ASX to open lower despite a rally in New York
\nApple to appeal smartwatch ban in the US
\nMacquarie is bullish on small caps in 2024<\/p>\n
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Aussie shares are poised to open the last trading week of the year lower after a four-day long Christmas holiday weekend. At 8am AEDT, the ASX 200 index futures was pointing down by 3 points.<\/p>\n
In New York overnight, the S&P 500 rose by +0.42%, the blue chips Dow Jones index was up by +0.43%, and the tech-heavy Nasdaq lifted by +0.54%.<\/p>\n
The S&P 500<\/strong> is now just 1% shy of its January 2022 record high of 4,797 after posting eight consecutive weekly gains.<\/p>\n \u201cThe focus will quickly pivot to whether the market will be able to sustain its momentum into the New Year, and that may depend on how long the good vibes surrounding potential Fed rate cuts last,\u201d said Chris Larkin at E*Trade told Bloomberg.<\/p>\n To stocks, Apple<\/strong> fell -0.28% after appealing its US sales ban of smartwatches as the White House refused to veto a government tribunal.<\/p>\n Intel<\/strong> surged +5% on news that the company will be building a US$25 billion new manufacturing facility in Israel, with aUS $3.2 billion help from the Israeli government.<\/p>\n Meanwhile, buyers piled into Treasury bond sales<\/strong> on Tuesday, seeking to lock in higher yields as the market prices in Fed rate hikes in 2024.<\/p>\n \u00a0<\/p>\n Macquarie Asset Management(MAM)<\/strong> has released its 2024 market outlook report.<\/p>\n Analysts at MAM believe listed equities may face headwinds in 2024 from the more volatile economic backdrop, while bonds may become a worthwhile alternative again.<\/p>\n However, they also believe that the small cap end of the stock market could be ripe for buying,<\/p>\n \u201cWhile US large-cap stock valuations look stretched, opportunities may remain in small-caps and listed real assets,\u201d wrote MAM.<\/p>\n The next 12 months price-to-earnings (P\/E) ratios for small-cap stocks, says MAM, are at levels typically seen during a recession, while the largest-cap stocks are trading close to their all-time highs.<\/p>\n \u201cThis makes the valuation spread (the difference in multiple between the largest and smallest quintile) compelling, in our view,\u201d said MAM.<\/p>\n \u201cIn the 2002 and 2008 recessions, small-caps outperformed large-caps as the recession started, and also in the early phase of the recovery, creating an interesting asymmetry.<\/p>\n \u201cThe reason back then was similar to today: small-caps priced in recession risks earlier and more significantly.\u201d<\/p>\n Also, MAM says that investors have shied away from China amid the economic uncertainty and real estate market turmoil.<\/p>\n \u201cHowever, many of the risks are now well flagged and we may be close to the point of \u201cpeak pessimism\u201d, making China and emerging markets more broadly a potential opportunity, in our view,\u201d noted MAM.<\/p>\n \u00a0<\/p>\n Gold price<\/strong> rose by +0.7% to US$2,066.69 an ounce.<\/p>\n Oil prices<\/strong> was higher by 2%, with Brent now trading at US$80.78 a barrel.<\/p>\n The benchmark 10-year US Treasury yield<\/strong> was down 1 basis point (bond prices higher) to 3.90%.<\/p>\n Iron ore futures<\/strong> lifted +0.20% to US$135.75 a tonne.<\/p>\n The Aussie dollar<\/strong> climbed by +0.4% to US68.25c.<\/p>\n Meanwhile, Bitcoin<\/strong> was down -2.5% in the last 24 hours to US$42,290.<\/p>\n \u00a0<\/p>\n Delta Lithium (ASX:DLI)<\/a><\/strong> Opthea\u00a0(ASX:OPT)<\/a><\/strong> S2 Resources (ASX:S2R)<\/a><\/strong> Mamba Exploration (ASX:M24)<\/a><\/strong> Good Drinks (ASX:GDA)<\/a><\/strong> <\/span><\/p>\n The post Market Highlights: S&P 500 just 1pc shy of record highs, and Macquarie bullish on small caps in 2024<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"Macquarie bullish on small caps in 2024<\/h2>\n
In other markets \u2026<\/h2>\n
5 ASX small caps to watch today<\/h2>\n
\nDelta Lithium reported a maiden Mineral Resource Estimate (MRE) at the Yinnetharra Lithium Project, with a combined Inferred and Indicated Mineral Resource Estimate of: 25.7Mt @ 1.0% Li2O (at a 0.5% Li2O cut off), and 26% of the MRE in higher confidence Indicated category: 6.7Mt @ 1.0% Li2O. The addition of the Yinnetharra MRE takes Delta\u2019s combined Inferred and Indicated Lithium MRE to: 40.4Mt @ 1.1% Li2O (at a 0.5% Li2O).<\/p>\n
\nOpthea will receive the remaining US$35m of funding under the Development Funding Agreement (DFA) with Carlyle and its life science franchise Abingworth, as well as a further US$50m financing under an Amended DFA to include a new co-investor. This financing is non-dilutive to shareholders, with no equity issued to Carlyle, Abingworth or the new co-investor. The investments are driven by the potential of sozinibercept (OPT-302) as a treatment for wet AMD patients, which investors believe could provide a multi-billion dollar commercial opportunity.<\/p>\n
\nAssay results have been received for first two holes and top portion of third hole at Goornong prospect at S2R\u2019s 100% owned Greater Fosterville project. Results include: 1.7 metres at 4.5g\/t gold (SFVD0001), 0.5 metres at 5.3g\/t gold (SFVD0001), and 2.1 metres at 2.1g\/t gold (SFVD0002).<\/p>\n
\nA binding agreement was signed by Mamba to acquire up to a 75% interest in the Canary Uranium Project, located in the prolific Athabasca Basin, northern Saskatchewan, Canada. The Canary Project is 11km directly north of IsoEnergy Ltd\u2019s (TSX.V:ISO) Hurricane deposit and 6.5 km northwest of the mineralised Richardson Trend. The Project comprises two contiguous blocks, covering 73km2 with exploration targeting high-grade unconformity-related uranium mineralisation within Athabasca sandstones and underlying basement rocks.<\/p>\n
\nGood Drinks announced the opening of its flagship hospitality venue in Queensland, \u201cMatso\u2019s Sunshine Coast\u201d. The pub\u2019s renovation focussed on retaining its heritage while showcasing the Matso\u2019s brand. With a menu inspired by local ingredients and a relaxed setting including the front bar, main bar, restaurant, beer garden and pool room, GDA says Matso\u2019s Sunshine Coast is designed to cater to a large variety of customers.<\/p>\n