Outlook for the day: Positive for a second day after Wall Street builds on Monday's rebound.
ASX futures: up 35 points or 0.52%
Overnight themes:
US stocks advance ahead of a Federal Reserve interest rate decision and a slew of economic data tonight. A pause in the rates rally encourages bargain-hunters to take advantage of recent share market weakness.
The Fed starts a two-day meeting that is widely expected to leave benchmark rates on hold tonight. CME's FedWatch tool puts the odds on "hold" at 99%. The 10-year yield treasury yield, a proxy for mortgage rates, hovers just below last week's 16-year high.
Real estate and financials outperform as a broad rally lifts all sectors.
Bellwether stock Caterpillar sheds 6.69% after flagging weak growth next quarter.
Wall Street's "fear gauge", the VIX or Volatility Index, drops below the long-term average, suggesting the latest rates-fuelled panic is diminishing.
Despite last night's gains, the main indices fall for a third straight month for the first time since 2020. The S&P 500 loses 2.2%. The Dow gives up 1.4% and the Nasdaq more than 2%.
Disappointing Chinese factory data drags on industrial metals, but iron ore overcomes initial pressure in China. Steel production falls further into contraction territory, according to yesterday's steel industry PMI (October: 45.6 vs September 45.8). Dalian-traded ore gains 0.34%, while the Singapore benchmark eases 0.1%.
Oil retreats as the "war premium" imposed by the Israel-Hamas conflict continues to evaporate. Prices ease as crude supplies remain largely unaffected so far, according to industry reports.
Dow: up 124 points or 0.38%
Nasdaq: up 62 points or 0.48%
Dollar: down 0.4% to 63.43 US cents
Iron ore (Dalian): up 0.34% to US$122.80
Brent crude: down US$1.33 or 1.5% to US$85.02 (new front-month contract)
Gold: down US$11.30 or 0.56% to US$1,994.30
NYSE Arca Gold Bugs: down 2.28%
Copper (LME): down 0.26% to US$8,119
Nickel (LME): down 2.19% to US$18,095
Lithium carbonate (China spot): down 0.6% to US$22,987
