Hope everyone had a great Christmas. Time to pay some bills? Let's get at it. Here's the playing field for today:
Outlook for the day: Positive following two days of US stock gains since the ASX last traded.
ASX futures: down 3 points or 0.04% (NB: untraded since Dec 22. In other words, this figure does not reflect positive US action since the ASX closed on Friday.)
Overnight themes:
US stocks kick off the last week of the year with solid gains as an eight-week rally continues overnight. The S&P 500 closes this morning within 1% of a record.
Trading volumes are light at the start of a holiday-affected week. All three major indices are shooting for a ninth straight positive week.
Stocks moved broadly higher on Friday after inflation data supported the narrative that the next move in interest rates will be lower. On Friday, the S&P 500 firmed 0.17%. The Nasdaq added 0.19%. The Dow dipped 0.05%. Overnight, the three indices gain 0.42 - 0.54%.
"We had a good inflation number on Friday. If inflation continues to move down in January and February, there's a good chance that the Fed may cut earlier than anticipated" - Peter Cardillo, chief market economist at Spartan Capital Securities (per Reuters).
The odds on a rate cut by March rise to 72.7%, according to CME's FedWatch tool.
The energy sector spearheads US gains overnight as shipping disruptions in the Red Sea help lift Brent crude back US$80 a barrel. The international oil benchmark pops 2.53% to US$81.07. The US energy sector rises 0.87%.
Other notable sector gains overnight include: real estate +0.78%, industrials +0.73% and utilities +0.65%. The materials sector firms 0.44%. Financials tack on 0.41%.
Intel jumps 5.21% after the Israeli government offers the chipmaker a US$3.2 billion grant to build a factory in Israel.
Chinese stimulus measures help lift iron ore. Ore prices on the Dalian Commodity Exchange rally 1.3% to US$137.22 per metric ton after China announces it will support a second bundle of investment projects, and several state banks cut lending costs.
Key events this week:
US house sales, jobless claims - Thursday
China factory data - Sunday
S&P 500: up 20 points or 0.42%
Dow: up 159 points or 0.43%
Nasdaq: up 82 points or 0.54%
Dollar: up 0.31% to 68.25 US cents
Iron ore (Dalian): up 1.3% to US$137.22
Brent crude: up US$2 or 2.53% to US$81.07
Gold: up US$10.50 or 0.5% to US$2,079.60
NYSE Arca Gold Bugs: up 0.08%
Bitcoin: down 3.03% to US$42,179
Copper: LME closed. Last traded price: US$8,570.75
Nickel: LME closed. Last traded price: US$16,550
Uranium: up 1.51% to US$93
Lithium carbonate (China spot): last traded price: US$14,000 (Dec 21)
