Morningtraders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Positive following gains on Wall Street on Friday as investors assess the outlook for interest rates.
ASX futures: up 20 points or 0.28%
Friday themes:
· US stocks rise in choppy action as investors welcome a Federal Reserve pledge to "proceed carefully" with any future rate hikes.
· The S&P 500 and Nasdaq snap three-week losing streaks. The Dow logs a second straight weekly loss.
· Fed Chair Jerome Powell tells the annual Jackson Hole symposium the central bank is "prepared to raise rates further if appropriate" and keep them "at a restrictive level until we are confidence that inflation is moving sustainably down toward our objective." However, the bank is "in a position to proceed carefully as we assess the incoming data and the evolving outlook and risks.
· Treasury yields back off recent multi-year highs amid optimism official rates are near a top.
· "Last year [Powell] took out the bazooka and was way more hawkish than anyone expected, which saw heavy selling into October. This time he hit it more down the middle, with no major changes in future hikes a welcome sign” - Ryan Detrick, chief market strategist at Carson Group.
· All 11 US sectors rise, led by consumer discretionary (+1.1%) and energy (+1.07%).
· Iron ore wraps up its best week in almost three months with its 11th rise in 12 sessions. Seasonal factors at play - September/October is peak construction season in China.
· Gold finishes down on the day but breaks a run of four weekly losses.
Key events this week:
· Last big week of earnings season. Potential highlights: Fortescue Metals, Appen (today); Mineral Resources (Tuesday); Brambles (Wednesday); and Bank of Queensland, Sandfire, IGO (Thursday)
· Retail sales - 11.30 am AEST
· Speech by incoming RBA Governor Michele Bullock - Tuesday
· US housing, consumer confidence, job openings - Tuesday
· July consumer inflation, building approvals, construction work - Wednesday
· US GDP, private payrolls - Wednesday
· China manufacturing - Thursday
· US personal consumption expenditures (inflation data) - Thursday
· US August jobs report - Friday
S&P 500: up 29 points or 0.67%
Dow: up 247 points or 0.73%
Nasdaq: up 127 points or 0.94%
Dollar: up 0.07% to 64.06 US cents
Iron ore (Dalian): up 0.5% to US$113.49
Brent crude: up US$1.12or 1.3% to US$84.48
Gold: down US$7.20 or 0.4% to US$1,939.90
NYSE Arca Gold Bugs: down 1.19%
Copper (LME): steady at US$8,359
Nickel (LME): down 0.19% to US$20,770
Lithium carbonate (China spot): down 0.89% to US$31,023
Global X Lithium & Battery Tech ETF: up0.14%
BHP: down 0.29% (US); down 0.5% (UK)
Rio Tinto: down 0.13% (US); down 0.14% (UK)
