Morning traders. Thanks loungers, especially @Ravgnome.
Outlook for the day: Negative. The Australian market looks set for its first losing week in four weeks following overnight declines in the US and on most commodity markets.
ASX futures: down 38 points or 0.52%
Overnight themes:
- US stocks fall as earnings disappoint and economic data points to a cooling economy.
- Tesla sinks almost 10% after reporting contracting margins and warning it will pursue volumes at the expense of pricing. AT&T and AmEx also weigh after missing estimates.
- First-time claims for unemployment benefits edge up by 5,000 to a higher-than-expected 245,000. The Conference Board's Leading Economic Index drops to its lowest since November 2020. Housing sales decline 2.4%.
- "After months and months of watching, for the first time we can say we see a recession coming and it will be a miracle if we don't have a downturn in the economy" - Christopher Rupkey, chief economist at FWDBONDS.
- Consumer staples is the only US sector to edge higher. Utilities and materials also little changed. Consumer discretionary (Tesla, real estate and energy lead the selling.
- Iron ore slumps to a two-month low in China after Rio Tinto reported better-than-expected shipping figures and China's state planner reiterated plans to limit price hikes. Oil and base metals also fall.
S&P 500: down 25 points or 0.6%
Dow: down 110 points or 0.33%
Nasdaq: down 98 points or 0.8%
Dollar: up 0.57% to 67.43 US cents
Iron ore (Dalian): down 2.62% to US$110.62 (2-month low)
Brent crude: down US$2.02 or 2.4% to US$81.10 (new April low)
Gold: up US$11.80 or 0.6% to US$2,019.10
NYSE Arca Gold Bugs: down 0.11%
Copper (LME): down 0.91% to US$8,884
Nickel (LME): down 1.8% to US$25,090
Global X Lithium & Battery Tech ETF: down 3.14% (1-week low)
BHP: down 3.24% (US); down 2.04% (UK)
Rio Tinto: down 2.76% (US); down 1.59% (UK)
