Morning traders. Thanks loungers, especially @Ravgnome.
Outlook for the day: Negative after mining stocks sat out a Wall Street rally as US manufacturing contracted for a third month.
ASX futures: down 24 points or 0.31%
Overnight themes:
US stocks rallied in thin pre-Independence Day holiday trade as gains in megacap tech stocks helped offset weakness in miners and industrials following soft factory data.
The Nasdaq set the pace, rallying 0.83% as Microsoft, Apple, Tesla and Nvidia advanced. The S&P 500 put on 0.27% despite fewer than half its sectors booking gains. The Dow trailled with a rise of 0.13%.
Trading was light, with many traders taking a break this week in the run-up to Thursday's Independence Day public holiday.
The S&P materials and industrial sectors were the session's worst performers as US manufacturing continued to contract. The Institute for Supply Management's manufacturing PMI shrank to 48.5 last month from 48.7 in May. The materials sector lost 1.55%. The industrial sector shed 1.1%.
Tech stocks and other rate-sensitive sectors were boosted by news that input costs for manufacturers fell to a six-month low last month, easing inflationary pressures. The tech sector jumped 1.3%. The financial, consumer discretionary and communication services sectors also rose.
Small caps missed the upswing, continuing their under-performance this year. The Russell 2000 declined 0.86%. The small-cap index has risen just 0.1% this year, versus a gain of more than 14% for the S&P 500.
Oil hit a two-month high, supported by seasonal buying in the US and a decline in active US drilling rigs. Brent crude settled at US$86.60 a barrel, the strongest close since April 30. Prices have been on the rise, gaining 6% last month as traders bet in increased demand during the US holiday driving season. Also reportedly supporting prices: the number of rigs drilling for oil in the US has fallen for five weeks.
A three-year high in Chinese factory activity and a fleeting dip in the US dollar boosted metal prices. Iron ore gained 1.2% in China. Copper firmed 0.39% amid reports of fund-buying as the drop in the US currency lowers prices for holders of other currencies. Nickel lifted 1.51%
Key events today:
Minutes from last month's RBA policy meeting - 11.30 am AEST
Panel discussion involving Fed Chair Powell and ECB President Lagarde - tonight
US job openings - tonight
S&P 500: up 15 points or 0.27%
Dow: up 51 points or 0.13%
Nasdaq: up 147 points or 0.83%
Dollar: down 0.23% to 66.59 US cents
Iron ore (Dalian): up 1.2% to US$114.06
Brent crude: up US$1.60 or 1.88% to US$86.60
Natural gas (US futures): down 4.69% to US$2.48
Gold: down 70 US cents or 0.03% to US$2,338.90
Silver: up 32 US cents or 1.08% to US$29.45
NYSE Arca Gold Bugs: down 0.81%
Bitcoin: up 2.15% to US$63,157
Copper (LME): up 0.39% to US$9,636
Nickel (LME): up 1.51% to US$17,450
Uranium (spot price): steady at US$86.50
Lithium carbonate (China spot): down 0.88% to US$12,453
