Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Mildly negative following a third straight decline on Wall Street and a mixed night for commodity markets.
ASX futures: down 10 points or 0.14%
Overnight themes:
- US stocks fall for third night after Federal Reserve Chair Jerome Powell warns further rate hikes are likely.
- The big tech stocks that lifted the market to 14-month highs weigh the most. Nvidia, Tesla, Microsoft and Alphabet all lose at least 1%. FedEx drops after warning of waning global demand.
- In testimony before a House committee, Powell says the Fed remains "strongly committed" to bringing inflation back within target: “Nearly all [Federal Open Market Committee] participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year,” he says.
- The odds on a rate rise next month climb to 74%, according to CME's FedWatch tool.
- Growth sectors lead the sell-off. Real estate, financials also weak. Energy, utilities and industrials all gain at least 0.5%. Materials, consumer staples and health also edge higher.
- "It seems the market is catching its breath after a huge start to the month. Historically June isn’t a very strong month for stocks, but this year could go down as one of the strongest Junes ever; so a small break in the run stocks have had is perfectly normal" - Ryan Detrick, chief market strategist, Carson Group.
Key events today:
- US jobless benefit claims, home sales, further testimony from Fed Chair Powell - tonight
S&P 500: down 23 points or 0.52%
Dow: down 102 points or 0.3%
Nasdaq: down 165 points or 1.21%
Dollar: up 0.1% to 67.96 US cents
Iron ore (Dalian): down 1% to US$110.86
Brent crude: up US$1.22 or 1.6% to US$77.12
Gold: down US$2.80 or 0.1% to US$1,944.90
NYSE Arca Gold Bugs: down 0.46% (3-month low)
Copper (LME): up 0.5% to US$8,591
Nickel (LME): down 3.28% to US$21,240
Global X Lithium & Battery Tech ETF: down 1.18%
BHP: down 0.67% (US); down 0.74% (UK)
Rio Tinto: down 0.8% (US); down 0.93% (UK)
