ASX 200 futures down by -0.2pc on Monday morning
European markets hit by far-right party wins, CAC 40 down -2.7pc
RBA to announce its rates decision on Tuesday
The ASX 200 is poised to track Wall Street lower when the market opens on Monday. At 8am AEST, the ASX200 futures contract was pointing down by -0.2%.
On Friday, the S&P 500 fell by -0.05%, the blue chips Dow Jones index was down by -0.15%, but the tech-heavy Nasdaq lifted by +0.12%.
Stock markets in Europe were hit harder after wins by far-right parties increased pressure on France’s president, causing investors to worry that this could weaken the European Union.
France’s CAC 40 index was down -2.7%, bringing its loss for the week to 6.2%, while, Germany’s DAX lost 1.4%.
Tesla shares fell by 2.5% after shareholders voted to reapprove CEO Elon Musk’s compensation package. Despite some resistance from major investors, 77% of the votes were in favour, according to the company.
Cruise liner Royal Caribbean’s stock fell -4.5% after Bank of America analysts noted that cruise prices in early June were a bit lower compared to early May.
Shopify rose by 5% after an analyst suggested the stock could rise by 16% from here. Mark Mahaney from Evercore ISI upgraded Shopify’s rating, saying the recent drop in its stock price has made it a good buy for investors.
Back home, Gillon McLachlan, the sports administrator who led the AFL for nearly a decade, has been named the new chief executive of Tabcorp (ASX:TAH).
Tabcorp says McLachlan has a strong track record of success, after more than doubling AFL revenues from $502 million in 2013 to $1,063 million in 2023. He also expanded the AFL to 18 teams and started the AFLW competition.
RBA to make interest rates call
Meanwhile, the RBA is expected to maintain its key interest rate at a 12-year high on Tuesday to control rising consumer prices driven by a tight job market.
Economists surveyed by Bloomberg predict the RBA will keep the cash rate at 4.35% for the fifth consecutive meeting.
The decision will be announced at 2:30pm in Sydney, followed by a press conference with Governor Michele Bullock an hour later.
This meeting comes after the Federal Reserve’s recent decision, where Chair Jerome Powell indicated a cautious approach to easing monetary policy despite lower inflation.
Similarly, Bullock is likely to maintain a slightly cautious stance due to persistent consumer price pressures.
“Looking ahead, we think RBA rate cuts from early 2025 onwards strikes the balance between supporting growth and controlling inflation, thus helping mitigate the risk of recession,” said Carl Ang at MFS Investment.
Now read: Rise and Shine: Everything you need to know before the ASX opens
In other markets …
Gold price dropped by -0.06% to US$2,330.85an ounce.
Oil prices were flat, with Brent crude now trading at US$82.62 a barrel.
The benchmark 10-year US Treasury yield fell by a further 3 basis points (bond prices higher) to 4.22%.
The Aussie dollar was down by -0.3% to 66.16 cents.
The iron ore price rose by +0.2% to US$107.33 a tonne.
Bitcoin meanwhile lifted by +1% in the last 24 hours to US$66,627, while Ethereum was also up around +2% to US$3,636.
5 ASX small caps to watch today
Adavale Resources (ASX:ADD)
Adavale has applied for a large uranium project area east of Ceduna in South Australia. The four Exploration Licence Applications (ELAs) covering 2,446km2 were chosen after an extensive review of the region with a focus on known palaeochannel systems, in association with the geologically and regionally significant Hiltaba Suite granites. The Hiltaba Suite granites have been interpreted to be the source for the high-grade Yarranna deposit (850ppm to 3,550ppm U3O8) that sits within the Narlaby palaeochannel sequence. The ELAs will expand the company’s regional uranium focus in South Australia.
Lunnon Metals (ASX:LM8)
Recent drilling at Lady Herial has uncovered significant near-surface gold deposits, including intervals such as 3m at 14.8g/t, 1m at 10.31g/t, 3m at 5.99g/t, and 5m at 4.01g/t. Plans are underway for additional drilling to establish an initial Mineral Resource at the site.
M3 Mining (ASX:M3M)
M3M says 14 newly found historical sites show copper mineralisation, with some grab samples containing as much as 36.9% copper. These sites span 600m and have not been explored recently. Using pXRF, a 1.3-kilometer-long copper-in-soil anomaly surrounding the sites has been identified. This anomaly is located 3km southeast along the strike from the historic Victoria Copper Mine. Future exploration will focus on better defining this mineralised copper trend.
Sarytogan Graphite (ASX:SGA)
SGA reported that its process has produced Ultra-High Purity Fines (UHPF) as a valuable by-product used in advanced industries, commanding premium prices. These UHPF materials have shown excellent performance when used as an additive in lead acid batteries. Lead acid batteries are globally ubiquitous, supplying half of the world’s rechargeable power needs. Graphite used in this application sells for between US$12,000 and US$20,000 per ton in large quantities. The Pre-Feasibility Study is progressing as planned and is expected to be completed by September 2024.
Metallica Minerals (ASX:MLM)
Diatreme Resources (ASX:DRX) has announced that its takeover bid for Metallica is now unconditional. DRX is encouraging all remaining Metallica shareholders to promptly accept the offer. Currently, Diatreme holds a 57.34% stake in Metallica. The offer, which Diatreme considers its best and final, is set to close on June 25.
At Stockhead we tell it like it is. While Adavale Resources is a Stockhead advertiser, it did not sponsor this article.
The post Market Highlights: European markets hit hard, Tabcorp’s new CEO, and 5 small caps to watch today appeared first on Stockhead.
