Market Highlights: Crypto bank Silvergate on the brink, and 5 ASX small caps to watch today
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The ASX is poised to open higher on Friday, in line with New York. At 8am AEDT, the ASX 200 March futures contract was pointing up by 0.30%.
Overnight, all three major US indexes rallied by around 1% each as traders weighed economic news in both the US and Europe.
There was another strong print for the US labour market, with initial jobless claims edging lower from 192,000 to 190,000.
In Europe, inflation eased slightly to 8.5% in February, even as the ECB signalled that it would still hike rates.
Bonds continued their selloff after the reports, with US 10-year yields surging 7bp to 4.06%. The 2-year Treasury yield is 4.4bps higher to 4.92%, and seems destined to make a run at 5%.
“Rates will undoubtedly be higher for longer, but the risks of larger than quarter-point rises may be back on the table,” said Oanda analyst, Edward Moya.
“All eyes will be on Jerome Powell’s semi-annual monetary policy report to Congress,” he added.
In stock news, Tesla dropped 6% after an uninspiring four-hour Investor Day at its headquarters in Dallas.
Elon Musk did not reveal when the company will debut the much-awaited affordable EV, but his engineers did say that assembly costs at Tesla would be cut by half in future generations of cars.
Salesforce popped 11.5% on an earnings beat in Q4 that topped forecasts as activist shareholders pushed for a shake-up of the company’s execs.
Crypto bank Silvergate Capital crashed 57% after warning that it was evaluating its ability to survive following a deterioration in its capital position.
Youtube plans to add AI features for video creators as the AI arms race heats up. That sent the Google share price rising by 2% overnight.
President Biden is poised to exercise his first veto to protect ESG investment considerations in US pension funds. Earlier, Congress passed a resolution that would roll back a Department of Labor rule allowing retirement plans to consider ESG factors when selecting investments.
To other markets, oil prices rose half a per cent, while gold and Bitcoin traded flat. BTC is now trading at US$23,456.
“BTC has to be close to the bottom, so the strong job numbers might not have much follow through unless we have further signs the economy refuses to break,” said Moya.
MMA Offshore (ASX:MRM)
MRM has been awarded three contracts supporting offshore windfarm developments in Taiwan. The three contracts, with firm periods totalling 370 days, will increase the company’s contracted revenue by a total of approximately $30 million, and provide for additional potential revenue of approximately $15 million (from 180 days in additional option periods).
ELT has confirmed significant fluorite (CaF2, also known as fluorspar) mineralisation at its Cleveland Tin Project in Tasmania, based on follow-up assays from drill hole C2119 completed in its 2022 diamond drilling program, and metallurgical test work. CEO Joe David says the find confirms the company sits on a very special asset in Tasmania.
Incannex Healthcare (ASX:IHL)
Incannex has engaged Catalent for the development and cGMP manufacture of Incannex’s own psilocybin drug product. The psilocybin is designed for use in Incannex’s ongoing psilocybin-assisted psychotherapy “PsiGAD” clinical development program for generalised anxiety disorder, and for potential future commercial use or supply as a cGMP pharmaceutical grade product.
Enegex has executed a sale agreement with Caravel Minerals (ASX:CVV) in respect of tenement E70/5442 which comprises 82.4km2, located approximately 122km northeast from Perth. Enegex will retain 100% ownership of the remaining four tenements within the Walebing Project located to the immediate NNW of the Caravel Copper Project.
Yandal Resources (ASX:YRL)
Yandal has appointed highly regarded industry executive Eduard Eshuys as technical advisor on an initial two-year term to assist with exploration strategy. The company has appointed Chris Oorschot to the role of Exploration Manager effective immediately. Oorschot has a successful track record working in the WA gold sector.
At Stockhead we tell it like it is. While Incannex Healthcare is a Stockhead advertiser, it did not sponsor this article.