Morning traders. Thanks @ttward and lounge lizards.
Overnight round-up and day ahead:
Investors face a second day of heavy selling after recession fears sent the Dow tumbling almost 500 points.
ASX SPI200 index futures fell 119 points or 1.8 per cent to 6494 as US stocks crumbled. The benchmark Australian index, the ASX 200, slumped 103 points or 1.5 per cent yesterday and faces another challenging session today after major US stock indices broke through key technical support levels.
The Dow skidded 494 points or 1.86 per cent and closed below its 50-day and 100-day moving averages. The broader S&P 500 skidded 53 points or 1.79 per cent, also ending under its 100-day moving average. The Nasdaq lost 123 points or 1.56 per cent.
The Dow has given up more than 800 points in two sessions as Wall Street made its worst start to a quarter in more than a decade. The trigger for last night's carnage was a report showing employment growth was faltering. The private sector added just 135,000 new hires last month, short of the 152,000 expected by economists. In addition, previously-stated figures for August were revised sharply lower.
While the report was far from disastrous, it compounded fears planted by Tuesday's dire manufacturing data that the US economy is losing momentum. Monthly job growth over the past three months has fallen to an average 145,000 from 214,000 for the same time period last year. A report on Tuesday night showed US factory activity had contracted to its weakest level in a decade. The deteriorating data piles pressure on the White House to secure some evidence of progress when trade negotiators meet their Chinese counterparts in Washington next week.
Australia's biggest miners were caught in a 2.5 per cent sell-off in the US materials sector. BHP's US-listed stock shed 2.71 per cent and its UK-listed stock 4.09 per cent. Rio Tinto lost 3.15 per cent in the US and 4.65 per cent in the UK. Chinese iron ore markets were closed for the 70th anniversary of the People's Republic. The spot price last traded at $US93.90 a ton.
Oil plumbed two-month lows as traders sold assets anchored to global growth. Brent crude settled $1.20 or 2 per cent lower at $US57.69 a barrel.
Copper eased 0.2 per cent on the London Metal Exchange, but other industrial metals fared better. Lead put on 0.3 per cent, nickel 1.2 percent, tin 1.9 per cent and zinc 0.8 per cent. Aluminium fell 2.1 per cent.
Gold regained the $US1,500 an ounce level as traders piled into traditional havens. Gold for December delivery settled $18.90 or 1.3 per cent ahead at $US1,507.90.
The dollar was caught between the crosswinds of a falling greenback and broader weakness among so-called "commodity currencies" exposed to falling demand for raw materials. The Aussie was broadly steady at 67.06 US cents.
A difficult session ahead for investors, with futures trading suggesting the index will unwind the gains of the last month. August trade figures are due this morning, but are unlikely to have a major impact on the glum market mood. Chinese markets remain closed for holidays. Wall Street is acutely sensitive to economic data this week, which means the spotlight will be on tonight's monthly report on the strength of services industries.
Breakfast
We're going to need something hearty to get us through this session. Get stuck in - there may not be time for lunch.
