Day trading pre-market open April 11

Morning traders. Thanks loungers, especially @Ravgnome.


Outlook for the day: Ugly following heavy losses on Wall Street as hotter-than-expected inflation figures dash hopes for a June interest rate cut.

ASX futures: down 65 points or 0.82%


Overnight themes:

• US stocks plunge as stubborn inflation pushes back the likely start of interest rate cuts. The dollar and treasury yields soar as the odds on a June cut diminish.
• The Dow tumbles more than 400 points or 1.09% to a near two-month low. The S&P 500 gives up 0.95%. The Nasdaq Composite loses 0.84%.
• The sell-off follows news that consumer prices increased more than expected last month, pointing to higher-rates-for-longer as the war on inflation continues. The minutes from the Federal Reserve's latest policy meeting, released later in the session, confirm that policy-makers are worried that inflation has stalled well above target.
• US consumer prices increase in March by 0.4% for a second straight month, lifting annual headline inflation to 3.5% from 3.2% in February. Economists had predicted growth of 0.3% and 3.4%, respectively. Core CPI was also stronger than expected at monthly growth of 0.4% and annual growth of 3.8%, versus expectations for readings of 0.3% and 3.7%.
• The minutes from last month's policy meeting show some policy-makers believe benchmark interest rates may not be restrictive enough to contain inflationary pressures. The minutes note "some" officials suggested current rates are "less restrictive than desired, which could add momentum to aggregate demand and put upward pressure on inflation."
• Former Treasury Secretary Larry Summers says there is a serious possibility that the bank's next move could be a rate hike, rather than a cut. "You have to take seriously the possibility that the next rate move will be upwards rather than downwards," Summers tells Bloomberg Television.
• The odds on a June rate cut plunge to 17% from above 60% last month. Futures pricing indicates traders now expect the first cut no earlier than September.
• The yield on 10-year US treasuries surges almost 18 basis points, back above 4.5% in the biggest up-swing in a year. The US dollar index rallies 1%.
• Small caps bear the brunt of the selling. The Russell 2000 index of small caps falls 2.52%, leaving it underwater for the year.
• Rate-sensitive sectors are heavily punished. The real estate sector dives 4.1%. Utilities sheds 1.73%. Also hit hard are materials -1.55% and financials -1.5%. Energy is the only sector to weather the storm, gaining 0.38% as oil rebound back above US$90 a barrel.
• The Australian dollar is smacked down more than 1.7% in minutes as the greenback soars on the inflation news. The Aussie was lately down 1.71% at 65.15 US cents, reversing more than a week of steady gains.
• Iron ore rises for a third session in China, but turns lower in Singapore as this week's fierce rally loses momentum. China-traded ore gains 1.43% in daytime trade. In Singapore, benchmark May ore futures ease 0.74%.

Key events today:

• China inflation - 11.30 am AEST
• US wholesale inflation (PPI) - tonight
• European Central Bank rates decision - tonight

S&P 500: down 49 points or 0.95%

Dow: down 422 points or 1.09%

Nasdaq: down 136 points or 0.84%

Dollar: down 1.71% to 65.15 US cents

Iron ore (Dalian): up 1.43% to US$112.48

Brent crude: up US$1.06 or 1.2% to US$90.48

Gold: down US$14 or 0.6% to US$2,348.40

NYSE Arca Gold Bugs: down 1.49%

Bitcoin: down 0.38% to US$69,758

Copper (LME): up 0.06% to US$9,417.50

Nickel (LME): up 2.08% to US$18,219

Uranium (spot price): steady at US$89

Lithium carbonate (China spot): up 1.4% to US$15,651

Global X Lithium & Battery Tech ETF: down 2.87%

BHP: down 1.34% (US); up 0.17% (UK)

Rio Tinto: down 1.12% (US); down 0.3% (UK)