Morning traders. Thanks loungers, especially @Ravgnome.
Outlook for the day: Negative following declines in key commodities and as Wall Street surrenders most of its early gains.
ASX futures: down 20 points or 0.27%
Overnight themes:
- An early bounce on Wall Street fades after headline inflation ticks higher but by less than some economists feared. The main indices finish modestly higher, but well off session peaks after being up more than 1%.
- Consumer prices increase by 0.2% in July, lifting the year-on-year increase to 3.2%, versus 3% in June. The increase in the annual Consumer Price Index is the first in 13 months, but less than the 3.3% anticipated by economists. Core inflation eases to 4.7% year-on-year from 4.8% in June.
- "People looked at the headline number first and we had the big upswing, but as the day went on, the rally faded and that was probably the right reaction" - Gregg Abella, CEO of Investment Partners Asset Management.
- San Francisco Federal Reserve Bank President Mary Daly said it was premature to make a call on a rates pause and she needed to see more evidence of slowing inflation before declaring a halt. "I'm going to need to see some traction in getting there before I feel comfortable that we've done enough," she said.
- Citigroup warns that rising energy prices could cause inflation to reignite later this year.
- First-time claims for unemployment benefits jump by 21,000 to 248,000 last week.
- At a sector level, communication services and consumer discretionary are the only pockets of the market to gain more than 0.1%. Utilities, real estate and industrials are the biggest drags.
- Iron ore slips back under US$100 a metric ton in China. Oil backs off a seven-month high. Gold eases for a third session, but ends little changed.
Key events today:
- US wholesale inflation, consumer sentiment - tonight
S&P 500: up 1 point or 0.03%
Dow: up 53 points or 0.15%
Nasdaq: up 16 points or 0.12%
Dollar: down 0.22% to 65.21 US cents
Iron ore (Dalian): down 0.49% to US$99.10
Brent crude: down 22 US cents or 0.3% to US$87.33
Gold: down US$1.70 or 0.1 % to US$1,948.90
NYSE Arca Gold Bugs: unchanged
Copper (LME): down 0.58% to US$8,348.50
Nickel (LME): down 0.49% to US$20,400
Lithium carbonate (China spot): down 0.8% to US$34,509
Global X Lithium & Battery Tech ETF: down 0.16%
BHP: down 0.3% (US); up 0.49% (UK)
Rio Tinto: down 0.94% (US); down 0.51% (UK)
