• The ASX will open higher on Tuesday as Wall Street advanced
  • JP Morgan believes the market is overbought
  • Expert recommends buying into semiconductors, energy, and Bitcoin

 

The ASX 200 is set to open higher on Tuesday as Wall Street advanced once again. At 8am AEST, the ASX 200 index futures was pointing up by +0.35%.

Overnight, the S&P 500 rose by 0.15%, the Dow Jones by 0.28% and tech heavy Nasdaq by 0.21%.

For the month of July, the S&P 500 was up 3% and JP Morgan analysts believe that it has been overbought.

“Equity valuations and multiples are not pricing a soft landing, but rather a continued expansion and simultaneous monetary easing,” JP Morgan wrote.

“With no interest rate cuts in sight, ongoing QT and our base case for macroeconomic slowdown, multiples appear too high,” said the note.

To stock news, Exxon Mobil climbed 3% as Bloomberg reported it was in talks with Tesla and Ford about supplying them with lithium.

SoFi Technologies, a US online bank, was the best performer, up 20% after raising its revenue guidance.

Meanwhile, key earnings reports to be released this week include those from Apple and Amazon on Thursday US time.

 

Buy semiconductors, energy, and Bitcoin – expert

deVere Group’s Nigel Green says he’s increasing his exposure to semiconductors, energy, and Bitcoin.

Green explained that semiconductors are the building blocks of modern tech, powering a wide range of devices and applications, including smartphones, automotive electronics, and AI devices.

“As the world becomes ever-more digitalised and interconnected, the demand for semiconductor components will grow exponentially.”

The second area which Green is actively increasing exposure to is energy.

“Investors are largely ignoring energy and prices are lower than almost any other sector – so already a huge advantage.

“I’m piling in now as I believe that as interest rates peak and the global economy turns a corner, which could be within a year or so, demand for energy will soar,” he said.

Finally, Green believes that Bitcoin will be one of the best performing asset classes of the decade, as people are increasingly seeing the value of a digital currency.

“This trend will increase as adoption picks up further and as confidence grows again in the global economy.”

 

In other markets …

Gold rose +0.30% to US$1,965.34 ahead of US manufacturing and labour market data.

Crude prices lifted by around +1%, with WTI now trading at US$81.73 a barrel. There are signs that oil prices could rise even higher.

“Record high demand and Saudi supply cuts have brought back deficits,” said Goldman Sachs analysts.

Iron ore 62% fe fell -0.2% to $US112.46 a tonne.

Bitcoin meanwhile was modestly higher by 0.12% in the last 24 hours to US$29,227.

The SEC had reportedly asked crypto exchange Coinbase to delist all coins except Bitcoin sometime in July.

Coinbase’s CEO Brian Armstrong claimed that SEC’s request came prior to the regulator’s lawsuit against the exchange on July 6.

“They came back to us, and they said . . . we believe every asset other than Bitcoin is a security,” Armstrong told FT.

“And, we said, well how are you coming to that conclusion, because that’s not our interpretation of the law. And they said, we’re not going to explain it to you, you need to delist every asset other than Bitcoin.”

 

5 ASX small caps to watch today

Harmoney Corp (ASX:HMY)
The non-bank lender reported record cash NPAT of $4.7 million and cash ROE of 9%. Group loan book grew 28% to $744 million with Australia representing 51% of total. Revenue grew 47% to $107 million driven by loan book growth.

Credit Corp (ASX:CCP)
For the full year FY23, Credit Corp reported 70% growth in lending segment NPAT. The company also reported 43% growth in the consumer loan book to a record gross closing balance of $358 million. CCP has guided the market to a solid FY24 US investment pipeline on improved pricing conditions.

iCetana (ASX:ICE)
The cyber tech company has appointed current chief operating officer Kevin Brown as new CEO effective today. Along with this, iCetana has mapped out an increased focus on revenue growth following the successful launch of its new V2 software product in Q4 FY23.

Winsome Resources (ASX:WR1)
Assays have been received from step-out drilling to the east and west of previous drilling at Adina Main, with results now available from regular spaced drilling of over 1km of the 3.1km of known mineralisation at Adina. Results include: 1.37% Li2O over 61.2m from 8.9m, and 1.98% Li2O over 35.4m from 251.2m.

Minbos Resources (ASX:MNB)
Minbos has signed a 60-year commercial lease for the site of the Capanda Green Ammonia Project, located in Malanje Province, Angola. The lease was signed at the concessional rate of US$300 and at the same concessional rate per annum (US$300).

 

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