S&P/ASX 200 drops 1.55% as global markets rush to reconnect with reality

S&P/ASX 200 (INDEXASX:XJO) is trading 1.55% down at 5868 points mid-day as bearish mood gripped global markets due to concerns of a second wave of COVID-19 cases. The pan-European STOXX Europe 600 (INDEXSTOXX:SXXP) ended yesterday down by 4.1% - its fourth straight daily decline. In the US, the Dow Jones Industrial Average (INDEXDJX:.DJI) fell by 1,861 points or 6.9% and the S&P 500 Index (INDEXSP:.INX) dropped 5.9%. Weak fundamentals The key factor behind the losses was the view that the share market and the economy had become disconnected – especially in the US. Global share markets have recently posted solid gains but economic fundamentals and increasingly stretched valuations haven’t justified the size of the gains. Demand for oil may not rise as fast as expected Oil extended heavy overnight losses on a surge in US coronavirus cases that has raised the prospect of a second wave of the outbreak weakening demand from the world's biggest consumer of crude and fuel. West Texas Intermediate is down US$1.32, or nearly 4% per cent, at US$35.02 a barrel after falling more than 8% on Thursday. Australian energy stocks have taken a beating today with Santos Ltd (ASX:STO) down 3.39%, Origin Energy Ltd (ASX:ORG) dropping 3.68% and Woodside Petroleum Limited (ASX:WPL) down 5%. Top gainers on the ASX today include Fe Limited (ASX:FEL) (+25.00%), Titanium Sands Ltd (ASX:TSL) (+9.72%), Musgrave Minerals Ltd (ASX:MGV) (+7.89%), Cipherpoint Ltd (ASX:CPT) (+17.39%) and Australian Mines Limited (ASX:AUZ) (+12.50%). Proactive news headlines: archTIS completes $2.24 million capital raising to drive Kojensi Platform growth archTIS Ltd (ASX:AR9) has raised $590,750 from a share purchase plan (SPP), which follows a $1.65 million placement completed in May with funds to continue driving pipeline growth and execution of sales of the Kojensi Platform. Around 10.7 million new shares are expected to be issued at a price of 5.5 cents per share by Monday, June 15, 2020. Core Lithium closes share purchase plan early after attracting strong support Core Lithium Ltd (ASX:CXO) has closed its $1.5 million share purchase plan (SPP) early after receiving strong support with applications in excess of $2.1 million. This follows a successful placement last month to institutional and sophisticated investors to raise a total of $5.5 million before costs and the recently secured first European offtake MoU for the Finniss Lithium Project in the Northern Territory. Yandal Resources sets sights on raising $3.3 million to accelerate gold exploration Yandal Resources Ltd (ASX:YRL) aims to raise to around $3.342 million in a pro-rata non-renounceable rights offer with funds to accelerate exploration of its highly prospective gold projects in Western Australia. The company will issue up to 13.369 million shares at 25 cents per share in the offer on the basis of one new share for every five shares. Piedmont Lithium raises US$13 million after completing US public offering Piedmont Lithium Ltd (ASX:PLL)( NASDAQ:PLL) has completed its US public offering of 2.065 million American Depositary Shares (ADS), each representing 100 of its ordinary shares, for gross proceeds of US$13 million (around AU$18.6 million). This includes the exercise of the underwriters’ over-allotment option, at an issue price of US$6.30 per ADS. Lithium Australia has ‘novelty and inventiveness’ of LieNA® extraction technology confirmed Lithium Australia NL (ASX:LIT) is progressing closer to a patent grant for its LieNA® extraction technology for recovering lithium from fine and variable-grade spodumene. On April 6, 2020, the company was granted Patent Number 2017306576 with priority details 2016903041, effective from August 2, 2016, and has now received positive feedback on the patentability of the technology's second-generation. Perseus Mining added to S&P/ASX 200 Index in rebalance Perseus Mining Limited (ASX:PRU) (TSE:PRU) (OTCMKTS:PMNXF) is a major beneficiary of S&P Dow Jones Indices rebalance in the S&P/ASX indices being added to the S&P/ASX 200 Index. This change will be effective at the open of trading on June 22, 2020. In the past 12 months the market cap of the West African gold miner, developer and explorer has increased to approximately A$1.448 billion. Kin Mining raising $9.9 million to underpin next major exploration phase at Cardinia Gold Project Kin Mining Ltd (ASX:KIN) is undertaking a non-renounceable pro-rata entitlement offer to raise up to $9.9 million with funds to underpin the next major phase of exploration at Cardinia Gold Project (CGP) in Western Australia. Kin has received confirmation from its two largest shareholders that they intend to subscribe for their full entitlements in the entitlement offer. Collectively, these shareholders hold around 39% of Kin’s shares on issue.