Market Highlights: ASX set to rise 0.05%, Russia and Chinese stimulus put US tech stocks into the drink

ASX hedging for a flat open, following sour results on Wall Street and in Europe
US tech stocks saw another broad sell-off, with several of the majors down more than 3.0% overnight
Oil prices edged slightly higher as the market reacted to news of major uprising issues for Moscow

Local markets are set to open slightly higher when the action starts today – at 8:00am AEST, the ASX 200 Futures Index was pointing 0.05% higher.

A mixed session on Wall Street overnight after US tech stocks retreated again overnight, leaving the Dow flat (-0.04%), the S&P down 0.45% and the tech-heavy Nasdaq down 1.16%.

US tech shares were again the target of a broad sell-off, with many of the big names in the firing line including Nvidia, Alphabet and Meta Platforms losing more than 3% each.

EV maker Tesla took a 6% pounding, after Goldman Sachs downgraded the electric car maker, citing a “difficult pricing environment” and increased competition from Chinese rivals.

China finally got around to revealing the stimulus package that the markets had been whispering about for the past week or so, with the Ministry of Finance saying it’s set to pump a stonkingly large set of tax breaks and incentives, around US$72.5 billion worth, to kick start sales of New Energy Vehicles.

In Europe, markets closed slightly lower as the market looked back on a fairly dour week, with the FTSE100 and the Dax both down 0.11% by the close of the session.

Oil prices edged slightly higher, following a tumultuous weekend in Europe that saw an armed rebellion against Russian President Vladimir Putin by Yevgeny Prigozhin, head of the Wagner mercenary group, get within 200km of Moscow before calling off the attack.

Brent Crude prices rose +0.7% to $US74.33 per barrel, as the renewed trouble in Eastern Europe upset the energy markets there once more.

Meanwhile, gold firmed above three-month lows after banking its worst week since February, thanks to the worsening issues for Moscow.

SHARES TO WATCH TODAY

Ragnar Metals (ASX:RAG) jumped 35% yesterday on a huge tranche of news that included no less than five market-moving announcements in the space of 90 seconds, including snapping up four lithium and REE projects, while unloading the ‘Tullsta’ nickel assets to mining major BHP for $9.8m, while retaining a 1% smelter royalty, which BHP can buy for another $10m.

Ventia Services (ASX:VNT) secured a chunky five-year contract with the Department of Defence, expected to deliver revenue of approximately $393 million to Ventia over the next five years, with a possible contract extension of a further five years.

Encounter Resources (ASX:ENR) has material assay results incoming from its Aileron Project in the West Arunta in the coming days. The results are from RC holes which were drilled to a depth of 80-90 metres, which informed a deeper, and quietly extended, diamond drilling program, results of which are also due in the coming weeks.

TOYS’R’US (ASX:TOY) is expected to announce a $2 million financing facility this morning with global Toys “R” Us global licence owner Tru Kids Inc (TRUK), part of the company’s seven-step strategic plan announced to the market on 30 March this year.