Lunch Wrap: ASX dragged down by sinking China steel and flying missiles

The ASX has dropped on Friday as China’s steel slump hit miners and Middle East tensions flare.

ASX sinks as China steel sinks miners. Picture via Getty Images

• ASX falls as China steel sinks miners

• Iran hits Israeli labs with cluster bombs

• Oil jumps then eases on Trump's comments

The ASX was down 0.55% at around lunch time in the east on Friday, and you can’t blame Wall Street for this one.

The Yanks were out celebrating Juneteenth with the markets shut. But Europe was wide awake, and the headlines coming out of the Middle East were enough to wipe the smile off any trader’s face.

Iran is apparently lobbing missiles with cluster bombs into Israeli suburbs. These things burst mid-air and scatter mini-bombs over a wide area, with one landing in someone’s backyard in Azor.

Tehran also targeted Israel’s scientific crown jewel, the Weizmann Institute of Science. Years of research in life sciences and physics gone up in smoke.

With that as the backdrop, Brent crude spiked as punters braced for a possible US strike on Iran.

But then Trump walked it back a bit. His team now reckons there’s a “substantial chance” of negotiation, with a decision “within two weeks”.

Those comments took the edge off, with oil prices coming back down a tad.

Elsewhere, the Bank of England kept rates on hold at 4.25% last night. Three policy members wanted a cut, and there’s now a decent chance of a trim come August.

Over in Russia, the Kremlin's economy minister just admitted the country’s “on the brink” of recession, pointing to weakening indicators. Not something you usually hear from Putin’s camp.

Back home, the ASX was already on the ropes before the opening bell thanks to China’s steel numbers.

Steel production slumped nearly 7% in May, way below expectations, and that sent our iron ore stocks tumbling once again.

Rio Tinto (ASX:RIO) fell 0.5% and Bluescope Steel (ASX:BSL) dropped 1% this morning.

And, Web Travel Group (ASX:WEB) slipped 1.5%, though it wasn’t all bad. Former Virgin Australia boss Paul Scurrah is joining the board alongside retail veteran Melanie Wilson from JB Hi-Fi and Oroton.

This is where things stood at around 12:40pm, AEST:

Source: Market Index

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for June 20 :

Security	Description	Last	%	Volume	MktCap
GMN	Gold Mountain Ltd	0.002	50%	442,562	$5,619,759
JAV	Javelin Minerals Ltd	0.003	50%	270,825	$12,252,298
PV1	Provaris Energy Ltd	0.014	40%	2,589,991	$6,980,013
RNX	Renegade Exploration	0.004	33%	321,227	$3,865,090
BMO	Bastion Minerals	0.002	27%	986,000	$1,419,960
CAZ	Cazaly Resources	0.025	25%	3,014,837	$9,226,060
ALM	Alma Metals Ltd	0.005	25%	707,408	$6,345,381
AOK	Australian Oil.	0.003	25%	17,657	$2,003,566
AUK	Aumake Limited	0.003	25%	176,755	$6,046,718
CR9	Corellares	0.003	25%	3,635	$2,011,213
EDE	Eden Inv Ltd	0.003	25%	1,150,129	$8,219,762
FIN	FIN Resources Ltd	0.005	25%	100,000	$2,779,554
FLC	Fluence Corporation	0.045	25%	1,830,658	$39,071,613
GGE	Grand Gulf Energy	0.003	25%	1,458,526	$5,640,850
MEM	Memphasys Ltd	0.005	25%	1,004,099	$7,934,392
SRJ	SRJ Technologies	0.005	25%	113,950	$2,422,312
ALR	Altairminerals	0.003	20%	312,349	$10,741,860
BLU	Blue Energy Limited	0.006	20%	3,122,353	$9,254,868
BGE	Bridgesaaslimited	0.014	17%	61,111	$2,398,310
NAE	New Age Exploration	0.004	17%	50,877	$8,117,734
W2V	Way2Vatltd	0.007	17%	500,000	$10,196,818
E79	E79Goldmineslimited	0.023	15%	473,530	$3,168,253
MCA	Murray Cod Aust Ltd	1.000	15%	59,465	$92,023,850
BPH	BPH Energy Ltd	0.008	14%	625,500	$8,527,630
MPR	Mpower Group Limited	0.008	14%	70,398	$2,405,923

Provaris Energy (ASX:PV1) has signed an MOU with global shipping heavyweight “K” LINE to help commercialise its hydrogen transport vessels, the H2Neo and H2Leo. The tie-up gives Provaris access to technical and commercial know-how as it pushes into Europe, where demand for hydrogen is set to boom.

The two will spend the next 12 months working on ship development, cost models and possible commercial deals. It also supports Provaris’ supply chain plans in Norway and its earlier hydrogen delivery deals with German utilities. Compressed hydrogen is gaining traction as a cheap, scalable way to ship gas across short marine distances.

Bastion Minerals (ASX:BMO) has appointed John Ribbons as its new company secretary, following the resignation of Justin Clyne. Ribbons will take on the role alongside his CFO duties, bringing over 25 years of experience in governance, compliance, and the resources game. The company says the move will streamline operations and save costs.

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks for June 20 :

Code	Name	Price	% Change	Volume	Market Cap
ADD	Adavale Resource Ltd	0.001	-50%	61,313	$4,574,558
BP8	Bph Global Ltd	0.001	-50%	3,216,693	$2,101,969
BCB	Bowen Coal Limited	0.195	-44%	1,764,116	$37,715,145
RPG	Raptis Group Limited	0.090	-44%	298,705	$56,109,577
BEL	Bentley Capital Ltd	0.008	-33%	7,851	$913,535
PKO	Peako Limited	0.002	-33%	925,298	$4,463,226
RLC	Reedy Lagoon Corp.	0.001	-33%	135,000	$1,165,060
SHP	South Harz Potash	0.002	-33%	310,000	$3,308,186
EEL	Enrg Elements Ltd	0.002	-25%	532,818	$6,507,557
WEC	White Energy Company	0.035	-20%	133	$13,711,276
ATX	Amplia Therapeutics	0.195	-17%	20,968,141	$91,168,877
AMS	Atomos	0.005	-17%	58,076	$7,290,111
DRE	Dreadnought Resources	0.010	-17%	43,202,725	$60,954,000
ECT	Env Clean Tech Ltd.	0.003	-17%	5,705,686	$12,020,306
3PL	3P Learning Ltd	0.560	-16%	34,796	$182,847,370
ADR	Adherium Ltd	0.006	-14%	100,000	$5,307,296
AS2	Askarimetalslimited	0.006	-14%	400,000	$2,829,195
ASP	Aspermont Limited	0.006	-14%	350,000	$17,312,314
AXI	Axiom Properties	0.030	-14%	30,000	$15,144,978
AYT	Austin Metals Ltd	0.003	-14%	100,000	$5,509,670
EV1	Evolutionenergy	0.012	-14%	1	$5,077,107
M24	Mamba Exploration	0.012	-14%	30,000	$4,132,319
IR1	Irismetals	0.100	-13%	6,342	$19,832,829
ODY	Odyssey Gold Ltd	0.020	-13%	2,769,548	$20,674,036
BNR	Bulletin Res Ltd	0.054	-13%	107,527	$18,204,026

Bowen Coking Coal (ASX:BCB) collapsed 45% after warning it might have to pause its flagship Burton Mine. BCB said coal prices are in the gutter, and Queensland’s royalty regime is, in Bowen’s words, flat-out “unsustainable”.

IN CASE YOU MISSED IT

QMines (ASX:QML) is in the final stages of acquiring the Mount Mackenzie gold-silver project after completing due diligence.

Anson Resources (ASX:ASN) has built a static and dynamic Petrel model for its Green River lithium project in Utah that will help determine the location, design and depth of extraction and disposal wells.

Western Gold Resources (ASX:WGR) is transitioning from explorer to producer after inking a binding milling agreement to fast track the Gold Duke mine.

Magnetic Resources (ASX:MAU) has signed a native title agreement for its Lady Julie gold project near Laverton, WA, clearing the way for mining leases to be issued.

Nimy Resources (ASX:NIM) is on track to unveil its maiden Block 3 gallium resource in the December quarter after completing phase 2 and 3 reverse circulation drill campaigns.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.