Month: October 2022

The A2 Milk Company Ltd (ASX: A2M) share price is slightly in the red this year but could now be the time to buy?

A2 Milk shares have shed 2.38% since market close on 31 December. In today’s trade, they are up 0.95% at the time of writing, fetching $5.32 apiece. For perspective, the S&P/ASX 200 (ASX: XJO) is up 1.2% so far today.

Let’s check the outlook for the A2 Milk share price.

What’s ahead?

The A2 Milk Company will be holding its AGM on Friday 18 November in Auckland, New Zealand. In FY22, the company reported a 42.3% lift in net profit after tax (NPAT) to $114.7 million. Group revenue jumped 19.8%.

The team at Bell Potter has recently maintained a buy rating on A2 Milk shares with a $6.60 price target. This represents a 24% upside on the current A2 Milk share price.

Bell Potter provided this outlook based on infant milk formula (IMF) data and the weak New Zealand dollar. Analysts said:

Total landed IMF volumes (traditional + bonded volumes) into China were up +22% YOY in Aug’22 and are up +14% YOY on a R3M basis. China landed volumes found a floor in Apr’22 and have been improving since.

In the near term directionally favourable YOY trends look to have returned to shipment indicators of IMF to China and the NZD weakness is creating a tailwind, given the majority of sales occur in AUD, USD and CNY.

Perpetual Equity Investment Company (ASX: PIC) also predicted “material upside” for the A2M share price following the company’s FY22 results.

However, Fairmont Equities managing director Michael Gable put a “hold” recommendation on A2 Milk shares in September. He highlighted the company’s strong result in FY22 but raised some concerns about market conditions. He said, cited by The Bull:

 …market conditions remain challenging due to increasing competition and a low birth rate in China.  Consequently, we view the company as currently trading around fair value. We retain a market weight rating.

Share price snapshot

The A2 Milk share price lost 19% in the past year, while it has fallen nearly 4% in the past month.

For perspective, the ASX 200 has lost more than 8% in the past year.

A2 Milk has a market capitalisation of nearly $4 billion based on the current share price.

The post Is the A2 Milk share price a buy ahead of next month’s AGM? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Top brokers name 3 ASX shares to buy today
• Broker tips A2 Milk share price to jump 20%
• What’s the outlook for A2 Milk shares in the second quarter?
• Why did the A2 Milk share price rocket 23% in the first quarter?
• How did the A2 Milk share price manage to beat the ASX 200 in September?

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/hprLnI2

It’s a good day to hold Novonix Ltd (ASX: NVX) stock, with the company’s share price rocketing 15% higher.

Its whopping gains come despite no news having been released by the S&P/ASX 200 Index (ASX: XJO) tech share. In fact, the market hasn’t heard any price-sensitive word from the battery technology and materials company since August.

Right now, the Novonix share price is $2.055, 14.8% higher than its previous close.

For comparison, the ASX 200 has lifted 1.29% at the time of writing.

So, what might be going right for the tech favourite? Let’s take a look.

What’s going on with the Novonix share price?

The Novonix share price is outperforming on Tuesday, coming in as the ASX 200’s best performer.

Its gain is slightly higher than the 14.6% surge posted by the Hub24 Ltd (ASX: HUB) share price. The financials stock revealed all the details of a record first quarter this morning.

Meanwhile, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is up 2.56% – making it the second best performing ASX 200 sector today. Its gain is slightly less than the 2.84% surge recorded by the S&P/ASX 200 Real Estate Index (ASX: XRE).

Of course, those invested in Novonix shares will likely be rejoicing at its latest lift. Particularly, as the stock hadn’t yet recovered from a disastrous September that saw it dump 27%.

Following that tumble, the tech share crashed to a 52-week low of $1.655 in early October. Yesterday saw it drop to $1.73 in intraday trade – its third lowest point of the last 12 months.

Much of the company’s recent suffering could be explained by Australia’s rising cash rate.

Rate hikes tend to up the stakes for growth shares, particularly those – like Novonix – that are yet to turn a profit.

Today’s gains included, the Novonix share price has fallen around 80% so far this year. It’s also lost approximately 60% since this time last year.

Meanwhile, the ASX 200 has fallen 11% year to date and 8% over the last 12 months.

The post Why is the Novonix share price rocketing 15% today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• The Novonix share price has just capped off a shocker first quarter. What’s next?
• Why did the Novonix share price crash 27% in September?
• Novonix share price shakes off losing streak to post second day of gains
• The Novonix share price sank to another 52-week low today. What’s been going so wrong?
• Here’s how ASX tech shares fared in September

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 Ltd. The Motley Fool Australia has positions in and has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/QIFwv9h

Although the S&P/ASX 200 Index (ASX: XJO) is having a very rosy day indeed this Tuesday, it doesn’t erase the awful year ASX shares have endured during 2022 thus far.

Typically, the ASX 200 Index has given investors an average return of around 8% per annum. That’s going off two decades of performance data from the SPDR S&P/ASX 200 Fund (ASX: STW). Yet this year so far, the ASX 200 has lost a painful 11%. And we’re still only in October.

Situations like the one we investors find ourselves in often prompt calls from value investors to ‘buy the dip’ and get shares on the cheap. That’s famously also the approach historically taken by the legendary investor Warren Buffett. So is now the right time to follow this advice and scoop up cheap ASX 200 shares?

Well, let’s see what one ASX broker reckons.

Broker: It’s time to buy cheap ASX 200 shares

According to reporting in the Australian Financial Review (AFR), broker UBS argues it’s a good time to pounce. This expert predicts the worries investors have been displaying over the year to date regarding rising interest rates and a possible recession are unfounded.

UBS is predicting the peak of the Reserve Bank of Australia’s (RBA) current tightening curve is almost upon us. As such, the current market downturn, according to the broker, is a great chance to pick up cheap ASX 200 shares.

UBS’s optimism comes from its own surveys. These predict household spending will remain resilient. That’s despite the recent run of RBA interest rate hikes.

Here’s some of what UBS strategist Richard Schellbach told the AFR:

Despite gloomy press headlines, and continued challenges from supply chain constraints, input cost pressures, and more recently labour market shortages, the reality is that the end demand which ASX businesses are seeing, continues to be undeniably firm…

The strength of the Australian economy, and resilience of its consumer, not just runs counter to many forecasts, but also runs against the slide we have seen in the cyclical sectors of the equity market.

Schellbach concluded by arguing that:

The share price moves seem overly pessimistic and present an opportunity to buy into some high-quality businesses with solid medium-term prospects.

No doubt these optimistic projections will be very welcome for ASX 200 investors today. But we shall have to wait and see what happens. If the last few years have taught investors anything, it is to expect the unexpected.

The post Is now the time to start buying cheap ASX 200 shares? Here’s what UBS says appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is ASX 200 lithium player Lake Resources profitable?
• The Telstra share price is still trading at less than half its record highs. Time to pounce?
• 3 ASX 200 lithium shares that turned a $10,000 investment into $500,000
• This is what will get ASX shares rising again early 2023: economist
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/rHntyJS

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is bouncing back from yesterday’s heavy decline. At the time of writing, the benchmark index is up 1.25% to 6,747.3 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Adbri Ltd (ASX: ABC)

The Adbri share price is down a further 4% to $1.38. Investors have been selling this building materials company’s shares since the release of a very disappointing trading update on Monday. That update reveals that higher costs are squeezing its profits in FY 2022. The company also announced the exit of its CEO.

Rio Tinto Limited (ASX: RIO)

The Rio Tinto share price is down over 1% to $93.06. The catalyst for this has been the release of a mixed quarterly update from the mining giant on Tuesday. Rio Tinto’s shipments and production fell short of consensus estimates across most commodities. For example, the company reported iron ore shipments of 82.9Mt, but the market was expecting shipments of 84.5Mt.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is down a massive 21% to 52.7 cents. This follows the release of the gold miner’s first quarter update, which revealed weaker than expected production and higher costs. This has led to St Barbara downgrading its full year production guidance and increasing its all-in sustaining cost guidance.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is down 2% to $10.57. Investors have been selling Whitehaven Coal and other coal miners on Tuesday. This may have been driven by news that China intends to increase its coal production. If this increases supply meaningfully, it could put downward pressure on the sky high prices that coal is commanding currently.

The post Why Adbri, Rio Tinto, St Barbara, and Whitehaven Coal shares are dropping today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why are shares in ASX 200 gold miner St Barbara crashing 22% today?
• Rio Tinto share price higher despite mixed Q3 update
• 5 things to watch on the ASX 200 on Tuesday
• Why Adbri, Costa, Hawsons Iron, and Medibank shares are sinking today
• Own Rio Tinto shares? Here’s what to expect from the mining giant’s Q3 update

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/89Y5k4R

The Bitcoin (CRYPTO: BTC) price is up 2% over the past 24 hours.

At the time of writing, the world’s original crypto is trading for US$19,571 (AU$31,104).

While the latest gains put BTC up 3% since this time last week, the Bitcoin price remains down 59% year to date.

Still, crypto investors appear unfazed by Monday’s network hiccup.

Bitcoin price sails through mining delay

The network hiccup in question was the 85 minutes it took to mine a block of Bitcoin yesterday.

According to CoinDesk (citing Mempool), that left 13,000 transactions pending while the two latest blocks in the blockchain were mined by Foundry USA and Luxor.

On most days transactions can go through in around 10 minutes. But the Bitcoin price looks to have been spared any sell-off from hiccup as these types of delays, while inconvenient for some users, aren’t all that unusual.

“A time between blocks of 85 minutes happens every 34 days or so,” tweeted Tadge Dryja, founder of the Lightning Network.

Cryptos lift on strong tech rally

Crypto investors have been more focused on the broader, though turbulent, rally in tech stocks than any sporadic mining delays.

The Bitcoin price has traded in close correlation, though often magnified, to the Nasdaq Composite Index (NASDAQ: .IXIC) this year.

And with some bullish data indicating US consumers are in a strong position despite the inflation and interest rate headaches, the tech-heavy Nasdaq Composite is up 2.8% over the past week. This was locked in by a 3.4% gain overnight.

The post How has the Bitcoin price responded to the network’s latest hiccup? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Crypto surges: Is now the time to buy Bitcoin and Ethereum?
• I’ve already made 158% on Bitcoin. Here’s why I keep holding
• Is Google now joining the crypto party following its latest move?
• Why is the Bitcoin price outperforming for Australian crypto investors?
• The Bitcoin price just tumbled back below US$20,000. What’s happening?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/e3MgkGu

It has been a day to forget for the St Barbara Ltd (ASX: SBM) share price.

On Tuesday afternoon, the gold miner’s shares are down a disappointing 22% to 52.2 cents.

Why is the St Barbara share price crashing?

Investors have been selling down the St Barbara share price on Tuesday after the gold miner released its first quarter update.

According to the release, St Barbara produced 63,700 ounces of gold during the quarter at an all-in sustaining cost (AISC) of $2,490 an ounce.

Compared to the fourth quarter, this means that St Barbara’s production was down almost 26% and its costs were up a massive 34.8%.

And with St Barbara commanding an average gold price of $2,486 per ounce, it was costing the company $4 per ounce more to produce the precious metal than it received for it. Ouch!

What happened?

Management advised that although the company’s Simberi and Atlantic operations performed in line with expectations, a slower than anticipated ramp up in underground mine equipment availability and utilisation impacted production at the Leonora operation (Gwalia mine).

In light of the above, St Barbara has been forced to downgrade its guidance for FY 2023.

The release reveals that the company now expects consolidated gold production of 260,000 to 290,000 ounces at an AISC of $2,250 to $2,500 per ounce.

This compares to its previous guidance of 280,000 to 315,000 ounce at an AISC of $2,050 to $2,150 per ounce.

In addition, management has decided to defer some of its capital expenditure plans for at least 12 months. This includes the planned Leonora Processing Plant expansion to 2.1Mtpa, refractory ore circuit upgrade at the Leonora Processing Plant, and the construction of the Aphrodite mine.

The Firetrail Australian Small Companies Fund recently described St Barbara as “one of the cheapest gold stocks globally.” It seems it was cheap for a reason.

The post Why are shares in ASX 200 gold miner St Barbara crashing 22% today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Why Dubber, Johns Lyng, Seek, and St Barbara shares are sinking today
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/voGiA4R

The iron ore price has been tumbling lately, so are BHP Group Ltd (ASX: BHP) shares still worth buying?

BHP shares are up 1.07% today, trading at $39.51 apiece at the time of writing. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 1.38% so far today.

Let’s check the outlook for BHP shares.

Iron ore prices fall amid China Covid-zero policy

BHP is a major iron ore producer. In fact, iron ore accounted for more than half of BHP’s total earnings in FY22. BHP also explores copper, potash, and coal, among other commodities.

The iron ore price closed down 1.55% overnight, fetching US$95 a tonne, Trading Economics data shows. It’s the lowest level since November last year. Iron ore was trading at around US$160 a tonne in March and for almost US$230 a tonne in May 2021.

Iron ore prices are continuing to fall amid news China is maintaining its COVID-19 zero strategy, curtailing the nation’s economic growth prospects. China is the largest iron ore importer in the world. In a research note, ANZ economist Felicity Emmett said:

China has reiterated it will adhere to its COVID policy, and things were further complicated by the recent surge in cases. Negative margins and production curbs to reduce air pollution are leaving more downside for steel production.

Meanwhile, Commonwealth Bank of Australia (ASX: CBA) analyst Vivek Dhar said China easing its COVID-19 policy would have been “potential salvation” for commodities, the Australian Financial Review reported.

However, despite the macro headwinds, some analysts have recently seen potential upside for the BHP share price.

Macquarie placed an outperform rating with a $45 price target on BHP shares in early October. Goldman Sachs also recently maintained a buy rating on BHP shares with a $40.50 price target. Meantime, Morgans has an add rating on BHP shares, however, the broker has cut its price target on the company’s shares to $47.40.

Share price snapshot

BHP shares have risen 13% in the past year, while they are up nearly 7% year to date.

For perspective, the ASX 200 has lost nearly 9% in the past 12 months.

BHP has a market capitalisation of more than $200 billion based on the current share price.

The post Is it wise to buy BHP shares amid falling iron ore prices? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why did the BHP share price melt down on Monday?
• Opportunities across the mining sector: Expert names ASX 200 shares to buy
• Top brokers name 3 ASX shares to buy next week
• If I’d invested $5,000 in these 5 ASX shares five years ago, here’s what I’d have now
• Do you want the good news or the bad news on the iron ore price?

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/bOe8nsx

ASX-listed Star Casino is persevering today, despite the company being strapped with a $100 million fine and license suspension.

To the surprise of many, the Star Entertainment Group Ltd (ASX: SGR) share price is 1.3% higher than where it finished yesterday. Then again, nearly 90% of the top 200 listed companies are in the green today following a rebound in US markets overnight.

For Star shareholders, answers to old questions have only created new ones. For instance, how will this large financial punishment impact the company? Does Star even have a lazy $100 million lying around in cash to foot the bill?

Let’s dive into the details.

Where will the money come from?

As previously covered, the NSW Independent Casino Commission handed down a $100 million fine to Star yesterday upon its determination.

This, in conjunction with the removal of its license, was the result of findings into the company failing to appropriately operate. Now the question on the lips of shareholders is: What’s next?

For starters, the ASX-listed Star Casino will need to find a hefty $100 million somewhere to pay for its wrongdoings. However, the company only held $82 million in cash and equivalents at the end of June 2022.

Notably, there is a considerable amount of debt already on the company’s balance sheet. At the end of FY22, Star had over $1.3 billion in interest-bearing liabilities. Furthermore, cash flows for the latest financial year were as follows:

• Cash flows from operating activities: $176.2 million
• Cash flows from investing activities: -$122 million
• Cash flows from financing activities: -$40.1 million

Overall, the ASX-listed Star Casino finished the full year with only $14.1 million worth of positive cash flow. This could mean shareholders will need to go even longer without dividends.

It seems Star might need to do one (or a combination of three things): raise capital/debt, cut back expenses, and/or increase income; in order to pay its fine.

CEO’s take on ASX-listed Star Casino

The recently appointed new CEO, Robbie Cooke, shared his thoughts following the outcome. As reported by The Australian, Cooke said:

The business is not broken. [But we need to show] that we are operating at the highest intergrity level.

There is a 100 per cent desire from the Star point of view that we want to get the business back to suitability. We are very determined to put in place systems and procedures that are necessary to do that.

On a positive note, Cooke will have the chance to redeem Star. A potential alternative outcome was the complete shutdown of the casino operator. Though, the NICC decided that such an option wouldn’t have been productive.

Star Casino has suffered on the ASX so far this year. The damage toll has reached nearly 30% on a year-to-date basis.

The post Does ASX 200-listed Star Casino have the cash for its $100 million fine? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Star Entertainment share price halted amid $100m fine and casino license suspension
• Here are the top 10 ASX 200 shares today
• Star Entertainment share price lifts on ‘significant and urgent remedial steps’
• Star Entertainment share price dips as acting CEO resigns

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/7U10IVF

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

The incredibly unpredictable price action seen in the cryptocurrency sector is once again in full focus today. In aggregate, the crypto market has moved meaningfully in tandem today, with the overall market rising a little more than 1.5% over the past 24 hours, as of 1:45 p.m. ET. 

That said, megacap tokens Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Cronos (CRYPTO: CRO) remain in focus for most investors, given the size and importance of these key blockchain projects. As of 1:45 p.m. ET, these three tokens surged 1.8%, 2.8%, and 4.4%, respectively, over the past 24 hours.

Interestingly, Bitcoin‘s move (which was the smallest of the three) follows an 85-minute window on Monday in which no blocks were produced. A difficulty adjustment appears to be tied to this issue, which raised eyebrows in the crypto world.

Other top tokens like Ethereum and Cronos have their own individual catalysts and headwinds. This week, it was announced that XRP is beginning to test a side chain compatible with Ethereum smart contracts. And Cronos has been benefiting from recent gaming-related updates, which have investors intrigued in this blockchain project’s growth potential.

That said, the potential for further interest rate hikes by the Federal Reserve continue to provide headwinds for all risk assets. This makes the price action in these top tokens even more difficult to understand. 

So what

There’s some very wonky thinking that appears to be taking hold in the markets right now. Given last week’s hotter-than-expected CPI and PPI prints, most investors initially took the view that this would lead to more rate hikes, which are bad for risk assets. Cryptos, equities, and bonds sold off immediately on the news.

However, the past few days have seen some bullish momentum return, as some appear to be taking the view that more rate hikes in the near term could lead to a recession in the medium term. Such a recession could result in lower interest rates sooner than expected.

This second-derivative sentiment appears to be at play once again today, with the majority of near-term catalysts appearing to represent net negatives for cryptos still.

Now what

The difficulty of forecasting monetary policy decisions remains extremely high, and with most experts failing to see the inflation we’re now battling, one could argue that any sort of forward-looking forecast is likely to be incorrect. Such is the nature of forecasts.      

That said, the idea that we could be due for lower interest rates in the medium term, as the Federal Reserve breaks something, is one that’s starting to gather steam. For risk assets such as cryptos, a return of cheap(er) capital to the system could be the catalyst to drive valuations another leg higher. We’ll have to see what happens in the months and quarters to come, but suffice it to say, there’s plenty for investors to digest right now.  

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Crypto surges: Is now the time to buy Bitcoin and Ethereum? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is this controversial Ethereum-killer finally a buy?
• I’ve already made 158% on Bitcoin. Here’s why I keep holding
• Is Google now joining the crypto party following its latest move?
• Why is the Bitcoin price outperforming for Australian crypto investors?
• The Bitcoin price just tumbled back below US$20,000. What’s happening?

Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/DN2xi6B

The Block Inc (ASX: SQ2) share price is charging higher today, up 8.6% at the time of writing.

Block shares closed yesterday trading for $83.93 and are currently trading for $91.14 apiece.

So, what’s driving investor interest in the buy now, pay later (BNPL) share?

What’s piquing ASX 200 investor interest today?

There’s no price-sensitive news out today to directly impact the Block share price.

The surge comes amid a wider rally in stocks, fuelled by another very strong day in US markets overnight.

Block, which acquired Afterpay in January, is dual listed, both on the ASX and NYSE. And the Block share price finished the day up 8.6% on the NYSE yesterday, with shares up another 2.0% in after-hours trading.

With US stocks leaping higher, the S&P/ASX 200 Index (ASX: XJO) is also up 1.3% at the time of writing.

And BNPL shares are having a particularly strong day. The Zip Co Ltd (ASX: ZIP) share price is up 4.5%, and shares in Sezzle Inc (ASX: SZL) are soaring 12.6%.

The overall strength in the BNPL sector today is likely spurred on by the earnings results from Bank of America Corp (NYSE: BAC). The 13% year-on-year increase in credit card spending the bank reported yesterday beat market expectations. And that increase was topped off by a decrease in customer delinquencies.

With a large footprint in the US, the Block share price will be enjoying some healthy headwinds from the demonstrated resilience of US consumers, despite soaring inflation and fast-rising interest rates.

The big credit card figures bode well for BNPL payment use in the world’s top economy. And with the sector plagued by significant customer defaults, Bank of America’s falling delinquency numbers will also come as good news to investors.

Block share price snapshot

The Block share price has seen its fair share of big ups and downs since listing on the ASX on 20 January.

With steeper falls than climbs, Block shares are down 49% since listing.

The post Here’s why the Block share price just rocketed 8% appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These are the 10 most shorted ASX shares
• Down 49% this year, here’s why I’m still holding my Block shares
• After a horror year, what’s next for ASX BNPL shares in the new quarter?
• Why Baby Bunting, Block, Fortescue, and Santos shares are dropping
• What’s the outlook for ASX 200 tech shares in the second quarter?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/N7Ozg02