX Limited, to be listed on the ASX through an IPO. Sovereign believes a demerger will unlock the value of the graphite projects for Sovereign shareholders, and separate its Kasiya Rutile Project and its standalone graphite projects into two distinct companies.

Adveritas (ASX:AV1)
Advertitas’ board has agreed to extend the term and remuneration of CEO Mathew Ratty. Under the new terms, Ratty’s services will be extended to 30 June 2025, and his annual remuneration has been increased to $350,000 per annum (plus superannuation). The board has also agreed, subject to shareholder approval, to issue 5,000,000 performance rights to Ratty.

Echo announced that its cloud-based screening platform for structural heart disease, the EchoSolv, has been launched to the US cardiology sector. EchoSolv was designed to support faster, more accurate detection of aortic stenosis. Echo says EchoSolv can operate with consistency, free from bias of patient gender, age and background.

Visioneering Tech (ASX:VTI)
VTI has reached 100% enrolment in its international randomised controlled clinical trial studying its NaturalVue Multifocal Contact Lenses in myopia progression control. The company expects to have interim 1-year data from the PROTECT Clinical Study in the fourth quarter of 2023.

Lunnon Metals (ASX:LM8)
Lunnon has updated its nickel Mineral Resource estimate (MRE) for the Baker deposit, its first discovery at the Kambalda Nickel Project (KNP). The new Baker MRE now stands at 929,000 tonnes @ 3.3% nickel for 30,800 contained nickel tonnes, comprising 638,000 tonnes @ 3.8% Ni for 24,000 nickel tonnes in Indicated Resource; and  291,000 tonnes @ 2.3% Ni for 6,800 nickel tonnes in Inferred Resource.