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The Immutep Ltd (ASX: IMM) share price is climbing in late-morning trade after announcing a new European patent grant. At the time of writing, the biotechnology company’s shares are swapping hands for 44 cents, up 2.35%.

What was announced?

Investors are pushing Immutep shares higher after digesting the company’s positive update.

According to its release, Immutep advised that it has been granted a patent to add to its portfolio. Approved by the European Patent Office, the latest addition will seek to further protecting Immutep’s intellectual property.

The new patent is titled, ‘Combination therapies comprising antibody molecules to LAG-3’ (patent number EP3317301).

Immutep stated that the patent discusses LAG525, a humanised form of its IMP701 antibody. This is out-licensed to Novartis AG. The new patent also explains how to use LAG525 and spartalizumab. This is an anti-PD-1 antibody molecule that can be used to treat cancer patients.

Developed by Immutep, IMP701 is a therapeutic antibody previously used to target LAG-3. The antibody works in controlling the signalling pathways, activating T cell function. Thus, it removes two brakes to allow the immune system to kill cancer cells.

Immutep noted that rights to the development and commercialisation of IMP701 are exclusively licensed to Novartis. Currently, LAG525 is being evaluated in several trials by Novartis in combination with its PD-1 inhibitor spartalizumab. In addition, Immutep is eligible to receive development-based milestone payments and sales-based royalties on achieving its agreed targets.

The EP3317301 patent is also jointly owned by Novartis and Immutep, and is set to expire on 28 July 2036.

Immutep share price review

In the past 12 months, the Immutep share price has gained 250%, with most of those gains coming in 2020. Year-to-date, the company’s shares are up just 5% after recording heavy selling during March.

On valuation grounds, Immutep has a market capitalisation of roughly $292.4 million, with 672.3 million shares outstanding.

More reading

• Why Immutep, Inghams, REA Group, & Synlait shares are sinking
• Why the Immutep (ASX:IMM) share price is rocketing 39% higher today
• Why the Immutep (ASX:IMM) share price is up 6% today
• Why the Immutep (ASX:IMM) share price will be in focus today

Motley Fool contributor Aaron Teboneras 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 A2 Milk Company Ltd (ASX: A2M) share price has been one of the worst performers on the S&P/ASX 200 Index (ASX: XJO) in 2021.

Since the start of the year, the infant formula and fresh milk company’s shares have lost a third of their value.

Things are even worse for the a2 Milk share price over the last 12 months. Since this time last year, the company’s shares have crashed 55% lower. This compares to a gain of 31% by the ASX 200 index over the same period.

What’s gone wrong for a2 Milk?

The a2 Milk share price has been sold off largely due to the deterioration of its performance because of headwinds associated with the pandemic.

These headwinds are being felt deepest in the daigou channel due to international tourism and student markets coming to a standstill. Daigou shoppers will buy product from local sellers such as supermarkets and then send it back to mainland China at a premium.

What impact has this had on its financials?

These headwinds have had a dramatic impact on the company’s financials. This has led to countless guidance downgrades, which begs the question, why provide guidance when things are so uncertain?

For example, in FY 2020, a2 Milk reported revenue of NZ$1.73 million and was expecting further strong growth in the new financial year.

Just a touch over a month later, management revealed that it had started to observe emerging additional disruption to the corporate daigou/reseller channel. This led to the company reducing expectations and guiding to revenue of NZ$1.8 billion to NZ$1.9 billion for FY 2021.

By December, things were not improving, leading to the company downgrading its guidance by almost half a billion dollars. At that point, it was expecting revenue to be between NZ$1.4 billion and NZ$1.55 billion.

And then in February, a2 Milk released its half year results and downgraded its guidance further. It currently expects revenue to be around NZ$1.4 billion this year.

However, it is worth noting that this guidance assumes that initiatives it is undertaking to reactivate the daigou channel deliver a notable improvement in its sales in the fourth quarter. This is of course far from guaranteed.

And judging by the a2 Milk share price performance, not something which the market appears confident in.

Is the a2 Milk share price good value now?

Despite the significant decline in the a2 Milk share price, some brokers believe it can still go lower.

Ord Minnett currently has a lighten rating and $7.70 price target, whereas Citi has a sell rating and $7.15 price target.

The latter also has concerns about increasing competition in the China market from domestic producers and building inventory levels. In respect to the latter, it suspects that daigou sellers may have to discount product as it nears its expiry date.

More reading

• Is the A2 Milk (ASX:A2M) share price too cheap to ignore?
• These are the 10 most shorted shares on the ASX
• 2 ASX growth shares to buy in April
• These were the worst performing ASX 200 shares in March
• The A2 Milk (ASX:A2M) share price was down almost every day in March

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. 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.

Shares of Tesla (NASDAQ: TSLA) have soared nearly 615% over the past 12 months but will surge to new all-time highs in the coming year.

So says Wedbush analyst Daniel Ives. On Monday, Ives upgraded Tesla to outperform (buy) and raised his price target on the stock from $950 to $1,000. His new base target represents potential gains for investors of roughly 51% over the stock’s closing price on Friday of roughly $661. The bull case is even more compelling, suggesting the stock could nearly double to $1,300. 

Ives cited Tesla’s recently released first-quarter delivery numbers, which soared 109% year over year to 184,800. This came despite a global semi-conductor chip shortage that forced the closure of Tesla’s Fremont factory for two weeks in late February. Ives said the production numbers amounted to a “paradigm changer,” suggesting the results are part of a “global green tidal wave under way.”

The analyst also expects Congress to ultimately remove the ceiling of 200,000 units per manufacturer on cars eligible for the electric vehicle (EV) tax credit, while also increasing the credit to $10,000 per vehicle. This would act as a catalyst to increase demand for EVs in the U.S.

“We now believe Tesla could exceed 850k deliveries for the year with 900k a stretch goal, despite the chip shortage and various supply chain issues lingering across the auto sector.” Ives wrote in a note to clients. 

Will Tesla’s stock price hit $1,000?

It’s hard to dismiss Tesla’s ability to ramp up production. Tesla started out 2020 saying it expected to deliver 500,000 vehicles for the year, a number many thought was pie-in-the-sky. The company delivered 499,550, just 50 vehicles short of Musk’s audacious goal. 

That said, Tesla already has a significant amount of growth baked into its share price. The stocks valuation clocks in at a lofty 23, when a reasonable price-to-sales ratio is typically between 1 and 2. However, given Tesla’s recent pullback and its accelerating production capability, the price target doesn’t seem that far-fetched.

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

More reading

• Bitcoin price mania spreads as Ether price hits record highs
• Why Tesla stock jumped on Wednesday
• Here are the US shares ASX investors have been buying
• This company will make more electric cars than Tesla
• Did the Bitcoin (CRYPTO:BTC) price fly too high too fast?

Danny Vena owns shares of Tesla. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy. Th Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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.

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If you thought former United States president Donald Trump had the corner on moving global share markets, think again.

After pushing through a US$1.9 trillion (AU$2.4 trillion) pandemic relief package early in his presidency, Joe Biden is now pressing ahead with a US$2.3 trillion infrastructure spending proposal.

Unlike his predecessor, Biden is proposing a massive increase in government funding for renewable energy and electric vehicles (EVs).

Which brings us to ASX copper shares.

Why copper miners are cheering for Joe Biden

If EV adoption takes off in the car hungry US, the demand for copper will too. Although lithium may get much of the headlines when it comes to battery power, EVs also require a lot more copper than petrol cars.

Of course, copper is also used in all types of infrastructure, from electrical wiring to plumbing and roofing.

Adding in the rapid recovery of the US economy as it rolls out some 3 million COVID-19 vaccines per day, which saw March handily beat expectations on new job creations, and it goes a long way to explaining copper’s price surge.

As Bloomberg reports, “‘The [US] jobs report on Friday is certainly a big thing’ for copper’s increase, said Peter Thomas, senior vice president at Zaner Group in Chicago.” Thomas added that “a lot of copper will be needed” for Biden’s infrastructure plan.

Copper prices are up more than 3% so far in April and 89% higher than the lows from 27 March 2020. Thought it’s slipped a bit since the 27 February highs, copper is still trading near multi-year highs. And if Biden’s plan goes through as the rest of the world begins its own march to recovery, copper prices could go higher still.

Two ASX copper shares

There are a number of quality copper shares trading on the ASX.

On the larger end of the spectrum, you have S&P/ASX 200 Index (ASX: XJO) listed Oz Minerals Ltd (ASX: OZL).

Oz Minerals has a market cap of just over $8 billion and pays an annual dividend yield of 1.1%, fully franked. Over the past 12 months the Oz Mineral’s share price is up 212%. That compares to a gain of 31% on the ASX 200. Year-to-date, Oz Minerals shares have gained 24%.

On the smaller end of the ASX copper share spectrum, we find Aeris Resources Ltd (ASX: AIS), with a market cap of $192 million.

The Aeris Resources share price is up 163% over the past 12 months. Or roughly double the increase in the price of copper in that same time. Year-to-date Aeris Resources shares are down 5%.

More reading

• Triple whammy hammers the Fortescue (ASX:FMG) share price today
• Why ASX 200 copper shares are eyeing ultracheap Chinese EVs
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Bernd Struben 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

HUB24 Ltd (ASX: HUB)

According to a note out of Credit Suisse, its analysts have retained their outperform rating and lifted their price target on this investment platform provider’s shares to $27.70. Although the broker acknowledges that the prospect of a change to its deposit arrangement, like rival Netwealth Group Ltd (ASX: NWL) experienced, would be a significant near term headwind to earnings, it believes it can overcome this in the long run and remains very positive on its long term outlook. The HUB24 share price is trading at $23.03 today.

Incitec Pivot Ltd (ASX: IPL)

A note out of Macquarie reveals that its analysts have retained their outperform rating but trimmed the price target on this agricultural chemicals company’s shares to $3.08. This follows news that the resumption of production at the Waggaman ammonia plant is behind schedule. While this is disappointing, the broker notes that strong fertiliser prices will offset some of this. This could make the pullback in its share price a buying opportunity for investors. The Incitec Pivot share price is fetching $2.76 today.

NextDC Ltd (ASX: NXT)

Analysts at Goldman Sachs have added this data centre operator’s shares to their conviction buy list and lifted their price target on them to $15.00. According to the note, after meeting with a number of data centre industry participants, Goldman has become increasingly positive on NextDC. It notes that demand remains very strong and pricing continues to be healthy. Goldman also believes the company’s shares deserve to trade at a premium due to its strong growth outlook. The NextDC share price is fetching $11.33 today.

More reading

• Why EML, NextDC, Qantas, & Recce shares are racing higher
• Here’s why the NextDC (ASX:NXT) share price is racing higher
• Goldman Sachs: “Massive opportunity” in ASX 200 alternative real estate shares
• Why 88 Energy, Chorus, Incitec Pivot, & Santos shares are sinking
• ASX 200 up 0.9%: Cleanaway jumps, tech shares rise, Incitec Pivot sinks

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Hub24 Ltd. 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 Alliance Aviation Services Ltd (ASX: AQZ) share price is under pressure on Wednesday despite the release of a positive announcement.

At the time of writing, the aviation services company’s shares are down 3% to $4.33.

What did Alliance announce?

Late this morning Alliance announced that a major contract with mining giant BHP Group Ltd (ASX: BHP) has been renewed.

According to the release, the company’s air charter services agreement with BHP WA Iron Ore has been extended for a further two years.

While no details have been provided in respect to how much the contract is worth, it has been classed as “material” by the company.

Management believes the extension is further evidence of Alliance’s reputation of outstanding customer retention. It also notes that the extension solidifies the relationship that started with the first flight for BHP WA Iron Ore all the way back in 2009.

It is also the second material contract extension in as many days. On Tuesday, Alliance revealed that it will continue to service the oil and gas reserves operations of Santos Ltd (ASX: STO) in the Cooper Basin for the next five years.

That renewal will see Alliance continue to operate services on behalf of Santos to their gas and oil operations in the Cooper Basin. Services will operate from both Adelaide and Brisbane to Santos’ Moomba and Ballera airports.

Commenting on today’s deal with BHP, Alliance’s Chief Executive Officer, Lee Schofield, said: “Alliance is delighted to be continuing the provision of these charter services into the Pilbara. Our commitment to safety and providing our clients with industry leading on time performance has played a significant role in being awarded this extension. We look forward to continuing our exceptional safety and operational record for BHP.”

Despite dropping lower today, the Alliance share price is still up a sizeable 4.5% this week.

More reading

• Alliance (ASX:AQZ) share price flies on latest deal
• UBS is calling time on the ASX iron ore supercycle
• Top broker picks the best ASX shares to buy for the new quarter
• 2 blue chip ASX dividend shares you can buy in April
• ASX 200 boom as Joe Biden unveils massive infrastructure, tax package?

Motley Fool contributor James Mickleboro 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 Recce Pharmaceuticals Ltd (ASX: RCE) share price rose 7% this morning after the company shared good news of its drug, RECCE 327 (R327). The gains come on the back of the successful treatment of a terminally ill human with the antivirus. 

At the time of writing, the Recce share price is trading for $1.04, up 6%.

Let’s look closer at the announcement driving the Recce share price today.

Positive results in human treatment

Recce has announced today that its product has been used to treat a drug-resistant sinus infection in a human.

Consequently, a 59-year-old man was successfully treated with nasality administered R327. His treatment was allowed under strict medical oversight after it was determined that death was likely to occur unless a new treatment was found. Just 90 minutes after first the treatment of R327, he reported his sinuses felt clearer and also less inflamed.

After 3 days of treatment, many of the man’s symptoms had stopped. It was also reported that he experienced no side effects. In addition, samples taken from the man after the treatment showed no sign of the infection or abnormalities caused by R327. Prior to treating with R327, he had received surgeries and multiple antibiotic treatments, including some meant as a last resort.

Today’s news comes nearly a week after the company announced it received positive results from the use of R327 in an animal study. The drug was used to treat sinus infections in mice. Recce has also submitted R327 to the Therapeutic Goods Administration (TGA). R327 is part of a family of synthetic anti-infectives currently being created by Recce.

Commentary from management

Recce’s chief medical officer James Graham, commented on the successful treatment of a human with R327:

We are thrilled by this positive indication for this patient with a terribly debilitating condition that has been driven over many years by this recalcitrant pathogen.

Recce Pharmaceuticals share price snapshot

The Recce Pharmaceuticals share price isn’t having a good year on the ASX, with today’s news bringing a much-needed boost.

Currently, it’s down 3% year to date. Although, it is up by 191% over the last 12 months.

Recce Pharmaceuticals has a market capitalisation of around $170 million, with approximately 173 million shares outstanding.

More reading

• Why EML, NextDC, Qantas, & Recce shares are racing higher
• Why is the Recce (ASX:RCE) share price in the red today?
• Recce Pharmaceuticals (ASX:RCE) share price tumbles despite positive update
• Here’s why the Recce (ASX:RCE) share price is racing higher today

Motley Fool contributor Brooke Cooper 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 Medlab Clinical Ltd (ASX: MDC) share price is rising today after the European Patent Office announced its intention to grant the Australian company a patent for its Nanocelle technology.

The Medlab share price is up 8.33% today to 26 cents per share. 

Medlab is a medical research and development company that’s gained a lot of publicity for its innovative medical use of THC, one of the psychoactive compounds in cannabis.

It largely focuses on THC and other cannabinoid products as pain-relievers, but the company is also engaged in researching and formulating novel biotherapeutics or new therapeutic medicines derived from natural organisms.

Its products aim to improve health outcomes in early to moderate stage chronic diseases such as chronic kidney disease, pre-diabetes, and obesity.

What is Medlab’s Nanocelle technology?

Medlab is currently focused on the development of Nanocelle technology that can increase the solubility of medicines. It does this through a sub-micron spray, which is administered to the membrane lining the inside of the mouth.

When sprayed, it provides faster and more effective absorption of active ingredients into the bloodstream, without the need for needles or pills.

Medlab considers Nanocelle “a commercially viable platform that offers unique opportunities for partnering with some of the biggest players in the pharma industry”. It was behind considerable Medlab share price rises in February this year.

When the European Union grants Medlab’s patent, it will be the second granted for Nanocelle, following receipt of an Australian patent in September 2020. Medlab has also filed patent applications in the United States, New Zealand, Singapore, Hong Kong and Canada.

What Medlab management said

Medlab CEO Dr Sean Hall said the patent was the next step in Nanocelle’s expansion into worldwide markets.

Receiving notice of intent from the European Patent Office represents another important validation of our NanoCelle drug delivery platform, offering Nanocelle protection in one of the world’s largest markets.

The grant will not only bolster the competitive advantage of our pharmaceutical and nutraceutical portfolio, it will also support our robust research and development pipeline and commercial partnering focus. We are delighted with this recognition.

Medlab share price snapshot

The Medlab share price has been on a rocky road, rising from 15 cents in July 2020 to more than 36 cents in January this year. It’s gained 6% in 2021 so far but lost 8% over the past 12 months and is down 40% against the S&P/ASX 200 Index (ASX: XJO).

More reading

• BBX Minerals (ASX:BBX) share price plunges 17% on Brazilian COVID struggles
• Are ASX tech shares like Afterpay (ASX:APT) back to the races?
• Why the Imugene (ASX:IMU) share price just hit an all-time high
• ASX 200 up 0.25%: EML surges on acquisition news, Westpac’s APRA update
• Amazon just passed a major milestone in the digital advertising market

Motley Fool contributor Lucas Radbourne-Pugh 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 BBX Minerals Ltd (ASX: BBX) share price has fallen today after the company revealed Brazil’s ongoing struggle to contain its coronavirus outbreak has hampered its mining operations.

The BBX Minerals share price has fallen 17.65% to 21 cents per share at the time of writing.

BBX Minerals has a large amount of exposure to Brazilian workplace regulation through its current drilling activities and its metallurgical testing program at Tres Estados, in the nation’s Amazonas state, which is in the far north-west of the country. Its Tres Estados project is focused on gold mining.

BBX Minerals is engaged in the exploration and development of mining assets in Brazil and Australia, but Brazil contributes maximum revenue for the company. BBX is focused on gold exploration in Brazil and its current projects include Juma East, EMA Gold, and Tres Estados Gold.

BBX releases a dispiriting exploration update

Brazil’s struggles to contain the coronavirus spread have been well documented. The country has reported the second most cases and deaths globally due to COVID-19, and recently passed 4,000 deaths per day.

BBX Minerals CEO, Andre Douchane, began his company’s report by expressing his condolences to the Brazilian people throughout the crisis, saying “our hearts go out to the Brazilian people for their extraordinary struggle against COVID 19.”

The company has been limited in its ability to explore or test assays during the last month, as in order to further reinforce current lockdown measures, the São Paulo state government declared a 10-day public holiday from March 26 to April 4, during which time the company ceased many of its activities. 

Despite other regions where BBX operates implementing similar controls, BBX is currently able to continue limited-scale testing of its drilling assays at some test facilities.

However, COVID-19 is not the only factor leading to the BBX Minerals share price decline. The company has now completed drilling in 29 of the 30 holes at its Tres Estados project and hasn’t struck notable quantities of gold, platinum or palladium in its recent report. It discovered some copper deposits.

What BBX management said

Douchane said BBX was hamstrung by multiple factors in its ability to explore further.

In line with previous findings, fire assaying failed to show gold. There are several methods other than fire assays that do allow the quantification of the contained metals. Some using various acids such as the 5-acid method and others by using a smelting method that uses either nickel or copper as
a collector.

BBX employed a metallurgical testing method several years ago that used copper as a collector to determine contained metals. The IPT 5-acid method while repeatable is time consuming and exceedingly difficult to use based on the need for highly pure acids and specialised microwave equipment, hence BBX’s continued research for a simpler, less expensive method.

BBX Minerals share price snapshot

The BBX Minerals share price has been falling reasonably steadily since highs of 49 cents per share in September 2020 and has now lost 27% in 2021 so far.

Its share price has still posted gains of 110% over the past 12 months, and has beaten the basic materials sector by just over 70% in that timeframe.

More reading

• Are ASX tech shares like Afterpay (ASX:APT) back to the races?
• Why the Imugene (ASX:IMU) share price just hit an all-time high
• ASX 200 up 0.25%: EML surges on acquisition news, Westpac’s APRA update
• Amazon just passed a major milestone in the digital advertising market
• The Fiji Kava (ASX:FIJ) share price rocketed 26% this morning. Here’s why

Motley Fool contributor Lucas Radbourne-Pugh 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 S&P/ASX 200 Index (ASX: XJO) seems to be on a chocolate high. Since the Easter long weekend, the ASX 200 has gotten a second wind, rising a healthy 1% since last Thursday at the time of writing. But one ASX sector seems to be enjoying the lion’s share of the goodwill on the share market. ASX tech shares have had an exceptional week. Since Thursday afternoon, the S&P/ASX All Technology Index (ASX: XTX) is up 5.7%. It’s also up 9.2% since 30 March, just a bit over a week ago.

ASX tech shares of all stripes are participating in these gains. Take Afterpay Ltd (ASX: APT). Afterpay shares are up 3.4% today and are, at the time of writing, back above $120 a share. It was only last week that Afterpay had done the unthinkable and fell down to just over $101 after making a new all-time high of $160 a share in February. Other ASX tech shares are also bouncing back. Zip Co Ltd (ASX: Z1P) shares are up almost 16% since 30 March after falling close to 50% since 16 February at one point. It’s a similar story with Xero Limited (ASX: XRO), which is up more than 20% over the past month.

There has been a pretty enthusiastic bounce for ASX tech shares whichever way you look at it. Of course, that comes after what has been a horror month or two for tech. Between 10 February and 9 March, the All Technology Index fell 18%. Even after today’s moves, the index remains down more than 8% from its February high.

So what’s behind this move?

Bonds fall and push tech higher

Well, it’s not hard to find a possible answer if we look at what was holding ASX tech shares down in the first place. And that would be rising bond yields. As we’ve covered rather extensively over the past month or two, government bond yields have been on the rise lately. That’s both here and in the United States. Higher government bond yields result in many investors re-valuing tach shares. That’s because these companies are often priced on their future cash flows rather than what they make today.

But US government bond yields have actually been backtracking. As we reported last month, the US 10-year government bond yield hit a high of more than 1.77% on 31 March, its highest level since January 2020. But today, those same bonds have a yield of 1.67%.

This has sparked a surge in US tech shares. Since 30 March, the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) index is up around 5%. It’s likely that the ASX tech sector is taking its queues from US tech shares this week. If US government bonds remain off the boil or even fall further, it could well be back to the races for tech shares, and on to new highs.

More reading

• ASX 200 up 0.25%: EML surges on acquisition news, Westpac’s APRA update
• 2 ASX 200 dividend shares with large yields
• Acquisitions and spin-offs put these 3 ASX shares on brokers’ “buy” list
• The Australian economy will recover from COVID-19 this year, says IMF
• Why Zip (ASX:Z1P) and this ASX growth share could be buys

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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