ASX up after Jerome Powell\u2019s reassuring remarks on Fed policy
\nTech and bank stocks did well but Woolworths dragged
\nBlock Inc, parent company of Afterpay, faces a Department of Justice investigation<\/p>\n
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Aussie shares edged higher by 0.23% on Thursday after Jerome Powell\u2019s remarks overnight calmed global markets.<\/p>\n
The Fed Reserve had earlier kept the Fed Funds rate at the range of 5.25% \u2013 5.5% as per market expectations, but it was chairman Jerome Powell\u2019s words that got traders excited.<\/p>\n
Powell told the press post-FOMC meeting that another rate increase by the Fed is \u201cunlikely\u201d.<\/p>\n
\u201cI think we\u2019d need to see persuasive evidence that our policy stance is not sufficiently restrictive to bring inflation sustainably down to 2% over time. That\u2019s not what we think we\u2019re seeing,\u201d he said.<\/p>\n
However, he warned about sticky price pressures in the US economy.\u00a0<\/span><\/p>\n \u201cInflation is still too high. Further progress in bringing it down is not assured and the path forward is uncertain.\u201d<\/p>\n On the ASX today, Tech stocks led, followed by Banks, while Staples was dragged down by Woolworths (ASX:WOW)<\/a><\/strong>.<\/p>\n Source: MarketIndex<\/strong><\/em><\/p>\n \u00a0<\/p>\n Woolies\u2019 shares fell -4% as the retailer had a bit of a boost in its March quarter sales, up by 2.8% to $16.8 billion. But it wasn\u2019t quite what the analysts were expecting. Woolies mentioned that food prices pretty much stayed the same compared to last year during this quarter.<\/p>\n National Australia Bank (ASX:NAB)<\/a><\/strong> meanwhile pushed other bank stocks higher after its shares rose by +1.5%.\u00a0NAB has kept things steady with an 84\u00a2 per share interim dividend, and its profit for the first half of the year nudged up by 1.4% to $3.49 billion. The bank also said it was upping its share buyback by another $1.5 billion.<\/p>\n Elsewhere, gold diggers rallied while oil-related stocks fell after the WTI\u00a0 <\/span>dipped below the 200-day moving average,\u00a0<\/span>suggesting a potential downward shift in the long-term trend.\u00a0<\/span><\/p>\n Across the region, Asian stock markets mainly rose\u00a0 on the back of\u00a0<\/span>Fed Chair Powell\u2019s comments.<\/p>\n The US dollar fell against major currencies, with the Aussie dollar and Japanese Yen climbing by around +1% each against the greenback.<\/p>\n \u00a0<\/p>\n Meanwhile, news have surfaced in the last few hours that Afterpay\u2019s parent, Block Inc<\/strong>, would be facing a\u00a0Department of Justice\u00a0investigation.<\/p>\n According to reports,\u00a0 <\/span>there\u2019s some talk going on between federal prosecutors and a former employee regarding serious compliance issues at Cash App and Square that apparently go a long way back.\u00a0<\/span><\/p>\n The ex-employee has been spilling the beans, saying that Block\u2019s compliance section was a mess, and the folks in charge shouldn\u2019t have been there in the first place.<\/p>\n There are apparently documents showing that Cash App and Square haven\u2019t been gathering enough information from customers to properly assess risks.<\/p>\n There are also accusations of Square processing transactions involving countries under economic sanctions, and even Block handling cryptocurrency transactions for terror groups.<\/p>\n Block Inc (ASX:SQ2)<\/a> fell around -5% today.<\/p>\n \u00a0<\/p>\n Today\u2019s best performing small cap stocks:<\/strong><\/p>\n Swipe or scroll to reveal full table. Click headings to sort:<\/em><\/p>\n Code Name Price % Change Volume Market Cap LSR Lodestar Minerals 0.002 100% 865,705 $2,023,397 VPR Volt Power Group 0.002 50% 1,091,119 $10,716,208 KTA Krakatoa Resources 0.016 45% 39,942,102 $5,193,179 TRI Trivarx Ltd 0.035 35% 15,197,046 $8,800,446 HLX Helix Resources 0.004 33% 6,232,755 $6,969,438 NAE New Age Exploration 0.004 33% 5,288,000 $5,381,697 CUF Cufe Ltd 0.015 25% 2,698,228 $13,753,348 SEN Senetas Corporation 0.015 25% 1,047,419 $18,855,400 GBE Globe Metals &Mining 0.050 25% 710,866 $27,034,704 1AG Alterra Limited 0.005 25% 564,336 $3,448,586 BLZ Blaze Minerals Ltd 0.005 25% 888,835 $2,514,233 CAQ CAQ Holdings Ltd 0.010 25% 2,500 $5,742,290 SIH Sihayo Gold Limited 0.003 25% 7,137,238 $24,408,512 CR9 Corellares 0.021 24% 124,617 $7,906,571 ENV Enova Mining Limited 0.022 22% 23,075,896 $17,242,728 IRX Inhalerx Limited 0.039 22% 29,629 $6,072,543 HTG Harvest Tech Grp Ltd 0.023 21% 1,482,845 $15,425,299 RRR Revolverresources 0.096 20% 576,505 $20,769,941 BPH BPH Energy Ltd 0.025 19% 16,212,855 $23,048,512 M4M Macro Metals Limited 0.019 19% 15,859,653 $51,713,068 AHK Ark Mines Limited 0.165 18% 16,181 $7,762,498 PVT Pivotal Metals Ltd 0.020 18% 6,626,890 $11,970,011 WSI Weststar Industrial 0.135 17% 856,778 $12,738,002 CHW Chilwaminerals 0.450 17% 168,489 $17,661,875 RNT Rent.Com.Au Limited 0.035 17% 330,508 $18,889,487 <\/p>\n WordPress Table Plugin<\/a><\/p>\n Cracking the top of the small caps market on Thursday was critical minerals-hunting junior Krakatoa Resources (ASX:KTA)<\/a>, smashing through on news that the company has identified a promising new niobium-REE gravity target at the Mt Clere tenement, located in the northwestern margins of the Yilgarn Craton in Western Australia. It\u2019s an extensive, 40km long target catchment area with potential for alkaline intrusive systems including carbonatites, and the company says that infill soil sampling is underway, so we can expect further updates soon-ish.<\/p>\n Pivotal Metals (ASX:PVT)<\/a> is concentrating its efforts in Quebec, Canada, eschewing the usual trendy lithium search in that region in favour of copper, nickel, and PGMs.\u00a0First assay results from the first two of 34 diamond drill holes are back from its 100% owned Horden Lake project. It\u2019s hit some thick copper zones, with Cu-Ni-Au-PGM-Co mineralisation, including 37.5m at 1.31% Cu equivalent.<\/p>\n Vinyl Group (ASX:VNL)<\/a> was up on yesterday\u2019s news that that Songtradr has issued a conversion notice for a portion of its Tranche #2 convertible note, increasing its beneficial ownership in VNL to 19.95%. The company says that Songtradr will convert a principal balance of $1,629,351 into 77,588,162 ordinary shares in VNL at the conversion price of $0.021 per share, with Songtradr CEO Paul Wiltshire saying his company is \u201cvery impressed with the strategic progress and discipline Josh and the team at Vinyl Group have shown over the last year\u201d.<\/p>\n Meteoric Resources (ASX:MEI)<\/a> says it has entered into a non-binding MoU with Neo Performance Materials (TSX:NEO) for an offtake of 3,000 metric tonnes total rare earth oxide (TREO) per year from its Caldeira Project in Minas Gerais, Brazil, to supply Neo\u2019s magnet manufacturing plant. The deal allows a right of first refusal for Neo to purchase additional MREC (mixed rare earth carbonate) that Meteoric produces from the Caldeira Project in excess of 6,000 MT TREO per year, on similar terms.<\/p>\n Augustus Minerals (ASX:AUG)<\/a> has been granted a co-funded drilling grant of up to $110,000 for 2 x 700m deep diamond drill holes under the WA Government\u2019s Exploration Incentive Scheme (EIS) for the Minnie Springs prospect. The deeper diamond drill program is designed to test and to provide a 550m deep, 1km wide geological\/geochemical\/structural cross-section through the large 3km long by 1km wide copper moly porphyry system, linking the Mo mineralised leucogranite to the extensive Cu in soil anomaly to the northeast.<\/p>\n Insignia Financial (ASX:IFL<\/a>) says Funds Under Management and Administration (FUMA) increased by $11.7 billion (+3.9%) to $312.3 billion as at 31 March. Total net outflows for the quarter were $1.7 billion, largely reflecting the transitory impact of execution of wrap platform consolidation.<\/p>\n \u00a0<\/p>\n Today\u2019s best performing small cap stocks:<\/strong><\/p>\n Swipe or scroll to reveal full table. Click headings to sort<\/em><\/p>\n Code Name Price % Change Volume Market Cap MRD Mount Ridley Mines 0.001 -33% 875,024 $11,677,324 YPB YPB Group Ltd 0.002 -33% 1,366,667 $2,371,384 SGC Sacgasco Ltd 0.006 -31% 12,891,428 $6,237,497 ICG Inca Minerals Ltd 0.005 -29% 770,000 $5,633,172 EDE Eden Inv Ltd 0.002 -25% 275,729 $7,356,542 GCM Green Critical Min 0.003 -25% 117,005 $4,546,340 JAV Javelin Minerals Ltd 0.002 -25% 87,550 $4,352,462 LPD Lepidico Ltd 0.003 -25% 4,055,714 $30,553,232 BAP Bapcor Limited 4.370 -24% 10,274,381 $1,961,804,250 CAG Caperangeltd 0.098 -22% 501 $11,863,538 VRX VRX Silica Ltd 0.055 -21% 2,885,326 $40,836,498 MTB Mount Burgess Mining 0.002 -20% 7,143 $2,612,034 RML Resolution Minerals 0.002 -20% 1,151,076 $4,025,055 ROG Red Sky Energy. 0.004 -20% 13,093,682 $27,111,136 BCT Bluechiip Limited 0.007 -19% 500,000 $8,806,134 TOU Tlou Energy Ltd 0.035 -19% 31,523 $54,615,730 AU1 The Agency Group Aus 0.031 -18% 83,835 $16,285,910 MCL Mighty Craft Ltd 0.009 -18% 4,180,434 $4,016,454 SRK Strike Resources 0.058 -17% 2,507,122 $19,862,500 AKN Auking Mining Ltd 0.020 -17% 544,031 $5,648,489 AYT Austin Metals Ltd 0.005 -17% 137,006 $7,711,148 BFC Beston Global Ltd 0.005 -17% 2,176,026 $11,982,281 GGE Grand Gulf Energy 0.005 -17% 125,000 $12,571,482 NMR Native Mineral Res 0.020 -17% 286,908 $5,036,412 AER Aeeris Ltd 0.066 -15% 14,940 $5,695,081 <\/p>\n WordPress Table Plugin<\/a><\/p>\n \u00a0<\/p>\n Adavale Resources (ASX:ADD)<\/a> has completed maiden reconnaissance exploration<\/a> for uranium at its Mundowdna and Mundowdna South licences in South Australia ahead of schedule and under budget. Assays are currently pending.<\/p>\n Board members of Lithium Universe (ASX:LU7)<\/a> have visited various Chinese lithium refineries in Shangdong, Hubei and Sichuan provinces, gathering feedback on its process design. It added that the consensus among industry players indicates the current pricing represents the likely breakeven point to produce battery-grade lithium hydroxide and carbonate.<\/p>\n ADX Energy (ASX:ADX)<\/a> has received firm commitments from institutional and sophisticated investors for the subscription of shares worth a total of $13.5m under a two tranche placement.\u00a0The strong demand from offshore and domestic institutional investors and family offices endorses the company\u2019s growth opportunities in the heart of energy starved Europe.\u00a0Proceeds from the placement will be used to evaluate, analyse and production test the Welchau-1 gas condensate discovery as well as assessing its exploration prospectivity and potential deepening. Funds will also be used for the drilling of a gas exploration well in the ADX-AT-I licence, drill and tie-in the Anshof-2A sidetrack well, and for gas processing upgrades including a CO2 reduction plant at its Vienna Basin oil and gas fields.<\/p>\n Alvo Minerals (ASX:ALV)<\/a> has appointed Ore Investments chief executive officer and founder Mauro Barros as a non-executive director.\u00a0Ore Investments \u2013 a prominent Brazilian natural resources private equity group \u2013 had made a $4.2m investment into the company in April at a 25% premium, giving it a 19.9% stake in ALV and the right to nominate a non-executive director. Barros is a qualified lawyer with broad experience in mining and the capital markets in Brazil, which he will use to aid the company\u2019s exploration and development efforts at the Palma copper-zinc project as well as Bluebush and Ipora ionic clay-hosted rare earths projects in Brazil.<\/p>\n Hot Chili (ASX:HCH)<\/a> is raising up to $29.9m through a private placement of shares priced at $1 each, or a ~18.6% discount to the 10-day VWAP, to institutional, professional, and other investors. Proceeds from the placement will provide up to 18 months of funding for the ompletion of the Costa Fuego pre-feasibility study, completion of the water supply business case study, completion of the Costa Fuego environmental impact assessment, ongoing exploration, drilling and consolidation activities.\u00a0The placement will also improve HCH\u2019s trading liquidity on the TSX Venture Exchange.<\/p>\n \u00a0<\/p>\n Nope, not today.<\/p>\n \u00a0<\/p>\n At Stockhead, we tell it like it is. While ADX Energy, Alvo Minerals, Hot Chilli, Adavale Resources and Lithium Universe are Stockhead advertisers, they did not sponsor this article.<\/p>\n <\/span><\/p>\n The post Closing Bell: Tech stocks, banks lead the way; Afterpay\u2019s parent Block Inc in hot water after accusations<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"Block Inc in hot water<\/h2>\n
ASX SMALL CAP LEADERS<\/h2>\n
ASX SMALL CAP LAGGARDS<\/h2>\n
IN CASE YOU MISSED IT<\/h2>\n
TRADING HALTS<\/h2>\n