Market Highlights: Wall St rally, JP Morgan canned Ye, and 5 ASX small caps to watch on Tuesday
Link copied to
Local shares are set to rebound on Tuesday. At 8am AEST, the ASX 200 October futures contract was pointing up by 0.85%.
Wall St rallied overnight after the new UK chancellor Jeremy Hunt scrapped almost all of the mini budget tax cuts announced by his predecessor Kwasi Kwarteng.
Among the controversial measures to be reversed are plans to cut the basic rate of income tax from 20% to 19% from next April.
Hunt also drastically scaled back the government’s plan to cap rising energy prices for consumers – from two years of support to just six months (up to the end of April).
All UK assets – bonds, equities, the Pound – rallied after the announcement, with the FTSE 100 finishing higher by 1%.
Over in the US, stocks also rose (the S&P 500 by 2.65%, the Dow by 1.86% and Nasdaq by 3.43%) as yields softened and more encouraging US banks earnings were reported.
Bank of America gained 6% as its net interest income was boosted by rising interest rates over the quarter, beating estimates.
Bank of New York Mellon also lifted 5% as its net interest revenue spiked 44% to $926 million thanks to higher interest rates, also beating forecasts.
JP Morgan meanwhile had cut ties with rapper Kanye West (now Ye) who had his Twitter and Instagram accounts suspended over the weekend after he posted anti-Semitic messages.
— Bitcoin Magazine (@BitcoinMagazine) October 17, 2022
Tech was the best performing US sector overnight, with shares rising across the board. Apple was the best performer, up 6.5%.
Fox Corp share price meanwhile dropped 8% after announcing a plan to merge News Corp and Fox, recombining the two companies that Rupert Murdoch split apart nine years ago.
In other markets,
– Iron ore was down 2.5% to US$93.75 a tonne
– Gold was flat at US$US$1,649.80
– Brent crude was flat at US$91.84 a barrel
– Bitcoin rose 1% to US$19,511
– AUD rose slightly to US62.93c
The Japanese Yen is on the ropes against the US dollar, trading close to near all-time lows of 149 yen per dollar. Japan’s Ministry of Finance’s Masato Kanda said he will firmly respond to excessive FX moves.
China said it will delay its GDP data meant to be released today, with no explanation given.
In Australia, the release of the RBA board meeting minutes for October 4 will be scheduled today, along with a speech by RBA Deputy Governor Michelle Bullock.
NZ meanwhile will release its quarterly CPI.
Tyro Payments (ASX:TYR)
Tyro confirmed it has received approaches from several parties expressing interest in a potential acquisition, including that from Westpac. None of these approaches are sufficiently definite or advanced to warrant further disclosure at this time, Tyro said.
Harmoney Corp (ASX:HMY)
The fintech lender reported record loan originations in September, up 42% in Q1 FY22 vs pcp. Its loan book rose 9% from the last quarter to $635 million, and the company has reaffirmed its FY23 outlook, including growth in statutory Cash NPAT profitability.
Cooper Metals (ASX:CPM)
Cooper has finalised the acquisition of Ardmore Resources and as a result now owns 100% of EPM19125. This acquisition expands the Mt Isa East Copper-Gold Project within the highly prospective Mt Isa Inlier. EPM19125 is within the Mary Kathleen Domain, part of the Mt Isa Inlier highly prospective for copper-gold mineralisation and close to mines held by ASX-listed miners Aeris Resources and Carnaby Resources.
First production of metallurgical coal has been achieved at BBM (Bumi Barito Mineral) coking coal mine, which is owned 60% by Cokal. Metallurgical coal production will ramp up to 150Kt to 200Kt of saleable coal forecast by this calendar year. Production will increase to 1.6Mt of saleable coal in 2023, before reaching nameplate capacity of 2.0Mt saleable coal in 2024. First revenue from coal sales is anticipated by mid-November.
African Gold (ASX:A1G)
Recent exploration results from the Didievi Project have confirmed and extended known mineralisation at Blaffo Gueto and Pranoi in the Ivory Coast, and identified a number of potential high impact new discoveries with shallow high-grade intercepts. Results from recent exploration at Blaffo Gueto Prospect include: 10.0m at 123.0g/t gold from 66m.