• The ASX is set to open higher on Monday
  • Wall Street rallied hard on Friday
  • Commodities are higher on softer US dollar 

Local shares are all set to open higher today. At 8am AEST, the ASX 200 September futures contract is pointing up by 1.15%.

Wall Street climbed strongly on Friday to end three straight weeks of decline – with the S&P 500 ahead by 1.5%, the Dow Jones by 1.1% and tech heavy Nasdaq by 2.1%.

Shares of e-signature company DocuSign soared 10.5% after reporting an earnings beat and a forecast upgrade.

US investors will be closely monitoring the US CPI data due tonight ahead of the FOMC meeting on 21st Sep.

The US Fed’s Waller and Bullard have made remarks supporting a significant September rate hike, and experts are unanimous on another 75bp move.

In the UK, the Bank of England delayed its monetary decision to September 22nd after the Queens’s death. Most had expected the BoE to hike its rates on Friday by 50bp to 2.25% – the highest level since December 2008.

Commodity prices surged as the US dollar has tentatively peaked.

In the oil market, crude prices were 4% higher on potential supply disruptions with Russian president Putin threatening to cut off more energy supplies as Ukraine recaptures territory.

Gold is also on the ascent as the USD’s historic run higher appears to have ebbed, the precious metal now going for US$1,717.70.

“Gold is finding a home above the $1700 level, and that could continue if investors continue to look beyond hawkish central bank speak. Gold’s fate could be determined after this next inflation report,”said OANDA analyst Edward Moya.

Elsewhere, base metals were also mostly higher on Friday on the back of a softer US dollar. Nickel, copper and iron ore all rose, the latter up strongly by 4% to US$103.65 a tonne.

To cryptos where Bitcoin has climbed back above US$21k, trading now at US$21,635.

Meanwhile, fantasy-action RPG Guild of Guardians already enjoyed a big rep within the crypto gaming world, but with backing from gaming-industry giant Ubisoft now stuffed in its quiver, the game looks to have levelled up.

You can read more about what that means for blockchain gaming here on Coinhead.

5 ASX small caps to watch today

Strategic Elements (ASX:SOR)
SOR’s subsidiary Stealth Technologies has signed an agreement with global software-industrial company Honeywell to progress the commercialisation of Autonomous Security Vehicles (ASVs) for perimeter security.  Stealth will engage exclusively with Honeywell for customers in the correctional, telecommunications and defence industries in Australia, New Zealand and elsewhere.

Synlait Milk (ASX:SM1)
Synlait says that its State Administration for Market Regulation (SAMR) licence in China has been successfully renewed. Synlait can continue to make its Chinese labelled 至初 Infant Formula until February 2023. In parallel, Synlait is working towards achieving its re-registration under the new GB (food safety legislation).

Korab Resources (ASX:KOR)
Korab says its exploration licence has been renewed until July 2024 and is eligible for further renewals. The licence covers 172 square kilometres and forms part of the Batchelor Project located some 70km south of Darwin, near the regional town of Batchelor.

M3 Mining (ASX:M3M)
A 5,000 – 10,000m maiden air-core drilling program has commenced at M3 Mining’s Edjudina Gold Project located NE of Kalgoorlie. The drilling will test extensions to known neighbouring mineralization and high priority anomalies identified by soil sampling and ground-based Sub-Audio Magnetic (SAM) surveys.

Belalarox (ASX:BRX)
New assay results from Phase One RC resource drilling have confirmed more high-grade zinc mineralisation at Belara. Results include: 10m at 3.80% Zn, 0.25% Cu, 1.26% Pb, 46.50g/t Ag and 0.49g/t Au from 203m.