Key points

• The Renascor share price is up 19% in lunchtime trade
• The company has received an $185 million loan to develop its South Australian graphite project
• Its SA site is the world’s “second largest proven resource”

---

The Renascor Resources Ltd (ASX: RNU) share price is flying 19% higher today off the back of an already green month.

The price jump comes amid the energy company receiving the green light for a federal government loan for its South Australian graphite site. Renascor touts the project as “the largest reported graphite reserve outside Africa”.

At the time of writing, the energy company’s shares are trading at 28.5 cents each, up 18.75% after hitting their all-time high of 31 cents earlier in the session.

Let’s take a look at the company’s latest news.

What did the federal government approve?

This morning, Renascor announced it had received a $185 million government loan to develop its Siviour Graphite Project on SA’s Eyre Peninsula (around 120km northeast of Port Lincoln).

This loan will assist the company in achieving its goal of becoming “a world leader in the sustainable production of 100% Australian-made graphite product for use in the lithium-ion batteries fuelling the electric vehicle revolution”.

The loan will help Renascor combine its SA site with an “eco-friendly” purification processing facility to produce purified spherical graphite.

The conditional loan comes under the umbrella of the federal government’s $2 billion Critical Minerals facility and will be administered by Export Finance Australia (EFA).

The loan facility, established last year, assists projects to “secure the vital supplies of resources needed to drive the new energy economy and support the resources jobs of the future”, Renascor explained.

The government had previously granted the venture “major project status”. It will involve an estimated $204 million in capital expenditure.

Comment from management

Renascor managing director David Christensen said:

The Siviour Graphite Project represents an important opportunity for Australia, and South Australia in particular, to develop a world class, globally competitive downstream processing capability in a critical mineral that is fundamental to the development of the electric vehicle revolution.

The support from the Australian Government and EFA is a significant and tangible endorsement of this opportunity and Renascor’s ambition to become a world-leading supplier of Purified Spherical Graphite.

We look forward to working closely with EFA to satisfy the conditions of approval and to conclude all required facility documentation.

Renascor share price snapshot

Over the last 12 months, the Renascor share price has skyrocketed a whopping 840%.

The company’s share price now eclipses its previous 52-week high of 28 cents last month. This compares to its lowest point of 3 cents exactly a year ago.

Renascor has a market capitalisation of $530 million with approximately 1.89 billion shares issued.

The post Here’s why the Renascor (ASX:RNU) share price is rocketing 19% today appeared first on The Motley Fool Australia.

More reading

• 2 reasons the Nasdaq has led the market lower in 2022
• Could South32 (ASX:S32) be set to downgrade its guidance when it reports this month?
• Here’s why the Strike Energy (ASX:STX) share price is surging 11% today
• ASX 200 (ASX:XJO) midday update: Amcor slides, BHP and Fortescue storm higher
• Rio Tinto (ASX:RIO) boss: ‘This is not the type of company we want to be’

Motley Fool contributor Alice de Bruin 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 Bruce Jackson.

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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.

Investors took a pause on Tuesday morning, with major stock market benchmarks easing lower after massive gains over the past two trading sessions. As of 10:30 a.m. ET today, the Nasdaq Composite (NASDAQINDEX: ^IXIC) was down more than half a percent, taking far larger losses than fellow indexes like the Dow Jones Industrial Average (DJINDICES: ^DJI). That’s been a trend lately, with the Nasdaq seeing a much larger drop in January than the Dow.

For casual investors, there’s often confusion when different indexes don’t behave the same way. However, two fundamental differences in the makeup of the Dow and the Nasdaq explain the disparity. Below, we’ll go into both of those factors to see how they’ve played out lately.

1. The Dow doesn’t have many Nasdaq stocks

When you look at the broader market, you’ll see a roughly even split among stocks listed on the New York Stock Exchange (NYSE) and those on the Nasdaq stock market. If anything, there are slightly more companies that choose to list on Nasdaq.

However, among the 30 stocks that make up the Dow Jones Industrial Average, the two exchanges aren’t even close to parity. Nearly two dozen Dow stocks are listed on the NYSE, compared to just seven on Nasdaq.

That split reflects the historical respect that investors gave companies with NYSE membership. Even though Nasdaq has tightened its standards, blue chip investors still seem to value the clout that comes with an NYSE listing, and that’s reflected in the choices the Dow has made in bringing companies into the average.

2. The Dow’s price-weighted methodology underweights Nasdaq-listed components

The relative lack of Nasdaq stocks in the Dow explains much of the difference in index performance. But related to that is the fact that the Dow’s price-weighted methodology doesn’t give the Nasdaq-listed stocks that do make the cut their fair influence compared to the Nasdaq Composite’s calculation method, which is market-capitalization weighted.

The most obvious way this plays out is with Apple (NASDAQ: AAPL). With a market cap that has at times exceeded $3 trillion recently, Apple is by far the largest company listed on U.S. stock market exchanges. Yet because its price is relatively middle-of-the-road for a Dow stock at $170 to $175 per share, Apple gets only an average weighting of around 3.3% within the Dow. By contrast, for the Nasdaq-100 index, Apple’s high market cap gives it a more than 12.5% weighting — nearly four times the influence over the index’s movements.

All told, the seven Nasdaq stocks in the Dow have only about a 20% weighting within the average. That’s largely because three of the Dow’s four lowest-priced stocks are Nasdaq-listed, combining for just a 2.9% weighting.

2 measures of the same stock market

Some argue that the Dow’s idiosyncrasies make it a poor benchmark of stock market performance and that investors shouldn’t pay any attention to it. Yet while it’s true that the Dow marches to its own beat, it remains a popular way for non-investors to keep track of what’s happening with the stock market.

Keeping track of both the Dow and the Nasdaq, therefore, can actually add some insight into what’s happening in the market. As long as you understand why there can be differences in performance, the movements of the two indexes can point you toward trends that might help some stocks at the expense of others in the future. 

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

The post 2 reasons the Nasdaq has led the market lower in 2022 appeared first on The Motley Fool Australia.

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Dan Caplinger owns Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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Key points

• South32 has flagged upcoming changes to its coal production guidance for financial year 2022 and financial year 2023
• The updates will be included in the company’s half year results – set to drop on 17 February
• While South32 hasn’t said whether the changes will be positive or negative, there is reason to believe the guidance could be dropped

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The South32 Ltd (ASX: S32) share price tumbled 5% last week when it downgraded its manganese production guidance in its report for the December quarter.

But the company also flagged another worrying possibility. It told the market it will soon be adjusting its coal production guidance for the coming years.

Let’s take a look at what investors might want to keep an eye out for in the metals and mining company’s results for the first half of financial year 2022 (FY22).

At the time of writing, the South32 share price is $3.97.

Could South32 be getting ready to drop its FY22 guidance?

Own South32 shares? Let’s break down what might be in the company’s half year earnings report.

First off, it’s expecting to update its FY22 and FY23 production guidance for Illawarra Metallurgical Coal.

The company hasn’t said if the change will be an upgrade or a downgrade. However, it flagged some notable disruptions in its report for the December quarter.

South32 noted that an extended longwall move at Illawarra Metallurgical Coal saw its production drop 23% over the first half.

It also stated it made no energy coal sales of low-margin coal wash as increased freight costs made it “uneconomic”.

It also said its operating unit cost for the first half of FY22 was US$101 per tonne –20% higher than its previously given guidance.

Additionally, COVID-19 is continuing to weigh on the company’s activities. The company is wary workforce restrictions in New South Wales could impact its coal operation’s workforce in the second half of FY22.

Finally, South32 expects to increase its FY22 operating unit cost guidance for Worsely Alumina. Though, its production guidance will likely remain the same.

It’s a similar story for its Australia Manganese operation. It dropped the operation’s FY22 production guidance by 9% last week and is expecting to increase its operating cost guidance later this month.

Though, it’s worth noting the company upgraded its production guidance for Cannington by 5% in its quarterly results.

As a result, plenty of eyes will likely be watching the South32 share price when the company releases its half year results to the ASX on 17 February.

The post Could South32 (ASX:S32) be set to downgrade its guidance when it reports this month? appeared first on The Motley Fool Australia.

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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 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 Bruce Jackson.

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Key points

• Strike Energy shares accelerate on back of Major Project Status award for Haber Project
• Proposed development of fertiliser production facility expected to reduce carbon intensity of Australian farming
• The award streamlines approvals processes for Strike Energy

---

The Strike Energy Ltd (ASX: STX) share price is pushing higher at midday on Wednesday.

This comes after the company announced an update on its Project Haber, located near Geraldton in Western Australia’s mid-west region.

At the time of writing, the energy producer’s shares are swapping hands for 24.5 cents, up 11.36%.

Strike Energy secures ‘Major Project Status’ award

The company’s latest release has pushed Strike Energy shares up to a near four-month high today.

According to today’s statement, the Australian Federal Government has awarded Stike Energy’s Project Haber Major Project Status.

The proposed fertiliser production facility will replace Australia’s reliance on more than $1 billion of fertiliser imports each year.

Strike Energy intends for Project Haber to provide locally sourced fertiliser that would improve Australian agriculture’s competitiveness. In addition, this is expected to reduce the carbon intensity of Australian farming.

The decision to award the major project status is based on the opportunity to advance Australia’s downstream manufacturing industry and support the integration of low carbon technologies and renewable hydrogen.

Notably, the project aligns with Australia’s National Hydrogen Strategy and has the potential to reduce carbon intensity of the urea used in Australia by 60%. This is through adopting current ammonia technology and integrating green hydrogen supplies.

Major Project Status will provide Strike Energy’s Haber Project with certain services to streamline approvals processes.

Strike Energy managing director and CEO Stuart Nicholls commented:

Australia has one of the world’s greatest endowments of natural resources, whether that is gas, wind, solar or geothermal energy. At Strike we believe we should maximise the benefit of those resources for the nation by adding value to them here.

By re-domesticating urea manufacturing in WA’s Mid West, Strike’s Project Haber will create regional jobs, incubate WA’s hydrogen economy whilst making our agriculture sector more competitive and carbon efficient.

About the Strike Energy share price

Over the past 12 months, the Strike Energy share price has fallen by around 20% in value. However, when looking at year to date, its shares are up 19%, attributable mostly to today’s gains.

Strike Energy commands a market capitalisation of roughly $445 million, with approximately 2.03 billion shares on its books.

The post Here’s why the Strike Energy (ASX:STX) share price is surging 11% today appeared first on The Motley Fool Australia.

More reading

• Strike Energy (ASX:STX) share price slides despite continuing exploration success

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is having a strong day and is charging notably higher. The benchmark index is currently up 1.4% to 7,106.3 points.

Here’s what is happening on the ASX 200 today:

Virgin Money shares rise following Q1 update

The Virgin Money UK (ASX: VUK) share price is rising today after investors responded positively to its first quarter update. The UK based bank revealed that its net interest margin (NIM) improved from 170bps to 177bps during the quarter. This was driven by higher hedge contributions, lower cost of funds, and a higher yielding lending mix. Management now expects its full year NIM to be ~175bps.

Amcor shares fall on half year update

The Amcor (ASX: AMC) share price is falling on Wednesday following the release of its half year results. For the six months ended 31 December, the packaging company revealed that its net sales rose 12% to US$6,927 million and its adjusted EBIT grew 5% to US$769 million. And while its net profit fell a touch short of expectations (US$548 million vs US$554 million), it is worth highlighting that management reiterated its full year earnings guidance.

Mining shares rise

A key driver of the ASX 200’s gains today has been the resources sector. Mining giants such as BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) are recording particularly strong gains on Wednesday. This has led to the S&P/ASX 200 Resources index rising by a sizeable 2.7% at lunch.

Best and worst ASX 200 performers

The best performer on the ASX 200 today has been the Champion Iron Ltd (ASX: CIA) share price with a gain of 5%. This follows the aforementioned gains in the resources sector today. The worst performer has been the Credit Corp Group Limited (ASX: CCP) share price with a 4% decline. This follows a mixed response to yesterday’s first half update by brokers.

The post ASX 200 (ASX:XJO) midday update: Amcor slides, BHP and Fortescue storm higher appeared first on The Motley Fool Australia.

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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 owns and has recommended Amcor Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• The Rio Tinto share price is climbing on Wednesday morning
• The company published a review of its workplace culture including findings of bullying, racism, and sexual assault
• Rio Tinto is determined to implement the report’s recommendations

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The Rio Tinto Ltd (ASX: RIO) share price is lifting in morning trade amid the company describing findings of a review into its workplace culture as “disturbing”.

The mining giant’s shares are up 3% at the time of writing, trading at $112.16 apiece. This has recouped yesterday’s loss when the company’s shares dropped 2.74%.

Rio Tinto is the world’s second-largest metals and mining company. Let’s take a look at its latest news.

Review into company culture handed down

Rio Tinto has published a report into its workplace culture carried out by former Australian Sex Discrimination Commissioner Elizabeth Broderick.

It found 28.2% of women and 6.7% of men have experienced sexual harassment at Rio Tinto worksites. 21 women reported attempted rape or sexual assault.

The review also identified incidences of bullying, sexism, and racism.

The company’s chief executive Jakob Stausholm described the findings as disturbing and offered his apologies. He said:

The findings of this report are deeply disturbing to me and should be to everyone who reads them. 

I offer my heartfelt apology to every team member, past or present, who has suffered as a result of these behaviours. This is not the kind of company we want to be.

Rio Tinto said it will implement all the report’s 26 recommendations. Leadership will ensure the company and its camp and village facilities are safe, respectful, and inclusive.

The company will bring in early intervention options and improve how it responds to workplace complaints.

Commenting on the future direction of the company, Stausholm added:

I am determined that by implementing appropriate actions to address the recommendations, and with the management team’s commitment to a safe, respectful and inclusive Rio Tinto in all areas, we will make positive and lasting change and strengthen our workplace culture for the long term.

Rio share price snapshot

The Rio Tinto share price has dropped 2.86% in the past 12 months but has had a good start to the year, up almost 12% in 2022. It’s 4.55% higher in the past week alone.

For perspective, the S&P/ASX 200 Index (ASX: XJO) Index has returned 4.55% in the last 12 months.

Last week, my Foolish colleague James reported Rio Tinto was one of the best performers on the ASX. A broker note out of Macquarie gave the company’s share price an outperform rating with a $130 price target.

Rio has a huge market capitalisation of $41 billion based on its current share price.

The post Rio Tinto (ASX:RIO) boss: ‘This is not the type of company we want to be’ appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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Shares in Bank of Queensland Limited (ASX: BOQ) are rangebound today after spiking into the green as the gates opened for trading today.

At the time of writing, the Bank of Queensland share price is charging less than 1% higher and is fetching $7.84 in early trading.

The bank’s share price collapsed from its 52-week high of $9.74 back in October and hasn’t managed to recover to that level since – even after thrusting from lows of $7.60 in December

Even with the pullback in share price, the team at JP Morgan is heavily bullish on Bank of Queensland, noting it is “well positioned to deal with industry headwinds” in its outlook for the ASX banking sector in 2022. Let’s take a closer look.

Why’s JP Morgan bullish on Bank of Queensland?

The broker ranks Bank of Queensland amongst its top banking picks within its coverage universe. JP Morgan reckons the bank is set to absorb industry-specific headwinds better than its peers in 2022 for a number of reasons.

For instance, the bank has funding cost savings from “Term Funding Facility and deposits costs which have further to fall than peers”, the broker says.

Not only that but JP Morgan is excited about the bank’s growth and efficiency prospects following its recent ME Bank acquisition.

This has “potential for optimisation in both its own deposit book and the funding mix of ME Bank”, according to the firm.

Folding this acquisition, alongside the bank’s digitisation efforts and strengths in its term deposit book, JP Morgan estimates a return on tangible equity (ROTE) of 10.3% for Bank of Queensland this year.

With these drivers in mind, plus the recent pullback in share price, analysts at the firm believe that investors are overlooking key growth levers that the Bank of Queensland has in place, especially following the ME Bank acquisition.

Whilst it acknowledges successful integration of ME Bank into the Bank of Queensland’s portfolio is a tedious task, the firm is also perplexed as to why the market is under-appreciating the potential there.

“We argue that, given the large valuation discount vs peers, the market is not paying for synergies from the ME
Bank acquisition, albeit we acknowledge that this will require careful execution, given the already-full transformation/fix agenda”, the broker said.

As such, analysts with JP Morgan maintained their overweight rating on the stock, urging clients to buy in or to allocate more weight within portfolios if already holding.

The broker values Bank of Queensland at $9.80 per share, suggesting an upside potential of 25% at the time of writing.

Bank of Queensland share price summary

The Bank of Queensland share price has struggled lately after tumbling from its former highs in late 2021. As such, it has lost more than 1% in the past 12 months and is down more than 3% to start off the new year.

Despite the calamity, shares have regained support this week and are now up 3% in the past 5 days of trading, although trading volume has been slim compared to the monthly average.

The post Own Bank of Queensland (ASX:BOQ) shares? This broker sees 27% upside in 2022 appeared first on The Motley Fool Australia.

More reading

• Goldman tips Bank of Queensland (ASX:BOQ) share price to rise 25%
• What’s happening to ASX bank shares today?
• What do rising bond yields mean for the Bank of Queensland (ASX:BOQ) share price in 2022?
• How are ASX bank shares performing today?
• Here’s what happened to the Bank of Queensland (ASX:BOQ) share price in 2021?

Motley Fool contributor Zach Bristow 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 Bruce Jackson.

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The Novonix Ltd (ASX: NVX) share price is pushing higher on Wednesday morning.

At the time of writing, the battery technology company’s shares are up 2% to $7.86.

Why is the Novonix share price pushing higher?

Today’s gain appears to have been driven by broad strength on the Australian share market and an update on its US listing.

In respect to the latter, this morning Novonix revealed that its American Depositary Receipts (ADRs) have now commenced trading on the Nasdaq Stock Market. The Bank of New York Mellon has been appointed depositary, custodian, and registrar for the program.

The release notes that the ADRs are based on the company’s ordinary shares currently on issue, with each ADR representing four fully paid shares of Novonix.

Is the Novonix share price going higher?

Unfortunately, one leading broker believes the Novonix share price may have peaked for the time being.

This morning the team at Morgans retained its hold rating and cut its price target to $6.97. This implies potential downside of 11% from current levels.

Though, it is worth noting that the broker does see scope for the Novonix share price to trade beyond its price target.

Morgans commented: “NVX offers ASX investors an opportunity to get direct exposure to the North American battery market. The share price exceeds the value of our base case DCF valuation but it has had a tendency to push higher on positive news. Should NVX secure a major customer like Samsung or Sanyo then the stock could push higher on positive sentiment.”

“We think that once any potential momentum stalls though the price will be vulnerable to pull backs and we maintain our HOLD rating. NVX’s share price has shown very high levels of volatility which we think will continue,” it concluded.

The post What this broker is saying about the Novonix (ASX:NVX) share price appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Credit Corp impresses, Boral’s $3bn capital return
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• Novonix (ASX:NVX) share price lifts 4% on quarter of expansion
• Why Accent, BrainChip, Fortescue, and Novonix shares are sinking
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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 Bruce Jackson.

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Key points

• Mineral Resources share price rises on government announcement
• Potential to significantly increase iron ore shipments
• Joint venture partners yet to make final investment decisions

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The Mineral Resources Limited (ASX: MIN) share price is up 3.19% in late morning trade to $59.23 per share.

Below we take a look at the company’s update on its iron ore capacity allocation at the Port of Port Hedland.

How has the capacity allocation changed?

The Mineral Resources share price is lifting after the company reported that the government of Western Australia will increase iron ore export capacity at the Port of Port Hedland.

The government will also provide a new capacity allocation at Stanley Point berth 3 (SP3).

Should all the necessary approvals be obtained, this will be allocated to the joint venture between Hancock Prospecting and Mineral Resources. According to the release, those approvals should be finalised by mid-year.

The joint venture, announced on 29 November, will see the two companies investigate the joint development of a new iron ore export facility at SP3. Both companies still need to make a positive final investment decision to continue with the project after completing an expedited feasibility study.

Commenting on the announcement, Mineral Resources managing director Chris Ellison said:

Today’s announcement is a key milestone in MRL’s strategy to unlock stranded deposits in the Pilbara by developing pit-to-port solutions and expanding our capability to be a long-term, low-cost sustainable supplier of iron ore to international markets.

We acknowledge the extensive consultation and review work completed by the Minister for Ports, Rita Saffioti, and the team at the Pilbara Ports Authority to ensure the Port Development Plan maximises exports and advances industry growth, which will lead to thousands of jobs for Western Australians for years to come.

If SP3 is developed as planned, Mineral Resources says it intends to ship at least 20 million tonnes of iron ore per annum.

Mineral Resources share price snapshot

The Mineral Resources share price is up 62% since this time last year, compared to a 12-month gain of 4% posted by the S&P/ASX 200 Index (ASX: XJO).

So far in 2022 Mineral Resources shares have gained 5%.

The post Here’s why the Mineral Resources (ASX:MIN) share price is shooting higher today appeared first on The Motley Fool Australia.

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• Here’s why Santos (ASX:STO) is attracting some investor ire this week
• ASX lithium shares in focus amid potential supply squeeze
• These were the worst performing ASX 200 shares last week
• Top brokers name 3 ASX shares to sell today
• Mineral Resources (ASX:MIN) share price falls 5% following brokerage downgrade

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 Bruce Jackson.

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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

Today’s fluctuations with cryptocurrency Shiba Inu (CRYPTO: SHIB) don’t necessarily register on the meme-token Richter scale. In fact, by all accounts, it’s been a “steady-as-she-goes” day, with Shiba Inu fluctuating within a very modest 3.5% band throughout the day. As of 4:15 p.m. ET, Shiba Inu is up 1%, though its daily gains and losses haven’t exceeded 2.5%, a telling statistic.

Broadly speaking, it appears crypto investors are taking a breather today, following some “bad-news-is-good-news” rally over Indian crypto legislation. Bond yields have stabilized and there’s relatively little news flow driving specific meme tokens like Shiba Inu —  at least, not enough news to push this token by a double-digit percentage margin in a specific direction.

So what

In addition to these macro factors, investors looking at Shiba Inu may see some other things they like. Expectations that a Robinhood listing could arise and the potential for a Shiba Inu-related metaverse future seem enticing. For bears, concerns about interest rates and the risk-off trade providing strong headwinds remain.

Accordingly, it appears these factors have largely cancelled themselves out. Whether this rather calm period will continue or not is questionable. However, for now, investors appear to be pondering in which direction this token could be headed in the near term.

Now what

Just because today’s been a calm day in Shiba Inu land doesn’t mean this is going to continue forever. Far from it. Shiba Inu has shown itself to be one of the most volatile tokens in the market. I don’t expect that to change any time soon.

That said, Shiba Inu’s size and supporter base is impressive. Days like today can suggest that investors may be “accepting,” to some degree, Shiba Inu’s valuation. It’s very likely too soon to tell whether this will continue over the near term. Certainly, over the longer term, I expect volatility to remain higher than average, given how wildly this token has moved in recent months.

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

The post Here’s what’s driving stability with Shiba Inu today appeared first on The Motley Fool Australia.

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Chris MacDonald 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 Bruce Jackson.

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

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