Market Highlights: Airbnb Crash, Fed Indexes and 5 ASX Small Caps to Watch on Wednesday

• Australian stocks will open flat on Wednesday after Wall St’s muted overnight session
• The Fed will deliver its rate decision later tonight
• Airbnb revenue disappoints

Australian stocks are set to open flat on Wednesday. As of 8:00 a.m. AEST, the ASX 200 Dec futures contract was pointing slightly higher by 0.05%.

In New York overnight, major U.S. stock indexes fell less than 1% as investors brace for a key Fed decision tomorrow.

The highlight was Nasdaq-listed Airbnb, which fell 6% after the bell following a disappointing fourth-quarter outlook.

The company said the pace of bookings will “moderate slightly” and expects fourth-quarter revenue to be $1.88 billion, below estimates of $1.86 billion.

FOMC members have begun a two-day huddle that will determine the next rate move. Analysts are expecting another giant 75bp move, and they will be watching Fed Governor Jerome Powell’s wording closely.

It will be difficult for the Fed to deliver a dovish market tomorrow as new data releases continue to paint a buoyant economy.

In JOLT job vacancies data released overnight, vacancies rose by 437,000 to 10.7 million in September. The US manufacturing ISM report also came in better than expected, signaling that the goods sector of the economy is doing very well.

US Treasury yields have climbed in recent days in anticipation of a hawkish move by the Fed.

Back home, the RBA also raised its official exchange rate yesterday, by 0.25% to 2.85%, broadly in line with expectations.

Chris Siniakov, portfolio manager of Franklin Templeton Fixed Income, has this to say:

“Consumer confidence is now at levels previously associated with recessions. History has shown that behaviors change gradually, then suddenly. We look to 2023 with great caution,” he said.

In other markets, crude prices jumped 2% after rumors that China was preparing for a full reopening in March 2023. Brent was trading at US$94.75 a barrel.

But OANDA analyst Edward Moya said “energy supply risks remain high after reports that Iran was planning an attack on targets including Saudi Arabia and northern Iran. Iraq”.

Gold also rose 1% to US$1,647.80 an ounce, while spot iron ore climbed 1% to US$80.15 a tonne.

Bitcoin continues to hover above the US$20,000 level ahead of the Fed, now trading at US$20,480.

Meanwhile, Golden State Warriors point guard Stephen Curry reportedly trademarked the “Curryverse” on Oct. 26, according to various news sources and an official US request.

Learn more about this story here on Coinhead.

Looking ahead to today’s ASX session, building approvals data for September is expected to be released.

5 ASX Small Caps to Watch Today

Halo Food (ASX:HLF)
Halo’s wholly-owned subsidiary, The Healthy Mummy, will see its products distributed nationally through Woolworths supermarkets in Australia. Woolworths will be shelving three main THM smoothie powder products from the first quarter of CY 2023. The sales value of the product is expected to be approximately $2.5 million in the first year.

Clearview Health (ASX:CVW)
The financial services company has completed the strategic review process it launched in September 2021 and has decided not to proceed with any takeover offers received by the company. Clearview has also published a guide. Based on its year-to-date performance, Clearview says it is on track to achieve underlying NPAT growth in FY23 in the range of 28.5 to 30. millions of dollars.

Widgie Nickel (ASX:WIN)
Lithium-focused drilling has begun on the Faraday prospect. Six holes totaling 740 m are to be followed during the initial rock chip sampling. High-grade lithium-bearing pegmatites recently identified at Faraday returned up to 3.70% Li2O from rock chip sampling.

Altamine (ASX:AZI)
The Galeria exploration permit, very promising for lithium in geothermal brines, has been granted by the regional government of Lazio for an initial period of two years. Altamin claims that the geothermal systems of Tuscany and Lazio are among the most productive and promising in Italy.

Indiana Resources (ASX: IDA)
Assays were returned from the August 2022 Minos and Ariadne drilling program, with significant results including 10m at 4.40 g/t Au from 123m and 15m at 1.97 g/t Au at from 91 m. Further RC drilling is planned at Minos and Ariadne for early December.