Morning traders. Thanks loungers, especially @Ravgnome.
Outlook for the day: Positive
ASX futures: up 24 points or 0.32%
Friday/weekend themes:
US stocks bounce as upbeat trading updates from Microsoft and Alphabet help offset a modest increase in inflation.
The Nasdaq soars 2.03% during its strongest session since February. Google owner Alphabet jumps 10.22% after beating Q1 earnings expectations, announcing its first ever dividend and launching a buyback. A profit beat lifts Microsoft 1.82%. Other market megacaps also advance, including Amazon, Meta and Nvidia.
The S&P 500 puts on 1.02%, with gains in growth stocks offsetting declines in utilities, energy producers and banks. The Dow gains 0.4%.
“We are finishing a volatile week on a strong note. It’s nice to see some green on the screen. Clearly one of the drivers has been the stellar reports coming out of megacap technology” - Mona Mahajan, senior investment strategist at Edward Jones (per CNBC).
Investors found the positives in mixed inflation data. Inflation increased by 2.7% through the 12 months to March, in line with expectations but up from a 2.5% rate in February. The personal consumption expenditures price index increased by 0.3% for the month, also in line but ahead of the 0.2% growth needed to bring inflation back within the Federal Reserve's target band.
Alphabet's result helps lift the communication services sector 4.7%. Also strong: tech +1.85%, consumer discretionary +1.32% and materials +0.63%. Selling pressure is strongest in utilities -1.12%, energy -1.02% and financials -0.2%.
Friday's rebound helps the S&P 500 break a three-week losing streak with a weekly rise of 2.7%. The Nasdaq ends a run of four weekly losses by bouncing 4.2%. The Dow gains 0.7% for the week.
BHP looks set to drag on the ASX for a second session following Friday night losses on overseas markets after Anglo American knocks back the Big Australian's US$59.6 billion takeover offer. The UK-listed copper miner says BHP's offer "fails to value" Anglo American's prospects. BHP shares 2.64% in the UK and 1.36% in the US amid speculation it will have to raise its bid. An anonymous source quoted by Reuters over the weekend says BHP is considering improving its offer.
Soft Chinese economic data released over the weekend may also prove a handbrake on ASX gains today. Industrial profits declined 3.5% year-on-year in March, raising questions about the strength of Chinese economic growth.
Copper breaks above US$10,000 a metric ton in London for the first time in two years. Benchmark copper trades as high as US$10,028 on the London Metal Exchange before paring its advance to 1.02% at US$9,965.50. Copper prices hit an all-time high in Shanghai.
Iron ore seals a third straight weekly advance with a consolidation session on Friday. Prices improve less than 0.1% in China on Friday for a weekly gain of 2%.
Key events this week:
Retail sales - Tuesday
Private sector credit - Tuesday
China manufacturing - Tuesday
US consumer confidence, employment cost index - Tuesday
China market holiday - Wednesday to Sunday
US interest rate decision - Wednesday
US private payrolls, job openings, manufacturing PMI - Wednesday
Building approvals - Thursday
Trade balance - Thursday
US jobs report - Friday
S&P 500: up 52 points or 1.02%
Dow: up 154 points or 0.4%
Nasdaq: 316 points or 2.03%
Dollar: down 0.04% to 65.29 US cents
Iron ore (Dalian): up 0.06% to US$122.07
Brent crude: up 49 US cents or 0.6% to US$89.50
Gold: up US$4.70 or 0.2% to US$2,347.20
NYSE Arca Gold Bugs: up 0.86%
Bitcoin: down 0.13% to US$63,656
Copper (LME): up 1.02% to US$9,965.50
Nickel (LME): down 0.3% to US$19,100
Uranium (spot price): up 1.57% to US$88
Lithium carbonate (China spot): down 0.38% to US$15,341
