Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Neutral/mildly positive despite a late fade on Wall Street ahead of tonight's anxiously-awaited July inflation report.
ASX futures: up four points or 0.05%
Overnight themes:
- US stocks fall away in the final hour as rising energy prices add to inflationary worries. Investors reluctant to add to positions ahead of CPI data tonight that could determine whether the Federal Reserve raises rates again.
- “Markets are focused on whether or not inflation is falling fast enough to allow the Fed to stop hiking rates. It’s been decelerating, but it’s still too high” - Bill Merz, head of capital markets research at U.S. Bank Wealth Management.
- The rates debate within the Fed continues in public with Governor Michelle Bowman saying further increases were likely, while Philadelphia Fed President Patrick Harker says rates may be high enough for a pause. The odds on no change next month sit at 86.5%.
- Other issues commanding investors' attention include China's fall into deflation, mixed corporate earnings and evidence of Americans borrowing record amounts on credit cards.
- West Texas Intermediate books its highest close of the year following a decline in US fuel inventories. Brent crude closes at its highest since Australia Day.
- The US energy sector jumps 1.22%. Real estate, utilities and consumer staples gain less than 0.2%. Growth sectors, financials and materials fill the bottom slots.
- Iron ore edges back above US$100 per metric ton in China and Singapore trade. Gold settles at a two-week low ahead of tonight's US inflation data. Base metals trade mixed.
Key events today:
- July US consumer inflation - tonight
S&P 500: down 32 points or 0.7%
Dow: down 191 points or 0.54%
Nasdaq: down 162 points or 1.17%
Dollar: down 0.11% to 65.26 US cents
Iron ore (Dalian): up 0.1% to US$100.32
Brent crude: up US$1.38 or 1.6% to US$87.55
Gold: down US$9.30 or 0.5% to US$1,950.60 (2-week low)
NYSE Arca Gold Bugs: up 0.03%
Copper (LME): up 0.68% to US$8,404.50
Nickel (LME): down 1.61% to US$20,500
Lithium carbonate (China spot): down 1.58% to US$34,782
Global X Lithium & Battery Tech ETF: down 0.94%
BHP: up 0.12% (US); up 0.88% (UK)
Rio Tinto: up 0.2% (US); up 0.99% (UK)
