Morning traders. Thanks loungers, especially @Ravgnome, @Patterns and @FlashPoint.
Outlook for the day: Negative following mild falls in the US ahead of inflation data and as politicians squabble over the national debt limit.
ASX futures: down 21 points or 0.29%
Overnight themes:
- US stocks ease in cautious trade ahead of twin inflation reports this week that could determine the outlook for interest rates.
- The April Consumer Price Index is due tonight, followed by the Producer Price Index tomorrow night. Investors seek further evidence that inflation is cooling, allowing the Federal Reserve breathing space to leave benchmark rates on hold.
- Markets keep a wary eye on a stalemate in Washington over the national debt limit. President Joe Biden hosts Republican House Speaker Kevin McCarthy and other congressional leaders.
- “Wall Street is hesitant to take on any major positions until we find out the outcome to both debt ceiling talks at the White House and on whether or not inflation is proving to be very sticky” - Ed Moya, senior market analyst at Oanda.
Key events today:
- US April consumer inflation data - tonight
S&P 500: down 19 points or 0.46%
Dow: down 57 points or 0.17%
Nasdaq: down 77 points or 0.63%
Dollar: down 0.25% to 67.63 US cents
Iron ore (Dalian): up 1.3% to US$103.30
Brent crude: up 43 US cents or 0.55% to US$77.44
Gold: up US$9.70 or 0.48% to US$2,042.90
NYSE Arca Gold Bugs: down 0.03%
Copper (LME): up 0.3% to US$8,605
Nickel (LME): down 2.2% to US$24,000
Global X Lithium & Battery Tech ETF: down 0.33%
BHP: down 0.64% (US); down 0.56% (UK)
Rio Tinto: down 0.05% (US); up 0.7% (UK)
