Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Positive after Wall Street rallies for the first time in four sessions. The ASX 200 sank yesterday to its lowest since late March as iron ore suffered a major sell-off.
ASX futures: up 43 points or 0.62%
Overnight themes:
- US stocks break a three-session losing run as investors prepare for a new corporate earnings season and inflation data later in the week.
- The main indices claw back some of last week's losses as gains in industrials, healthcare, energy and financials offset pressure from some defensive sectors.
- Chipmakers are boosted by "productive" talks between Treasury Secretary Janet Yellen and Chinese officials.
- A new quarterly reporting season starts this week with updates from JPMorgan Chase, Wells Fargo and Citigroup.
- Consumer inflation data on Wednesday will affect whether the Federal Reserve raises benchmark rates later this month.
- Iron ore has its worst session in nine months following environmental curbs on Chinese steel production and further signs yesterday of the China economic recovery stalling. Benchmark prices in Singapore and China both lose more than 3%.
- “Tangshan has ordered steel mills to curb output for all of July to combat worsening air quality. Extreme heat in the north of the country may also lead to slowing construction activity” - ANZ Research
- A Global X exchange-traded fund of battery metal miners rises to its highest since February.
Key events today:
- Consumer sentiment - 10.30 am AEST
- Business confidence - 11.30 am
S&P 500: up 11 points or 0.24%
Dow: up 210 points or 0.62%
Nasdaq: up 25 points or 0.18 %
Dollar: down 0.19% to 66.74 US cents
Iron ore (Dalian): down 3.5% to US$109.94 (largest single-day fall since October)
Brent crude: down 78 US cents or 1% to US$77.69
Gold: down US$1.50 or 0.1% to US$1,931
NYSE Arca Gold Bugs: up 2%
Copper (LME): up 0.15% to US$8,383
Nickel (LME): up 1.15% to US$21,020
Global X Lithium & Battery Tech ETF: up 1.14% (5-month high)
BHP: down 0.97% (US); down 1.13% (UK)
Rio Tinto: down 0.32% (US); down 0.95% (UK)
