Morning traders. Thank you to the star crew who kept the threads running this week: @Helsyd, @just browsing and @Endless. (Thanks also to regulars @shovel40, @Ravgnome and @Patterns.)
Outlook for the day: Neutral.
ASX futures: down three points or 0.04%
Overnight themes:
- US stocks fall as investors digest mixed inflation data and indications the Federal Reserve fears the banking crisis may trigger a mild recession.
- Headline inflation drops to 5% year-on-year from 6% in February. However, underlying (core) inflation rose 5.6% year-on-year, up from 5.5% in February. The increase in core inflation (first in six months) firmed up the likelihood of another rate hike next month. Stocks seesawed before finishing near session lows.
- The minutes from last month's Fed policy meeting show the central bank fears turmoil in the financial sector will infect confidence in the real economy. Staff project "a mild recession starting later this year".
- Rate-sensitive growth sectors lead the selling. ASX futures aided by modest gains in the industrial, energy and materials sectors.
Key events today:
- Australian March employment report at 11.30 am AEDT. Expected: jobless rate to rise to 3.6% from 3.5%; jobs growth of 20,800.
- US wholesale inflation, weekly unemployment claims tonight.
S&P 500: down 17 points or 0.41%
Dow: down 38 points or 0.11%
Nasdaq: down 103 points or 0.85%
Dollar: up 0.6% to 66.93 US cents
Iron ore (Dalian): up 0.3% to US$114.42
Brent crude: up US$1.72 or 2 % to US$87.33 (highest close since Jan)
Gold: up US$5.90 or 0.3% to US$2,024.90 (1-week high)
NYSE Arca Gold Bugs: up 0.74%
Copper (LME): up 1.19% to US$8,960
Nickel (LME): up 0.74% to US$23,670
Global X Lithium & Battery Tech ETF: down 1.92%
BHP: down 0.51% (US); down 0.68% (UK)
Rio Tinto: down 0.26% (US); down 0.63 % (UK)
