Lunch Wrap: ASX wobbles; Trump-Xi phone call lifts iron ore but sinks lithium

The ASX rose early then wobbled at lunch. Trade talks boosted miners, but lithium dipped and Tesla copped a beating in a shaky global session. 

The Trump–Xi phone call walloped lithium and rare earths stocks. Picture via Getty Images

• ASX wobbles at lunch but miners rallied early on Trump-Xi call

• Critical minerals sink while Tesla crashes 14pc

• Worley wins job in Alaska, Ora Banda dips

The ASX edged higher in early trade on Friday as the index brushed right up against record territory.

But… it hasn't sustained, wobbling back down again to -0.15% intraday so far.

Miners and energy names did the heavy lifting early, though, after Donald Trump and Xi Jinping finally picked up the phone and agreed to resume trade talks.

Trump called it a “very good call", and markets took that as a sign that China might keep buying iron ore and crude by the boatload.

Iron ore jumped to nearly US$96.50 a tonne, and Brent oil climbed, too. 

But here’s the twist. 

The Trump–Xi thaw, while good for iron ore, actually walloped lithium and rare earths stocks. If China-US trade cools down, then maybe pressure on critical mineral supply eases, too. And that means less panic buying.

Local stocks like Pilbara Minerals (ASX:PLS) and IGO (ASX:IGO) got hammered by 5-6% this morning  on the news. 

Meanwhile, Tesla plunged by 14%, the biggest single-day hit to its market cap, ever. 

Investors scrambled for the exits  after Trump threatened to rip up Elon’s government contracts, claiming the world’s richest man had “gone crazy” since finishing his post at the so-called Department of Government Efficiency.

Musk didn’t exactly go quiet into the night.

He lit up X with claims he was the one who got Trump elected, suggested Trump’s name appears in the Epstein files, and all but challenged him to a cage fight.

Even Bitcoin felt the fallout, sliding 3% to just above US$100k as traders cringed at the chaos.

Back on home soil, Utilities and Energy were the two best sectors this morning:

Source: Market Index

In the large caps space, Worley (ASX:WOR)booked itself a big job, landing a contract with Glenfarne to support engineering works on Alaska’s LNG pipeline. WOR's shares were flat.

Ora Banda (ASX:OBM) got whacked 9% after admitting its full-year gold output is going to fall short due to extended downtime at the Davyhurst project. 

SkyCity Entertainment Group (ASX:SKC) jumped 1% after launching a $330 million lawsuit against Fletcher Building (ASX:FBU) over what it claims was “gross negligence” during construction of a New Zealand convention centre. Fletcher slid 3%, presumably with a team of lawyers now sleeping in the office.

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for June 6 :

Security	Description	Last	%	Volume	MktCap
BMO	Bastion Minerals	0.003	100%	124,237,975	$1,355,441
CZN	Corazon Ltd	0.003	100%	21,386,226	$1,776,858
WC1	West Cobar Metals	0.024	60%	39,757,383	$3,110,692
AXI	Axiom Properties	0.028	56%	30,000	$7,788,846
EM2	Eagle Mountain	0.006	50%	1,927,601	$4,540,149
MGU	Magnum Mining & Exp	0.005	43%	498,430	$3,925,778
GMN	Gold Mountain Ltd	0.002	33%	926,889	$8,429,639
QXR	Qx Resources Limited	0.004	33%	1,583,144	$3,930,987
SRN	Surefire Rescs NL	0.002	33%	1,042,535	$3,729,668
MEM	Memphasys Ltd	0.006	33%	778,755	$8,926,191
IS3	I Synergy Group Ltd	0.004	33%	154,270	$1,502,290
LOC	Locatetechnologies	0.145	32%	1,351,777	$24,886,036
NWM	Norwest Minerals	0.013	30%	6,600,901	$9,683,586
ASM	Ausstratmaterials	0.640	26%	1,276,645	$92,030,396
EDE	Eden Inv Ltd	0.003	25%	610,676	$8,219,762
EVR	Ev Resources Ltd	0.005	25%	58,315	$7,943,347
PIL	Peppermint Inv Ltd	0.003	25%	534,955	$4,552,180
MRR	Minrex Resources Ltd	0.011	22%	2,001,273	$9,763,808
ATG	Articore Group Ltd	0.225	22%	234,067	$52,676,230
OLI	Oliver'S Real Food	0.006	20%	100,000	$2,703,660
BDM	Burgundy D Mines Ltd	0.025	19%	974,970	$29,847,978
HPR	High Peak Royalties	0.059	18%	4,763	$10,402,986

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West Cobar Metals (ASX:WC1) has completed the 100% acquisition of the Mystique Gold Project from IGO in WA’s Fraser Range. The project sits just south of Rumble’s Themis prospect, where standout gold hits include 4m at 22.2g/t. Drilling is now being planned at two key targets – Themis South and Torquata – to test for saprolite and basement gold.

Australian Strategic Materials (ASX:ASM) is gaining momentum at its Korean Metals Plant, locking in new sales of rare earth metals and alloys as global buyers look for supply outside China. ASM has confirmed orders for NdFeB alloy to Noveon Magnetics in the US (15 tonnes) and Germany’s Vacuumschmelze (7.2 tonnes), with first shipments kicking off in June.

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks for June 6 :

Code	Name	Price	% Change	Volume	Market Cap
JAY	Jayride Group	0.001	-50%	907,361	$2,855,778
LNR	Lanthanein Resources	0.001	-50%	2,934,969	$4,887,272
CCO	The Calmer Co Int	0.002	-33%	656,778	$9,034,060
JAV	Javelin Minerals Ltd	0.002	-33%	868,000	$18,378,447
OB1	Orbminco Limited	0.001	-33%	100,000	$4,796,352
SKN	Skin Elements Ltd	0.002	-33%	158,639	$3,225,642
LU7	Lithium Universe Ltd	0.005	-29%	3,039,537	$5,501,857
KNB	Koonenberrygold	0.045	-27%	49,922,090	$63,530,934
HLX	Helix Resources	0.002	-25%	594,904	$6,728,387
VML	Vital Metals Limited	0.002	-25%	4,399,659	$11,790,134
HMD	Heramed Limited	0.009	-25%	5,851,655	$10,507,233
ENT	Enterprise Metals	0.002	-20%	1	$2,945,793
OVT	Ovanti Limited	0.002	-20%	1,809,635	$6,983,788
VRC	Volt Resources Ltd	0.004	-20%	456,393	$23,423,890
RMI	Resource Mining Corp	0.017	-19%	3,783,064	$15,423,520
SNX	Sierra Nevada Gold	0.025	-17%	80,974	$4,939,774
FBR	FBR Ltd	0.005	-17%	1,613,165	$34,136,713
TON	Triton Min Ltd	0.005	-17%	182,233	$9,410,332
ZEU	Zeus Resources Ltd	0.010	-17%	1,048,831	$7,688,078
EMT	Emetals Limited	0.003	-14%	750,000	$2,975,000
HHR	Hartshead Resources	0.006	-14%	947,158	$19,660,775
LSR	Lodestar Minerals	0.006	-14%	50,000	$2,228,967
TMS	Tennant Minerals Ltd	0.006	-14%	2,359,434	$6,691,233

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IN CASE YOU MISSED IT

Vertex Minerals (ASX:VTX) is on track to mine the first gold from the Reward underground gold mine this quarter.

Internationally renowned engineering firm Ausenco has been engaged by RareX (ASX:REE) to conduct initial infrastructure and development studies at the Mrima Hill project.

LAST ORDERS

Locksley Resources (ASX:LKY) will soon list to the OTCQB Venture Markets in the US, after engaging advisory group Viriathus Capital LLC to assist in securing quotation. The company reckons the over-the-counter market listing will increase its visibility, liquidity and access for North American investors, while also supporting the company’s US-based critical mineral strategy.

Neurotech (ASX:NTI) will present its lead product NTI164 at the upcoming International Rett Syndrome Foundation (IRSF) Scientific Meeting. The company will present on its novel full-spectrum medicinal cannabis pharmaceutical, designed to improve symptoms of Rett syndrome, a rare genetic neurodevelopmental disorder.

At Stockhead, we tell it like it is. While Locksley Resources is a Stockhead advertiser, it did not sponsor this article. 

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

Originally published as Lunch Wrap: ASX wobbles; Trump-Xi phone call lifts iron ore but sinks lithium