Outlook for the day: Positive after US stocks eke out slender gains, and iron ore and metals rally.
ASX futures: up 28 points or 0.37%
Overnight themes:
US stocks inch higher during a "news-lite" session. The S&P 500 edges 0.14% closer to within 0.5% of a record.
The market's eight-week up-trend continues as the odds on a rate cut in March rise to 73.2%.
"When you have very few catalysts and minimal trading activity you tend to see continuation of the trends" - Chuck Carlson, chief executive officer at Horizon Investment Services (per Reuters).
The Dow is the best of the three major indices, rising 0.3% to a new high as Walmart, Amgen and Caterpillar advance. Market movements are modest, with none of the Industrial Average's 30 component stocks moving more than 1% in either direction.
Defensive sectors outperform. Real estate, health and consumer staples top the leader-board. Energy and communication services bring up the rear. The financial and materials sectors both gain roughly 0.25%.
A retreat in oil pulls the energy sector down 0.53%. Oil prices decline after the US benchmark, West Texas Intermediate crude, offers a bearish death cross pattern (a possible indication to technical traders that recent price weakness is developing into a longer-term downtrend). WTI crude drops 1.93%. The international benchmark, Brent crude, sheds 1.75%.
Gold hits an all-time high in London as traders anticipate interest rate cuts next year. US gold futures rally almost 1% to US$2,089.30 an ounce. The US dollar index slides to its lowest in five months.
Iron ore gains 0.5% in both China and Singapore trade after Chinese industrial firms post double-digit profit improvements in November.
US stocks are on track to record substantial gains for the year. The S&P 500 is on track for an annual tally of 24%. The Dow is ahead 13%. The Nasdaq is set for a gain of around 44%, its best return since 2003.
Key events today:
US house sales, jobless claims - tonight
S&P 500: up 7 points or 0.14%
Dow: up 111 points or 0.3%
Nasdaq: up 25 points or 0.16%
Dollar: up 0.3% to 68.44 US cents
Iron ore (Dalian): up 0.5% to US$137.93
Brent crude: down US$1.42 or 1.75% to US$79.65
Gold: up US$19.30 or 0.93% to US$2,089.10
NYSE Arca Gold Bugs: up 1.1%
Bitcoin: up 2.69% to US$43,461
Copper (LME): up 1.43% to US$8,696
Nickel (LME): up 2.11% to US$16,900
Uranium: up 1.51% to US$93
Lithium carbonate (China spot): US$14,000 (last price: Dec 21)
