Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Positive as the first rally in US stocks in five sessions helps offset declines in key commodities.
ASX futures: up 29 points or 0.4%
Overnight themes:
- US stocks rebound from their worst week since March. Market analysts point to dip-buying following four straight losses through to last Friday.
- "I think you've got enough people that might be looking to put some money to work, because they've really missed a lot of this rally, so that will limit any downside" - Jack Janasiewicz, lead portfolio strategist, Natixis Investment Managers.
- Investors weigh a record profit from Warren Buffet's Berkshire Hathaway alongside disappointing updates from Tyson Foods and vaccine-makers Moderna and BioNTech. Almost 80% of S&P 500 companies have beaten expectations this reporting season, according to Refinitiv data.
- “It’s been a better-than-expected earnings season, and so I think that’s why the market’s had such staying power” - Chris Zaccarelli, chief investment officer, Independent Advisor Alliance.
- Ten of eleven sectors advance, led by communication services +1.88%, financials +1.36% and industrials +1.26%. Utilities closes fractionally lower, down 0.02%.
- The week ahead brings more corporate earnings, as well as reports on consumer and wholesale inflation.
- Iron ore and most industrial metals retreat as investors continue to fret about a lack of major initiatives to prop up Chinese demand. The Global X Lithium and Battery Tech ETF touches a six-week low as lithium prices deflate. A rally in US bond yields pressures precious metals.
Key events today:
- Consumer sentiment - 10.30 am AEST
- Business confidence - 11.30 am
S&P 500: up 40 points or 0.9%
Dow: up 408 points or 1.16%
Nasdaq: up 85 points or 0.61%
Dollar: up 0.03% to 65.74 US cents
Iron ore (Dalian): down 1.6% to US$100.03
Brent crude: down 90 US cents or 1% to US$85.34
Gold: down US$6.10 or 0.3% to US$1,970
NYSE Arca Gold Bugs: down 0.72%
Copper(LME): down 0.9% to US$8,496
Nickel(LME): down 0.73% to US$21,125
Lithium carbonate (China spot): down 2.29% to US$35,934
Global X Lithium & Battery Tech ETF: down 0.96%
BHP: up 0.08% (US); down 0.76% (UK)
Rio Tinto: up 0.02% (US); down 0.87% (UK)
