Morningtraders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Cautiously positive at the end of a losing week following a mixed night on Wall Street.
ASX futures: up 7 points or 0.1%
Overnight themes:
- Wall Street's main indices finish mixed after China announces wider curbs on Apple iPhones and stubbornly low unemployment benefit claims stoke fears that inflation is not falling fast enough for the Federal Reserve.
- Market heavyweight Apple sheds 2.92%, falling for a second day after China broadens a ban on iPhones among state employees at work. The latest move expands previous curbs in a key market for Apple. Other tech firms with China exposure also fall.
- The Nasdaq falls for a fourth session. The S&P 500 also declines. Apple's lower weighting on the Dow allows the blue-chip average to eke out a gain.
- Fears of further interest rate hikes are sharpened by stronger-than-expected jobless claims. First-time claims for benefits all to 216,000 last week, the lowest number since February. A separate report shows labour costs increased more than expected last quarter.
- “People were hoping the Fed would be on hold for the rest of the year, but it’s possible that we got one or two more rate hikes to come... All things being equal, that’s a little bit of a negative for the stock market, which was expecting the Fed to potentially be done for the year” - ” Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
- The tech sector loses 1.57%. Also weak are materials (-0.44%), industrials (-0.32%), energy (-0.22%) and financials (-0.2%). Defensive sectors advance, including utilities and real estate.
- ASX heavyweights BHP and Rio Tinto sink in overseas trade with iron ore prices after China's state planner said it will increase its supervision of the ore futures and spot markets. The warning follows similar statements from the National Development and Reform Commission in March and April.
- Oil declines in the US for the first time in ten sessions, backing off its highest level since November. Brent crude's win streak ends at seven.
Key events today:
- No major data scheduled here or overseas
S&P 500: down 14 points or 0.32%
Dow: up 58 points or 0.17%
Nasdaq: down 124 points or 0.89%
Dollar: down 0.1% to 63.75 US cents
Iron ore (Dalian): down 1.9% to US$114.15
Brent crude: down 68 US cents or 0.8% to US$89.92
Gold: down US$1.70 or 0.1% to US$1,942.50
NYSE Arca Gold Bugs: down 0.64%
Copper (LME): down 0.79% to US$8,305
Nickel (LME): down 0.41% to US$20,450
Lithium carbonate (China spot): down 0.75% to US$27,644
Global X Lithium & Battery Tech ETF: down 1.83%
BHP: down 2.64% (US); down 1.9% (UK)
Rio Tinto: down 3.27% (US); down 2.64% (UK)
