Outlook for the day: Positive after US stocks rose for the ninth time in ten sessions, with resource stocks among the night's best performers.
ASX futures: up 28 points or 0.35%
Overnight themes:
US stocks got back to winning ways as the minutes from the latest Federal Reserve policy meeting and a sharp downward revision to payrolls figures appeared to lock in a September rate cut.
The S&P 500 climbed 0.42% to its ninth gain in ten sessions. The Nasdaq put on 0.57% and the Dow added 0.14%.
The minutes from last month's Fed meeting showed "the vast majority of policy-makers" are ready to cut benchmark rates next month, provided economic data comes in broadly as expected. "Several" policy-makers were willing to cut last month, arguing cooling inflation and rising joblessness "provided a plausible case for reducing the target range 25 basis points at this meeting".
Pressure on the Fed to lower rates increased after the Labor Department announced jobs growth in the 12 months through March was much weaker than previously reported. The 2.9 million increase in payrolls originally reported was revised downward by 818,000, the biggest negative revision since the GFC.
The odds on a September rate cut climbed to 100%, according to CME Group's FedWatch tool.
Fed Chair Jerome Powell is due to deliver a speech on Friday at the annual Jackson Hole economic symposium.
"Prior to today’s labor market data, the enthusiasm around Powell’s speech was probably fairly muted. That changed today. This revision, which was a big number, is putting Chairman Powell in a position where he's going to have to talk about the outlook for the labor market" - Oliver Pursche, senior vice president at Wealthspire Advisors (per Reuters).
Nine of eleven S&P sectors advanced, led by consumer discretionary +1.18% and materials +1.15%. The weak links were energy -0.01% and financials -0.14%.
Bulk metal miners BHP and Rio Tinto posted solid gains in overseas trade after iron ore regained the US$100 a metric ton level in China. Benchmark ore on the Dalian Commodity Exchange rallied 4.58% to US$104.02 after more than ten city governments abandoned price controls on new homes to aid struggling property markets. BHP gained 3.19% in US trade. Rio put on 2.24%.
Battery metal miners had a strong night in the US as investors shrugged off a 63% plunge in quarterly profits at the world's second-largest lithium miner. Chile's SQM rallied 3.17% after shifting record volumes. Rival Albemarle jumped 5.2%. The Global X Lithium & Battery Tech ETF in the US popped 3.56%.
Oil slumped to its lowest close since January after negative revisions to US payroll data cast a cloud over US demand prospects. Brent crude dropped US$1.15 or 1.5% to US$76.05 a barrel, the lowest settlement since January 2.
“We already have growing concerns that the Chinese economy is going to cool with the weather and pull significant demand out of the global petroleum market, and much of Europe is in question. So the U.S. data just added to the list” - Gary Cunningham, director of market research at Tradition Energy (per MarketWatch).
Key events today:
Corporate earnings: Super Retail Group, Eagers Automotive, Stockland, Sonic Healthcare, Northern Star, Insignia, Medibank, Growthpoint, Megaport, Telix, IPH, Whitehaven Coal, Qube, SkyCity, Monash IVF and G8 Education (source: CommSec)
Flash manufacturing, services PMIs - 9 am AEST
US flash manufacturing, services PMIs - tonight
US unemployment claims - tonight
S&P 500: up 24 points or 0.42%
Dow: up 56 points or 0.14%
Nasdaq: up 102 points or 0.57%
Dollar: down 0.02% to 67.45 US cents
Iron ore (Dalian): up 4.58% to US$104.02
Brent crude: down US$1.15 or 1.5% to US$76.05
Gold (futures): down US$3.10 or 0.1% to US$2,547.50
Gold (spot): down US$1.94 or 0.08% to US$2,511.06
Silver: up 15 US cents or 0.52% to US$29.59
NYSE Arca Gold Bugs: up 0.63%
Bitcoin: up 3.27 to US$60,997
Copper (LME): up 0.49% to US$9,249
Nickel (LME): up 0.42% to US$16,935
Lithium carbonate (China): steady at 73,500 yuan (NB: have changed price source because previous source became unreliable)
Global X Lithium & Battery Tech ETF: up 3.56%
Uranium (spot): down 0.55% to US$80.75
BHP: up 3.19% (US); up 2.33% (UK)
