Top 10 at 11: ASX follows European markets higher as Wall Street languishes

Morning, and welcome to Stockhead’s Top 10 (at 11… ish), highlighting the movers and shakers on the ASX in early-doors trading.

With the market opening at 10am sharp eastern time, the data is taken at 10:15, once trading kicks off in earnest.

In brief, this is what the markets have been up to this morning.

US dips, Europe surges

There’s been a distinct pattern of international markets decoupling from the fortunes of the US in recent months, with both the ASX and European bourses moving against Wall Street’s grain.

The same pattern has repeated today, with US markets faltering but European indices reaching nine-week highs.

Despite the downgrade of the US sovereign debt rating on Monday, US President Trump is in Capital Hill at present, attempting to drum up support for a massive tax cut that will mostly benefit America’s richest.

It will also add an estimated US$3-5 trillion to the US federal government’s debt, which is already sizeable (to say the least) at US$36.2 trillion.

A small slip in oil prices (-0.2%) drove US energy stocks lower on the S&P500, sliding 1%. Tech was also on the chopping block, down 0.45%.

Nvidia slipped 0.9%, Amazon 1%, Apple 0.92%, Meta 0.52% and Alphabet 1.5%. Tesla managed a 0.5% gain after Musk committed to still being CEO in five years.

The Dow slid 0.3%, the S&P500 0.4% and the Nasdaq 0.4%.

Europe was faring much better. Spain’s local market reached its highest trading point since 2008, while both Ireland and Germany touched on record highs.

Utilities led gains overall, up 1.8%. Technical products engineer Diploma jumped 15.11% after lifting revenue 14% year-on year, while British bakery chain Greggs increased total sales by 7.4% and lifted 9.15%

The FTSE300 added 0.8%, while the FTSE100 jumped 0.9%.

ASX follows Europe’s lead

The ASX is off to a great start this morning, lifting 0.53% as of about 10:30am AEST.

Utilities (+1.58%) and Energy (+1.53%) are leading gains, but Healthcare (+1.19%) is not far behind.

Only Industrials (-0.36%) is in the red at present, and the ASX All Ords Gold index is singing, up 4.16% on a recovering gold price and bullish market sentiment around the precious metal.

ASX200 Resources (+0.89%) and Banks (+0.82%) are also making sizeable gains.

The day is shaping up to be a positive one for the Aussie bourse.

WINNERS

In the news…

Bryah Resources (ASX:BYH) is flying on locking in the acquisition of the Golden Pike gold project in Canada. The project holds the Canadian equivalent of a JORC-compliant resource (NI 43-101) of about 66,000 ounces of gold.

Golden Pike has produced several bonanza-grade gold hits, up to 13m at 43.07 g/t gold and 10 metres at 32.36 g/t gold, as well as exceptional rock chip grades up to 244 g/t gold.

Bryah reckons Golden Pike has high potential to add value to its gold portfolio, in a stable, mining-friendly jurisdiction with plenty of opportunity to upgrade and increase the gold resource.

Oceana Lithium (ASX:OCN) is trading higher despite launching a share placement to raise $667,000 at a 21% discount to its 15-day VWAP.

The funds will go to developing the Solonopole lithium project in Brazil, and the Napperby project in Australia, hosted within the same province as Core Lithium’s (ASX:CXO) Finniss project.

Renergen (ASX:RLT) has reached an agreement with ASP Isotopes, a Nasdaq-listed company, to buy up all shares in RLT and acquire the company.

The two companies will combine to create a global critical minerals entity, seeking to enter emerging and growing markets including medical, semiconductors, green energy and space exploration sectors.

The new operation will form a vertically and horizontally integrated supply chain with customers and operations in the US, South Africa, the UK, Europe and the Middle East.

A 28-kilometre-long section of heavy mineral mineralisation has boosted Peak Minerals’ (ASX:PUA) shares, grading up to 3.1m at 8.4% heavy minerals and 6.8m at 2.8% HM. All 29 drill holes across the 28kms of strike hit mineralisation.

There appears to be a high rutile (natural titanium) content in the mineralisation, with the discovery hole grading at 63.2% rutile within the HM mineralisation. Assays are pending for another 319 holes.

Engineering, asset management and project delivery service provider Verbrec (ASX:VBC) has secured over $11 million in new engineering and construction contracts.

The company has inked $6.8m in contracts with Commonwealth Defence electrical and control system upgrade and maintenance projects, and a further $2.7m for projects involving water treatment and processing facilities in South Australia.

LAGGARDS

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.