ASX to fall by 1pc when the market opens
Amazon reaches $2 trillion market cap for the first time
Aussie property market to remain strong in 2024
The ASX 200 is poised to fall sharply when the market opens on Thursday despite rallies in New York. At 8am AEST, the ASX200 futures contract was pointing down -1%.
Overnight the S&P 500 rose by 0.16%, the blue chips Dow Jones index was up by 0.04%, and the tech-heavy Nasdaq lifted by 0.49%.
Amazon jumped by 4% to hit the $2 trillion market cap for the very first time.
This comes after EV truck maker Rivian Automotive surged 23% following an announcement that Volkswagen plans to invest US$5 billion to establish a joint venture with the company. Amazon owns 17% of Rivian.
Chip maker Micron Technology tumbled -7% post-market after its projected revenue for the current quarter only just met with the market consensus.
Micron’s slump dragged down several chipmakers, including Nvidia Corp, which also fell -1.5% after hours.
“The [US] stock market is way too reliant on big tech — period and end of story,” aid David Bahnsen at The Bahnsen Group.
FedEX Corp’s shares surged by 15%, the largest single day gain for the company since 1986, buoyed by a strong quarterly earnings report.
Moderna Inc sank -11% following new data shows that the efficacy of its RSV (respiratory syncytial virus) vaccine significantly dropped in the second year and was inferior to that of competitor vaccines.
Meanwhile, after Wall Street’s close, the Fed Reserve announced that the largest US banks have successfully passed their annual stress tests, clearing the path for increased dividend payouts.
Aussie property to remain strong
Australia’s property market is poised to maintain its resilience throughout 2024, as indicated by the PropTrack Property Market Outlook Report.
The report, set for release later today, forecasts a potential increase in home prices by up to 5% by year-end, building on a 2.7% rise observed from January to May.
Key highlights from the report include projections that Australian home prices could see a cumulative increase of 5.9% for the financial year from July 2023 to May 2024, with expectations of further growth ranging from 2% to 5% over the next year.
Perth continues to lead with projected home price growth of 8% to 11% for FY25, following an impressive 18.9% rise over the financial year to date.
In Brisbane, Sydney and Melbourne, home prices are anticipated to rise between 3% and 6% in FY25, despite varying growth rates observed so far this financial year.
Adelaide is expected to experience a more moderate growth trajectory of 5% to 8% in FY25, following a notable 12.9% increase in property prices over FYTD.
The market’s robustness is underpinned by strong buyer demand, which has counterbalanced an increase in property listings and record-high interest rates – now at their highest in 12 years.
Looking ahead, anticipated Stage 3 tax cuts and potential interest rate reductions in FY25 are expected to sustain demand and potentially drive further price increases.
Now read: Aussie Property: Best profits in 15 years… unless you’re selling in Melbourne
Back to markets …
Gold price fell by around 1% to US$2,298.73 an ounce.
Oil prices traded flat, with Brent crude now trading at US$85.08 a barrel.
The benchmark 10-year US Treasury yield jumped by around 8 basis points (bond prices lower) to 4.33%.
The Aussie dollar was steady at 66.50 cents.
The iron ore price surged by over 3% to US$106.60 a tonne.
Bitcoin meanwhile tumbled -2% in the past 24 hours to US$60,903, while Ethereum fell -0.7% to US$3,385.
5 ASX small caps to watch today
Sheffield Resources (ASX:SFX)
Sheffield Resources Limited (ASX: SFX) has announced progress from its Thunderbird Mineral Sands Mine in WA for June. The mine extracted approximately 825,000 tonnes of ore during the month, contributing to a quarterly total of about 2,200,000 tonnes.
This output surpasses the operational assumptions outlined in the 2022 Bankable Feasibility Study by approximately 20%. In terms of production, the company generated approximately 55,000 tonnes of ilmenite concentrate and 13,000 tonnes of zircon concentrate.
It anticipates shipping around 90,000 tonnes of concentrates by the end of June. Additionally, Sheffield has allocated $7.5 million to Kimberley Mineral Sands (KMS) for working capital needs.
Ovanti (ASX: OVT)
Ovanti says its subsidiary, iSentric Sdn Bhd, secured a major contract with one of Malaysia’s top three commercial banks. While the bank’s identity remains confidential, iSentric will provide omnichannel communication services including SMS broadcast and digital marketing strategies.
This partnership is expected to generate approximately $4.8 million annually over the next three years. The contract spans various platforms, including SMS, WhatsApp, and social media, leveraging iSentric’s advanced technology capabilities.
Immutep (ASX:IMM)
Immutep has reported promising results from its study combining Efti with KEYTRUDA in first-line head and neck squamous cell carcinoma (1L HNSCC). Overall response rates exceeded those of KEYTRUDA monotherapy across all PD-L1 expression levels.
In patients with high PD-L1 expression (CPS >20), the combination achieved an overall response rate (ORR) of 31.0%, compared to 18.5% with KEYTRUDA alone in the randomized Cohort A. Notably, patients with negative PD-L1 expression (CPS <1, Cohort B) also showed improved response rates, with an ORR of 26.9% initially reported in April.
Encouraged by these top-line results, Immutep plans to engage with regulatory agencies to discuss next steps for 1L HNSCC treatment.
Bastion Minerals (ASX:BMO)
Bastion has confirmed high-grade rare earth elements (TREE+Y up to 8.3%) and significant concentrations of heavy and middle rare earth elements (HREE and MREE) at its Gyttorp property.
Lab assays also identified high-grade copper (up to 5.1%) associated with old mine workings. A ground magnetic survey is planned across the extensive 3 km trend before drilling starts.
The property hosts nearly 200 mineral occurrences, including magnetite-rich skarns, where high-grade REE have been confirmed. Ongoing efforts include analyzing historical drill cores for copper and REE potential.
Veem (ASX:VEE)
VEEM, known for its advanced marine propulsion and stabilisation systems across luxury motor yachts, fast ferries, and workboats, gas announced key leadership changes effective 1 July.
Trevor Raman, currently Chief Operating Officer, will step into the role of Chief Executive Officer. Concurrently, Tino Kapfumo, the current Finance Manager, will assume the responsibilities of Chief Financial Officer and Company Secretary.
Mark Miocevich will continue as Managing Director, while David Rich, the current CFO, will transition to Head of Corporate Development and retain his role as Company Secretary.
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