Bitcoin jumps over 5pc as China stimulus falls short. Picture via Getty Images
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The ASX is set to kick off on a positive note on Tuesday following some good vibes from Wall Street. At 8am AEST, the SPI ASX200 futures contract was pointing up by 0.5%.
Overnight, the S&P 500 notched fresh highs after rising by 0.77%. The blue chips Dow Jones lifted by 0.47%, and the tech heavy Nasdaq climbed by 0.87%.
Bitcoin shot up more than 5% to reach US$66,193, a peak we haven’t seen since September. Analysts reckon the jump was triggered by China’s underwhelming fiscal stimulus announcement.
“Markets are probably taking a disappointing China stimulus to be positive news for Bitcoin, as capital rotation from Bitcoin into Chinese equities was understood to be previously weighing on crypto prices,” said Caroline Mauron at Orbit Markets.
Nvidia rose 2.5%, nearing record highs after the company addressed investor concerns about product delays and its long-term growth prospects.
A report from Morgan Stanley suggested that analysts who met with Nvidia’s management found that Blackwell chip orders are booked out for 12 months ahead, suggesting the business remains strong with clear visibility moving forward. Nvidia is the second-best performer in the S&P 500 this year behind Vistra Corp.
Other semiconductor stocks also saw gains last night, including chip equipment manufacturer ASML, Arm Holdings, and Applied Materials. TMSC hit record highs.
Trump Media & Technology (DJT) soared 18% as investors bet on former President Donald Trump’s improved chances of winning the November election. Also, DJT announced the launch of its Truth+ TV streaming service, now available on Android, with an iOS version coming soon.
Boeing fell 1.3% as investors raised concerns about the ongoing job reductions and a strike entering its fifth week. On Friday, the company announced it would eliminate 17,000 positions, about 10% of its workforce.
Meanwhile, oil prices tumbled by 5% after OPEC lowered its forecasts for global demand, singling out concerns on the health of the Chinese economy, which is the world’s biggest crude importer.
However, Goldman Sachs has just upgraded its growth forecast for China, pointing to recent stimulus efforts.
The bank increased its full-year GDP projection for China to 4.9%, up from 4.7%, and raised its 2025 growth estimate to 4.7% from 4.3%. Beijing has previously stated its target for annual growth is “around 5%”.
Gold is on track to hit record highs in early 2025, according to Nigel Green, CEO of deVere Group.
Green points out that central banks are buying gold like never before, partly due to ongoing geopolitical tensions and a shift away from the US dollar.
“Gold buying has now surged to nearly three times the level it was before 2022,” he says.
With the US Federal Reserve moving towards cutting interest rates, gold is looking even more attractive.
“Higher interest rates make gold less appealing, but lower rates could draw investors back,” Green adds.
Countries like China, Turkey, and India are stocking up on gold to protect themselves against currency issues and potential sanctions.
And gold is proving to be a solid hedge in today’s messy geopolitical landscape.
“One scenario that could send gold prices soaring is an escalation in financial sanctions,” Green notes.
“If the momentum keeps up, we might see some all-time high prices for gold by early 2025.”
Gold price fell by 0.3% to US$2,648.40 an ounce.
Oil prices fell by 5%, with Brent crude now trading at US$75.39 a barrel.
The benchmark 10-year US Treasury yield traded flat at 4.10%.
The Aussie dollar fell by 0.4% to US67.28 cents.
Bitcoin surged by 5% in the last 24 hours to US$65,178, while Ethereum soared by 6% to US$2,633.
And iron ore climbed by 1% to $US107.50 a tonne.
Legend Mining (ASX:LEG)
Legend has successfully conducted its first High-Power Fixed Loop Electromagnetics (HPFLTEM) survey at the Magnus prospect, revealing four significant conductive zones. Zone 3 exhibits a large high-conductance area of up to 5,000 siemens, situated on the edge of a gravity anomaly beneath existing drilling sites.The company is awaiting a land access agreement with the Upurli Upirli Nguratja Aboriginal Corporation before proceeding. The survey, which included additional infill and extension lines, identified 12 conductors across the four zones. Zones 3 and 4 stand out as prime candidates for further investigation due to their size and geological significance.
EQ Resources (ASX:EQR)
EQR, a tungsten producer, has received $250k from Queensland’s METS Collaborative Project Fund to support advanced XRT ore sorting trials at the Wolfram Camp mine. This project, led by EQR in collaboration with Tomra Sorting and The University of Queensland, aims to enhance the efficiency of the mine’s redevelopment. The funding aligns with Queensland’s Critical Minerals Strategy, emphasising the importance of revitalising former mines to boost economic growth in the state.
AuMega Metals (ASX:AAM)
AuMEGA has completed a high-resolution airborne magnetic and Very Low Frequency Electromagnetic survey over the Bunker Hill Project, covering approximately 170 km² and 3,140 line-kilometres. Preliminary magnetic data has been received, with final results expected by the end of the year. The survey reveals significant geological complexity across Bunker Hill’s 25-kilometre strike length. Geological structures identified align with both recent and historic high-grade copper, gold, and silver samples.
Iceni Gold (ASX:ICL)
Iceni has announced further results from aircore drilling at the 14 Mile Well Gold Project, located between Leonora and Laverton. The latest assays have extended a coherent bedrock gold anomaly along the 15 km long Guyer Trend to a strike length of 6 km. Significant re-sampling results include multiple intersections near the granite-greenstone contact, suggesting a potential primary gold system. Highlights include 3m at 1.09 g/t Au, 2m at 1.93 g/t Au, and additional promising results from other drill holes. There remains 5 km of prospective contact yet to be tested.
Sierra Nevada Gold (ASX:SNX)
SNX has reported impressive results from its initial rock chip sampling at the historic Two Shovels Mine, part of the Blackhawk Epithermal Project in Nevada. One sample returned 5,180 g/t silver and 2.82% copper, while another yielded 384 g/t silver and 0.2% copper. Located on the edge of the Blackhawk Porphyry and Epithermal alteration system, Two Shovels expands the known footprint of these mineral systems. Although past work in the 1980s indicated high-grade silver and copper areas, there has been no follow-up drilling until now. The company plans to start a 1,500m reverse circulation drilling programme soon.
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