Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Likely to open little changed following three days of strong gains and a fourth straight advance overnight in the US. The ASX 200 had its best day in six weeks yesterday.
ASX futures: up four points or 0.06%
Overnight themes:
- US stocks rise for a fourth session as investors welcome soft economic data as a reason to leave interest rates on hold.
- Both GDP and private-payrolls data fall short of expectations, but not by enough to raise fears of a hard landing for the economy.
- Growth in the US economy during the second quarter is revised downwards to 2.1% from an initial estimate of 2.4%.
- Monthly private payrolls show a smaller-than-expected increase of 177,000 this month, versus Wall Street expectations for a gain of around 200,000.
- The odds on a rates pause next month rise to 89% from 86%, according to CME Group's FedWatch tool. The likelihood of a November pause rises to 54% from 52%.
- "The downgrade to second-quarter GDP growth will be welcomed by Fed officials and reinforces our expectations for a policy pause in September... Data point to steady economic momentum into the second half of the year and confirm that a recession isn't on the near-term horizon" - Lydia Boussour, senior economist at EY-Parthenon.
- Tech leads the rally as treasury yields fall to three-week lows. Energy, industrials and communication services are next strongest. Health and utilities finish lower.
- A third straight weekly decline in US crude inventories helps oil settle at its highest in more than two weeks. Traders keep an eye on a hurricane menacing operations along the Gulf Coast.
Key events today:
- Private capital expenditure, private sector credit - 11.30 am AEST
- China manufacturing PMI - 11.30 am
- US inflation report (personal consumption expenditures) - tonight
S&P 500: up 17 points or 0.38%
Dow: up 38 points or 0.11%
Nasdaq: up 76 points or 0.54%
Dollar: up 0.06% to 64.8 US cents
Iron ore (Dalian): up 1.97% to US$113.68
Brent crude: up 37 US cents or 0.4% to US$85.86
Gold: up US$7.90 or 0.4% to US$1,973
NYSE Arca Gold Bugs: up 0.06%
Copper (LME): up 0.29% to US$8,473.10
Nickel (LME): down 0.24% to US$20,635
Lithium carbonate (China spot): down 1.86% to US$29,311
Global X Lithium & Battery Tech ETF: down 0.64%
BHP: up 0.8% (US); up 0.73% (UK)
Rio Tinto: up 0.67% (US); up 0.58% (UK)
