Australian shares fell 23.90 points or 0.28% to 8,399.10 after lunch today. Losing the race in the afternoon were Perpetual Ltd and Pro Medicus Ltd, down 8.79% and 8.35% respectively.
The ASX200 index has lost 1.13% for the last five days but sits 1.36% below its 52-week high.
The only clear winner across the sectors in afternoon trade was Materials, which was up 3.21%, though Energy was also keeping its head above water, up 1.40%.
Information Technology was a considerable drag in the opposite direction, down 4.09% just after lunch.
Nvidia’s China fortunes
Investors may need to reassess Nvidia's valuation as the chipmaker faces new challenges stemming from escalating US-China tensions, says Martin Peers of The Information.
China's recent antitrust investigation into Nvidia – following US restrictions on advanced chip exports – could pose a significant risk to the company's revenue, particularly given that sales to China accounted for 15% of its most recent quarterly revenue.
“This antitrust inquiry suggests Nvidia could face bigger problems there,” Peers notes.
“It’s a good example of how increasingly tense relations between the US and China are affecting companies that operate in both places.”
The obvious parallel is ByteDance’s ongoing regulatory struggle in the US. TikTok, its flagship platform, is seeking a Supreme Court injunction to block legislation that would force it to sell or cease operations in the US.
While ByteDance's valuation in secondary markets reflects these regulatory pressures, standing at a modest 1.5 times expected revenue, the impact is poised to hurt US investors as much as Chinese stakeholders.
The ripple effects of these tensions extend to other businesses like Amazon (NASDAQ:AMZN), where many Chinese merchants are diversifying their operations, and to broader trade dynamics, which could intensify with potential policy shifts under a Trump administration. As Peers observes, “Investors have to be prepared for anything”.
On a separate note, Peers highlights the challenges that have for many years plagued traditional advertising agencies in the digital landscape.
The merger of Omnicom and Interpublic Group aims to bolster their position but remains overshadowed by tech giants like Google (NASDAQ:GOOGL) and Meta, whose dominance in digital advertising dwarfs the combined revenues of these legacy firms. "Nothing they do can help them turn back the clock," Peers said.
Small cap gains
As it continues on the path to restarting the Endeavor Silver-Zinc Mine near Cobar in NSW, Polymetals Resources Ltd (ASX:POL) is reaching new heights, today hitting the three-figure mark of $1.00. This new record was 12.36% higher than the previous close.
Another strong mover among the small caps was FireFly Metals Ltd (ASX:FFM) on the back of its best intersection yet from the Green Bay Copper-Gold Project in Canada with shares up as much as 14.56% to $1.157.
Apollo Minerals Ltd (ASX:AON, OTC:APOMF) was as much as 15.4% higher to $0.015, Latin Resources Ltd (ASX:LRS, OTC:LRSRF) hit $0.165, an increase of 13.8% on the previous close, Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF) climbed as much as 11.35% to $0.54, Lumos Diagnostics Holdings Ltd (ASX:LDX, OTC:LDXHF) increased 10.26% to $0.043, Nova Minerals Ltd (ASX:NVA, NASDAQ:NVA) reached $0.28, a 9.81% increase, and Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) lifted 6.07% to $0.525.
The five at five
FireFly Metals drills best hole yet at Green Bay's Ming Mine of 86.3 metres at 3.7% copper equivalent
The latest drilling by FireFly Metals Ltd (ASX:FFM) at the Ming Mine within the Green Bay Copper-Gold Project in Newfoundland, Canada, has returned very thick intersections with exceptional grades, outlining a rich area of mineralisation which will form part of the next mineral resource update.
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archTIS inks A$704,000 contract with Accenture (NYSE:ACN) to trial NC Protect in Microsoft (NASDAQ:MSFT) 365 environment
archTIS Ltd (ASX:AR9, OTCQB:ARHLF)) has signed a A$704,000 services contract with Accenture Australia to trial using the company’s data security suite NC Protect within a Microsoft 365 email environment.
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Far East Gold receives A$3.5 million in second tranche of Xingye investment
Far East Gold Ltd (ASX:FEG, OTC:FEGDF) has boosted its war chest to advance world-class gold and copper assets in Indonesia on receiving the second almost A$3.5 million tranche of a considerable investment by Xingye Gold (Hong Kong) Mining Company Limited.
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Riversgold submits Mining Lease application for highly promising Northern Zone Gold Project
Riversgold Ltd (ASX:RGL) has lodged a Mining Lease application (M25/389) for its Northern Zone Gold Project, 25 kilometres east-southeast of the Kalgoorlie Super Pit in Western Australia.
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Anteris Technologies subsidiary ATGC launches US IPO for Nasdaq listing
Anteris Technologies Ltd (ASX:AVR, OTC:AMEUF) subsidiary Anteris Technologies Global Corp (ATGC) has launched its US initial public offering (IPO) for 14.8 million shares of common stock, with an additional 2.22 million shares available for underwriters through a 30-day option.
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On your six
Constellation Resources: A diversified explorer with a focus on Western Australia
Constellation Resources Ltd (ASX:CR1) is focusing on the Ularring Project, which comprises tenements covering 187 square kilometres in a region known for large-scale intrusion-related copper-gold systems, similar to the Boddington Copper-Gold Mine and Caravel Copper Project.
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The one to watch
Just the Facts: Cobre expands Botswana copper potential with promising NCP56 results
Proactive’s Tylah Tully breaks down ‘Just the Facts’ of the latest news from Cobre Ltd (ASX:CBE). The company has provided an update on its 2024 exploration program at the Ngami Copper Project (NCP) in Botswana’s Kalahari Copper Belt.
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