Energy pushes ASX higher, English football club paid for by crypto investors and Tesla now accepts Dogecoin

A consortium of crypto investors has offered to buy Bradford FC, while well-known bitcoin investor Peter McCormack has purchased a lower league football club Bedford FC.

Energy stocks have pushed the ASX higher this morning.

The S&P/ASX200 had gained 18.40 points or 0.25% to 7,310.60 at time of writing.

This index has lost 0.92% for the last five days, but sits 4.22% below its 52-week high.

The top-performing stocks so far are Nanosonics Ltd up 4.41% and Washington H Soul Pattinson & Company Ltd up 4.06%.

Other winners were BHP Group up 0.8%, Fortescue gained 0.9%, major banks rose 0.5%-0.8% with CBA rising 0.5%, Goodman gaining 0.56% and Cero up 1.4%.

On the downside, Afterpay Ltd (ASX:APT) dragged as it lost 3.8% after Block Inc, dived 5.3%. It seems neither Block nor Afterpay have had a good time of it since the acquisition of Afterpay was announced.

As for Magellan, it gained 6.1% before turning down 2.3%, despite analyst warnings not to invest.

The latest on the anti-Magellan bandwagon was Morgans.

“In our view, risks need to alleviate before we can take a more considered view on MFG with respect to valuation,” Morgans said.

“We would avoid the stock until there is more certainty in the funds under management base and earnings outlook.”

RBA meets to discuss economy

The Reserve Bank of Australia has reinforced its stance that it will not raise interest rates until there is stronger wages growth.

“The board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range,” RBA minutes said.

“This will require the labour market to be tight enough to generate wages growth that is materially higher than it is currently. This is likely to take some time and the board is prepared to be patient.”

The RBA did say we should brace for financial market volatility.

“The near-term outlook for travel services had been clouded by the emergence of the omicron variant of COVID-19, as there was some risk that it would give rise to renewed restrictions or travel hesitancy,” its statement said.

“Members commenced their discussion of international financial markets by noting that bond yields and equity prices had declined globally and become more volatile, as the identification of the omicron variant of COVID-19 saw some renewed restrictions and increased uncertainty about the global economic outlook.”

As for Omicron, it stated, “High rates of vaccination and substantial policy support continued to underpin the recovery.

“The emergence of the Omicron variant was a new source of uncertainty, but it was not expected to derail the recovery.”

As for inflation, it said, “Underlying inflation had picked up to a little above 2% for the first time in six years,” according to the minutes.

As for its Bond Purchase program, it said, “If better-than-expected progress towards the board’s goals was made, then the third option (ie to cease bond purchases in mid-February) would become more appropriate.

“Alternatively, if progress was slower than expected, or if the outlook became more uncertain, the case for the second option (ie to reduce the pace of purchases and then review it again in May 2022) would be stronger.

“If there were another serious economic setback, a different set of options would need to be considered.”

Meanwhile, demand for goods continues to put pressure on supply chains.

“Alongside a run-up in energy prices, these capacity constraints had contributed to the upswing in inflation in major advanced economies over recent months.

“Nevertheless, some timely indicators of price pressures in global supply chains, including shipping costs and prices for key intermediate inputs, had shown signs of stabilising of late.”

On the crypto front

As we do each week, we caught up with eToro crypto expert Simon Peters to get the lowdown on what is happening in the world of cryptocurrencies. Here is his take…

TRON founder departs

TRON founder Justin Sun has announced he is leaving his crypto project behind to become World Trade Organisation (WTO) ambassador for Grenada.

Sun says he is leaving in order to help promote crypto projects and awareness of blockchain technology in Latin America.

With the founder departing, this leaves the TRON network he founded “essentially decentralised” he says. Nodes associated with Sun have been withdrawn.

The token, TRX, and blockchain project, offers decentralised open-source protocol for the entertainment industry. The token can be used to pay for content on its decentralised platform which aims to compete with the likes of YouTube and iTunes for content distribution. 

Crypto investors dive into English football

A consortium of crypto investors has offered to buy Bradford FC, while well-known bitcoin investor Peter McCormack has purchased a lower league football club Bedford FC.

The consortium, called WAGMI United intends to buy League One club Bradford FC, the club’s chairman Stefan Rupp confirmed. Plans to buy the club by WAGMI emerged in an interview with the Washington Post.

The investors want to build NFTs at the core of the club’s crypto USP, using the technology to offer unique opportunities to investors and supporters of the club. 

As for Bedford FC, McCormack said in a long Twitter thread he intended to turn the minor club into a Premier league challenger using “bitcoin at its heart” making it a “bitcoin club”.

In his thread, McCormack claimed to have secured sponsorship for the club already and said the capital investments through crypto could help the club march up through the leagues.

Bedford FC currently plays in South Midlands League Division 1, some 10 divisions below the Premier League.

Tesla to accept Dogecoin

Elon Musk has announced that Tesla will accept dogecoin for payment of certain merchandise products.

Taking to Twitter, as is often the eccentric billionaire’s modus operandi, Musk announced in a tweet “Tesla will make some merch buyable with Doge & see how it goes”.

Dogecoin’s price popped in the wake of the tweet, spiking over $0.20. But information as to the actual offer is still limited. Tesla sells a range of merchandise that can cost anywhere between $50 and $1,500. At the time of writing dogecoin is now trading around $0.16.

On the small cap front

Azure Minerals Ltd (ASX:AZS) is 4.48% higher after recording further strong nickel and copper hits from a drilling campaign at the Andover project’s VC-07 East Deposit.

SenSen Networks Ltd (ASX:SNS, OTCQB:SNNSF) is up 4.17%. SNS secured a multi-year contract with the Queensland Revenue Office to roll out its vehicle-mounted automated number plate recognition technology.

Rumble Resources Ltd (ASX:RTR) is up 4.11% after ongoing scoping drilling at the Earaheedy Project revealed a major feeder fault zone with significant zinc-lead-silver mineralisation along with strong copper at the Chinook Prospect.

Medallion Medals Ltd is 2.33% higher. MM8 has intersected a potentially high-grade zone at the Gem deposit of Kundip Mining Centre (KMC) within the Ravensthorpe Project of Western Australia.

Race Oncology Ltd (ASX:RAC) is up 0.30% having closed its heavily oversubscribed share purchase plan (SPP), raising A$29.7 million from 2,340 shareholders at the A$3.00 issue price.  

Firefinch Ltd (ASX:FFX) is 1.76%. FFX’s drilling results at the Morila Gold Project in Mali indicate the presence of a new high-grade zone.

St George Mining Ltd (ASX:SGQ) is up 1.64%. SGQ has scheduled an early restart of its diamond drilling program at the flagship high-grade Mt Alexander Project in the north-eastern Goldfields of Western Australia.

Read Full Article


Latest articles

Related articles

Leave a reply

Please enter your comment!
Please enter your name here