AUS
NZ
UK
CA
USA
IND
Highlights
- The ASX is poised to reach new heights as the SPI ASX200 futures contract shows a 0.3% increase.
- Major market movements include mixed results on Wall Street, with the Dow Jones hitting a record high.
- Key developments in ASX small caps include significant contracts and promising drilling results.
On the final day of September, the Australian Securities Exchange (ASX) is set to make waves, with early indicators suggesting a possible record high. At 8 AM AEST, the SPI ASX200 futures contract showed a promising increase of 0.3%.
Despite a varied performance on Wall Street, where the S&P 500 fell by 0.13% while the Dow Jones index marked a record rise of 0.33%, investors reacted positively to the August Personal Consumption Expenditures (PCE) index. This inflation measure, favored by the U.S. Federal Reserve, indicated that price pressures are cooling, with a modest 0.1% rise month-over-month, coming in below Wall Street’s expectations.
PIMCO’s Tiffany Wilding expressed confidence in the Fed's position on inflation, suggesting that the current economic climate is favorable for equities.
Sector Highlights
Oil-related stocks are in focus following significant geopolitical developments, including Israel's airstrike on Hezbollah's leader in Beirut. Following this event, Brent crude traded 0.5% higher on Friday.
In the tech sector, Nvidia experienced a 2% decline amid concerns over a DOJ investigation involving a major customer, Super Micro Computer. Meanwhile, Intel's stock dipped slightly despite reports of securing US$8.5 billion in funding under the CHIPS Act.
In biotech, Cassava Sciences faced a setback, dropping over 10% due to a settlement with the U.S. SEC regarding misleading claims related to an Alzheimer’s clinical trial.
Conversely, Bristol Myers Squibb rose 1.5% after receiving FDA approval for its new schizophrenia drug, marking a significant advancement in treatment options for patients.
Investor Sentiment Shifts Toward U.S. Stocks
A recent survey by Bloomberg reveals that U.S. equities are expected to outperform government and corporate bonds for the remainder of the year. Approximately 60% of respondents believe that U.S. stocks will yield the best returns in the fourth quarter. This optimism is fueled by anticipated interest rate cuts from the Federal Reserve, which recently reduced its benchmark rate from a two-decade high.
The rally in Chinese stocks, driven by significant economic stimulus, further enhances positive market sentiment. Yung-Yu Ma from BMO Wealth Management indicated that a focus on risk assets and U.S. equity continues to be a strong theme among investors.
Small Caps to Watch on the ASX
EBR Systems (ASX:EBR)
The FDA has initiated a detailed review of EBR Systems’ Pre-Market Approval application for the WiSE CRT System. With $50 million in financing secured, EBR anticipates regulatory approval by Q1 2025 and aims for a market launch later that year.
Marmota (ASX:MEU)
Marmota reported promising results from its first reverse circulation drilling at Goolagong, discovering significant gold in 11 out of 15 holes, including grades up to 4.4 g/t. This confirms Goolagong as a noteworthy new gold discovery in South Australia.
RemSense Technologies (ASX:REM)
RemSense has secured a second contract with Chevron, expanding its collaboration in the U.S. This contract involves providing high-resolution photogrammetry scanning and is valued at approximately US$66,790, with completion expected by the end of November 2024.
Warriedar Resources (ASX:WA8)
Warriedar announced promising results from its diamond drilling program at Ricciardo, confirming a high-grade gold shoot at depth, with notable intersections of 13.7 metres at 3.27 g/t Au.
Alchemy Resources (ASX:ALY)
Alchemy has entered a joint venture with JOGMEC covering a promising area in the Roe Hills region for lithium exploration. JOGMEC can earn a 51% interest by investing $6 million by March 2029.
As the ASX prepares for a potentially record-breaking day, investor focus remains keenly attuned to these developments across sectors and individual companies.
