Local markets tripped the green fantastic early this morning, before remembering that Wall Street wasn’t doing that any more.

At almost midday, the S&P/ASX200 was up just 7.3 points to 7,800.60.

 

We are shuffling sideways with some aplomb now.

The surprise here is how early buyers thought we might just keep extending the past big 4 sessions of banking gains, but the fun seems to have fallen out the bottom of US markets after a mixed and uncertain session of trade overnight.

On Tuesday, that meddling Fed President from Minneapolis (Neel Kashkari) warned everyone that the Fed may need to the price of money unchanged until 2025.

US markets are plotting a now 65% chance of a rate cut in September, way down on the drunk with positivity of earlier in the year, when CME’s FedWatch Tool has markets at near 90%.

As you well know, just like boating up the Thames, Rugby League or having occasional sex, equity trading is a game of momentum and right now traders are wondering where and when the next oar will dip into the water.

After clocking a one-month high this week, we’re basically looking for a catalyst.

As of lunchtime in Sydney, most ASX200 sectors were trading mildly in the green with Industrials, Healthcare, Real Estate, Energy and the consumer stocks doing okay.

The benchmark’s best on Wednesday morning –  PolyNovo (ASX:PNV) and Pinnacle Investment (ASX:PNI) up 6.8% and 5.8% respectively.

 

 

Over the past five days, the index has gained 3.05% and is currently 1.39% off of its 52-week high.

Gold held steady near US$2,310 per ounce on Wednesday, as investors anticipated new signals from several Fed officials due to speak this week, seeking clearer insights into the potential timeline for rate cuts.

Recouping after a tough day on Tuesdsay is Australia and New Zealand Banking Group (ASX:ANZ) which dropped nearly -0.8% after revealing a -4% profit slump for the six months to March 2024, and a -7% net interest income drop over the previous 12 months to March.

ANZ Group jumped 1.5% this morning thanks to a not awful note from Jardens, which bumped ANZ price target to $29 from $28.

 

NOT THE ASX

In April, China continued its trend of increasing gold reserves for the 18th consecutive month, adding 60,000 troy ounces and bringing its total to 72.80 million ounces, according to the World Gold Council.

This accumulation coincided with record high gold prices driven by the failure of US-led negotiations on a Gaza ceasefire, while Israeli forces just went and took control of the main border crossing in Rafah.

Also adding to gold’s tailwind – broader demand for the safe haven coupled with vigorous buying from central banks, including India.

European markets traded strongly clocking new one month highs, as markets reacted to a gaggle of earnings reports.

The Stoxx 600 index closed 1.15% with all sectors in the green. Financial services led gains, up 2.6%.

The major American indices ended mixed after muddled investors moved the US rates debate sideways to no great effect.

The Dow Jones Industrial Average has been well overshadowed by its punchier brethren so far in 2024, but overnight the index closed 0.08% higher, notable for being No. 5 of a consecutive winning streak for the Dow, and it’s best run since December.

The broader S&P500 also climbed 0.13% but the tech-heavy Nasdaq slid to a 0.1% fopa.

This is where t’others left it on Tuesday:

In US corporate action the defence-tech provider Palantir fell 15% on softer than expected earnings guidance. While weaker revenue thwacked Disney to the tune of 10%.

After the close, Reddit reported its maiden quarterly result without much incident.

Revenue exceeded expectations at US$243 million versus US$212.8mn anticipated, driven by a 48% year-on-year increase, mainly from a near 40% lift in ad revenue to $222.7mn.

Also winning is the fitness firm Peloton which jump roped some 15.5% on reports private equity wants in or all of what its got.

Coca-Cola – makers of Vanilla Coke – reported a decent bump in Q1 earnings per share (EPS) which jumped almost 20% to $17.33 compared to the previous year’s $16.20, with revenue rising to $1.5bn from $1.57bn.

Additionally, the company plans to buy back up to $3.1bn of its shares, in a bold show of strong free cash flow decent margins and probably high demand for the vanilla-y goodness of much sugar and caffeine.

Talking of hideous addictions – Apple unveiled a new AI-focused iPad Pro and a larger iPad Air, aiming to excite editor Peter Farquhar who likes flashing buttons and the smell of new qualcomm factory-made products.

APPL is probs desperate to wake up its dormant iPad market, which hasn’t had anything new to waste money on for almost… I dunno a few years?

I will say this, iPad revenue is doldrumming by Apple standards.

In that regard this was a very big event.

Heaps was invested into it, especially after the maudlin run of quarterly earnings which seemed to only highlight the weakness across several of its more reliable categories.

Still in Apple’s orchard at least is friend of the show Warren Buffett, with the Berkshire Hathaway brain still calling for Apple to be his largest investment – convinced apparently by the iPhone marker’s record US$110bn buyback program last week.

Was it worth it, Tim? Apple stock ended up 0.35% for the day.

Of the US sectors, the best in class were Materials and Utilities both up 1.15%.

The worst performers were Consumer Discretionary & Tech which both ended 0.55% lower.

Like the Marvel Cinematic Universe, or interest in the Australian arts industry, US Futures have lost momentum at lunchtime in Sydney…

Via Fox

 

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for 08 May [intraday]:

Swipe or scroll to reveal full table. Click headings to sort:

Wordpress Table Plugin

 

The winners table on Wednesday morning have been dominated by the casual 135% put on by Iceni Gold (ASX:ICL), following a closer look at its Christmas Gift prospect which has exposed… “multiple bonanza gold bearing quartz veinlets within a narrow, sheared basalt-interflow sediment contact.”

“Gold collected by prospectors from a crushed bulk sample of ore bearing rock, including the quartz veinlets
from the sample trench, has produced a 9.5oz gold doré bar.”

It’s a beautiful sentence if you’re into gold digging or no.

Previous high-grade rock chip assay results returned from the outcropping gold bearing veinlets included:

  • 18,207g/t Au
  • 18,179g/t Au
  • 16,776g/t Au
  • 16,659g/t Au
  • 14,780g/t Au

The company’s MD Wade Johnson told the ASX that the structure has now been exposed over a 20m strike length that is open and has advanced the geological model to provide a priority drill target.

“The shallow excavation and sampling activities at Christmas Gift exposing the rich gold bearing quartz veinlets
within the shear zone is an exciting development for the Company.”

Wade says the additional fieldwork has improved ICL’s knowledge of the host structure, and that’s also advanced how to further explore the Christmas Gift structure. He adds the hit also provides a geological model that will be applied willy-nilly across the entire  Everleigh Well area.

“The strike length of the structure is open, drill sites have been prepared and we are looking forward to commencing drilling shortly to evaluate the down dip extent of the structure and rapidly advance this priority target.”

Hey, Pure Foods Tasmania (ASX:PFT)  is up very nicely ahead of lunch after launching a cap raise for circa $2.2m million (before costs and expenses).

PFT says the main game is to fund working capital and new capital investments, in the wake of restructuring initiatives undertaken by the Company since late calendar 2023.

Chair Malcolm McAully says the funds will also be used to repay short term borrowings and finance ongoing due diligence on several acquisition
targets.

Via PFT

Now, I don’t want to do your work for you… hell, I don’t want to do Gregor’s work, but PFT is a fascinating little company and Peter’s from there.

Elsewhere today, Prominence Energy (ASX:PRM) has announced better than expected sampling results at the Djideli processing site in  Kazakhstan undertaken by Umine LLP (Umine), which is 20% owned by PRM.

The company says Umine has identified an opportunity to decontaminate and remediate the abandoned site and intends to collect, process and sell the uranium during the rehabilitation process.

Trinex Minerals (ASX:TX3) has inked a deal with ALX Resources Corporation (TSX-V: AL) to acquire up to a 75% interest in the Gibbons Creek Uranium Project in Northern Saskatchewan, Canada.

Hartshead Resources (ASX:HHR) says it has been notified by the North Sea transition Authority, as the regulatory body for oil and gas exploration in the UK, that it has been successful in winning 10 blocks in the recent UK 33rd Licensing Round.

HHR says the blocks all contain discovered hydrocarbons and present a range of re-development, development and appraisal opportunities.

 

ASX SMALL CAP LOSERS

Here are the most-worst performing ASX small cap stocks for 08 May [intraday]:

Swipe or scroll to reveal full table. Click headings to sort:

Wordpress Table Plugin

 

ICYMI – AM EDITION 

Trinex Minerals (ASX:TX3) has executed the definitive agreement with ALX Resources Corporation for the acquisition of up to 75% in the Gibbons Creek uranium project in Canada’s uranium-rich Athabasca Basin.

It has now secured the option to acquire an initial 51% interest in the 138km2 project with the potential to increase to a 75% stake.

Maiden drilling at the project has returned promising initial observations with preliminary results suggest the presence of high grade mineralisation in the target area identified from historical drilling.

 

At Stockhead, we tell it like it is. While Trinex Minerals is a Stockhead advertiser, it did not sponsor this article.

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