Morning traders. Thanks loungers, especially @Ravgnome. Outlook...

Morning traders. Thanks loungers, especially @Ravgnome.


Outlook for the day: Neutral/mildly negative following a volatile US session after the Federal Reserve said another interest rate hike was "unlikely".

ASX futures: down five points or 0.07%


Overnight themes:

• Wall Street's main stock indices finish mixed at the end of a wild swing session after the Federal Reserve leaves its benchmark interest rate unchanged and indicates it still expects its next move to be a cut.
• Stocks initially surge after Fed Chair Jerome Powell appears to rule out additional hikes despite signs that inflation is increasingly sticky.
• “I think it’s unlikely that the next policy rate move will be a hike,” Powell says. “I’d say it’s unlikely.”
• The S&P 500 soars 1.2% in minutes, then collapses to a loss of 0.34%. The Nasdaq Composite swings from negative territory to a fleeting gain of 1.7% and back again to a loss of 0.33%. A brief 570-point rally in the Dow contracts to a final gain of 87 points or 0.23% by the close.
• The Fed's decision to leave the Federal funds target rate unchanged at 5.25% - 5.5% was unanimous, but the accompanying statement indicated policy-makers are increasingly concerned by recent inflation readings.
• "In recent months, there has been a lack of further progress towards the Committee's 2% inflation objective," the Fed statement said.
• In his press conference, Powell said, "Inflation is still too high. Further progress in bringing it down is not assured and the path forward is uncertain... It is likely that gaining greater confidence [to cut rates] will take longer than previously expected."
• Stock investors were encouraged by a retreat in treasury yields. The 10-year yield dipped briefly below 4.6%, defying bearish predictions that it could hit 5% if the Fed signalled additional hikes were still on the table.
• A report overnight showed job openings declined to a three-year low in March, a move Powell described as the labour market normalising. Wage pressures in a tight labour market have been one of the drivers of inflation.
• The night's best returns came from the rate-sensitive utilities sector +1.14% and communication services, up 0.84% after a trading update from Amazon. The materials sector gained 0.5%, health 0.25% and real estate 0.12%.
• The US energy sector slumps 1.6% as oil falls for a third session. Brent crude drops 3.4% after US domestic stockpiles unexpectedly jump. Energy prices have reversed this week as ceasefire talks appeared to gain momentum in the Middle East.
• Metal prices fell in London before Powell's "hike unlikely" comment triggered a sell-off in the greenback. Copper declined 0.94%, nickel gave up 1.43% and zinc, tin and lead all lost more than 1%. Volumes were light as China started a Labour Day holiday that continues through the weekend.
• US gold miners are boosted by a rebound in the yellow metal as the US dollar hits the skids. Gold futures were lately up almost 1.2% and back near US$2,330 an ounce after trading as low as US$2,291.70. The NYSE Arca Gold Bugs Index gains 0.71%.
• The Australian dollar rallies 0.72% against the greenback.
• Bitcoin plunges 6% to its lowest since late February.

Key events today:

• Building approvals - 11.30 am AEST
• Trade balance - 11.30 am
• China market holiday

S&P 500: down 17 points or 0.34%

Dow: up 87 points or 0.23%

Nasdaq: down 52 points or 0.33%

Dollar: up 0.72% to 65.21 US cents

Brent crude: down US$2.89 or 3.4% to US$83.44

Gold: up US$8.10 or 0.35% to US$2,311

NYSE Arca Gold Bugs: up 0.71%

Bitcoin: down 6.02% to US$59,166

Copper (LME): down 0.94% to US$9,897

Nickel (LME): down 1.43% to US$18,950

Uranium (spot price): up 2.16% to US$93

Lithium carbonate (China spot): down 0.07% to US$15,422

Global X Lithium & Battery Tech ETF: up 0.55%

BHP: down 0.29% (US); down 0.72% (UK)

Rio Tinto: down 0.49% (US); down 0.84% (UK)