Day trading pre-market open April 3

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    Morning traders. Thanks loungers, especially @Ravgnome.


    Outlook for the day: Negative as solid falls on Wall Street offset commodity price gains.

    ASX futures: down 30 points or 0.38%


    Overnight themes
    :
    • US stocks retreat and treasury yields rise as traders lower expectations for a June rate cut. The Dow and S&P 500 drop for a second night. The Nasdaq also falls.
    • Treasury yields rise as the market succumbs to a recent run of strong economic data, stubbornly-high inflation readings and warnings from Federal Reserve officials that the bank is in no rush to cut rates. A report on Friday showed inflation remains well above the Fed's target rate at an annual rate of 2.8%. Manufacturing data on Monday implied the economy may be heating up again, risking an upsurge in inflation. Energy prices are also on the advance (more below).
    • Overnight data show factory orders rebounded more than expected in February, while job openings were little changed in a sign demand for labour remains well supported. The yield on 10-year treasuries logs its highest return since late November.
    • The odds on a June rate cut have drifted out to 57% from 64% last week, according to CME Group's FedWatch tool.
    • "The narrative of 'higher [rates] for longer' is coming back into play despite the fact that the Fed does see a rate cut sometime this year. So this has got the market worried" - Quincy Krosby, chief global strategist at LPL Financial (per Reuters).
    • Wall Street's "fear gauge", the VIX or volatility index, records its strongest reading in more than two weeks.
    • A 4.9% slump in Tesla drags on the Nasdaq and S&P 500 after the electric car-maker reports its first decline in quarterly deliveries in almost four years.
    • Eight of eleven sectors decline. The night's worst performers are healthcare -1.62%, consumer discretionary -1.28% and real estate -1.12%. Three sectors buck the downtrend: energy +1.37%, utilities +0.17% and communication services +0.09%.
    • Escalating tensions in the Middle East boost oil and gold. Brent crude touches its highest since late October after an Israeli strike on Iran's embassy in Syria sharpens fears of a wider conflict. Gold logs a third-straight record as traders buy traditional havens in times of geopolitical strife.
    • Iron ore rises for the first time in six sessions as buyers stock up ahead of public holidays in China later this week. The most-traded ore contract on the Dalian Commodity Exchange bounces 3.1%. Chinese markets close on Thursday and Friday.
    • Copper regains US$9,000 a ton following the first expansion in Chinese manufacturing in six months. Other industrial metals also rally. Nickel climbs back above US$17,000 a ton. Weekend data showed the official manufacturing PMI improved to 50.8 last month from 49.1 in February.

    Key events today:
    • China services PMI - 12.45 pm AEDT
    • US private payrolls, services PMI - tonight
    • Speech by US Federal Reserve Chair Jerome Powell - tonight

    S&P 500: down 38 points or 0.72%

    Dow: down 397 points or 1%

    Nasdaq
    : down 156 points or 0.95%

    Dollar: up 0.43% to 65.16 US cents

    Iron ore (Dalian): up 3.1% to US$106.15

    Brent crude
    : up US$1.50 or 1.7% to US$88.92

    Gold
    : up US$24.70 or 1.1% to US$2,281.80

    NYSE Arca Gold Bugs: up 1.16%

    Bitcoin: down 5.23% to US$66,073

    Copper (LME): up 1.62% to US$9,011

    Nickel (LME): up 2.28% to US$17,025

    Uranium (spot price): up 1.14% to US$89.50

    Lithium carbonate (China spot): up 0.84% to US$15,284

    Global X Lithium & Battery Tech ETF: down 0.48%

    BHP: up 1.41% (US); up 2.33% (UK)

    Rio Tinto: up 1.42% (US); up 1.99% (UK)
 
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