Market Highlights: Wall Street retreats, travel to boom again, and a new crypto exchange with a twist
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Australian shares are set to retreat at the open on Wednesday as Wall Street’s momentum faded on profit taking. At 8am AEST, the ASX 200 index futures was pointing down by -0.3%.
Overnight, US traders came back from a long weekend and were caught between the fear of missing out and a market that might be overheated.
The S&P 500 closed the day -0.47% lower, while the Nasdaq fell by -01.6%.
Investors are also on edge as Fed Chair Jerome Powell faces Congress later today (US time) to deliver his semi-annual report.
Oil stocks Exxon Mobil and Chevron were among the hardest falling heavyweight stocks, down over 2% each.
Electric vehicle rivals Rivian Automotive and Tesla rose over 5% each.
Paypal lifted 4% after investment company KKR (Kohlberg Kravis Roberts) agreed to buy out PayPal’s buy now, pay later (BNPL) loans in Europe, worth around 40 million euros.
Elsewhere, data shows that new US home construction has surged by the most since 2016 in May, which exceeded all estimates.
Boeing said airlines around the world will add 42,595 jets valued at about US$8 trillion over the next two decades.
This comes as India’s IndiGo Airlines placed a record-breaking order with Airbus for 500 aircrafts, as the company bet on a travel boom over the next decade.
“No one has ever ordered an order of this magnitude,” said IndiGo CEO, Pieter Elbers.
Saudi Arabia is also getting into the travel game, as the country’s Public Investment Fund launched Riyadh Air amid the race to meet resurgent demand for air travel after the end of Covid-19.
Crude oil prices fell another by -1.5% on disappointment with the size of cuts with China’s key lending rates.
Yesterday, the PBOC cuts its loan prime rate by 10bp, less than what analysts expected.
Gold price also fell -0.65% to US$1,937.50.
“Wall Street is still thinking that the Fed will only deliver one more quarter-point rate rise but no one wants to be long gold before what will likely be a shortened week of hawkish Fed speak,” said Oanda analyst, Edward Moya.
Bitcoin meanwhile rallied 5% in the last 24 hours to US$28,150, a new high for June.
A new crypto exchange backed by financial giants Charles Schwab, Fidelity Digital Assets and Citadel Securities has started trading.
EDX Markets has a different business model than other crypto exchanges in that it it doesn’t custody customers’ digital assets. Instead, users will have to go through financial intermediaries to buy and sell crypto assets, similar to how trades are executed on the NYSE or the Nasdaq.
“Regulators like the different approach, because they think it’s important that there’s separation between the exchange function and the broker dealer function,” CEO Jamil Nazarali told Coindesk.
Mitre Mining (ASX:MMC)
Numerous pegmatites and key lithium pathway indicators have been identified at the East Pilbara Project. In light of these strong results, Mitre is set to undertake extensive mapping and sampling. In addition, initial reviews of the Mt Alexander Lithium Project in WA show potential for the Manta and Jailbreak pegmatite fields held by St George Mining (ASX: SGQ) to extend onto Mitre’s tenure.
Oceana Lithium (ASX:OCN)
Multiple thick pegmatites have been intercepted in maiden scout drilling at the Bom Jesus de Baixo prospect, Solonópole Project, with individual intervals of up to 16m and combined intervals of up to 20m in one hole. Oceana senior exploration geologist James Abson said he was encouraged with the thickness of pegmatites intersected not just in the BJdB Pit area, but further east at BJdB Central and BJdB East areas.
Imagion Biosystems (ASX:IBX)
Imagion says its MagSense HER2 imaging agent Phase 1 study has achieved its enrolment target, and that the company has initiated its plans to close the study. The study has been instrumental in revealing that the company’s targeted nanoparticle technology has the potential to change how MRI can be used to specifically detect cancer.
Corazon Mining (ASX:CZN)
Global consulting group Stantec Consulting has been engaged to help secure environmental approval for re-commencement of mining at Corazon’s Lynn Lake Nickel Sulphide Mining Centre in Manitoba, Canada. The ultimate objective is to support the development of a mine plan for the Lynn Lake Project, and to guide Corazon through the environmental approvals process for a proposed new nickel-copper-cobalt sulphide mine at Lynn Lake.
Terrain Minerals (ASX:TMX)
Terrain has secured 100% ownership of historical copper mines next door to Cracow Gold Mine, Queensland. The company submitted tenement applications totalling ~2,500km2 of highly prospective ground. Included within this extensive tenement application package is at least two known historic copper mines as well as numerous copper and gold targets, first identified by Rio Tinto, Gold Fields and Newcrest.
At Stockhead we tell it like it is. While Oceana Lithium and Corazon Mining are Stockhead advertisers, they did not sponsor this article.