Outlook for the day: Highly positive following a fierce rebound rally on Wall Street.
ASX futures: up 81 points or 1.06%
Overnight themes:
US stocks surged after a drop in claims for unemployment benefits soothed fears that the economy was tipping towards recession.
The S&P 500 had its best night since November 2022, soaring 2.3% as traders took advantage of prices near three-month lows following a steep three-day sell-off across the weekend.
The Nasdaq gained 2.87% with Nvidia and Meta logging substantial gains. The Dow put on 683 points or 1.76%.
A market on edge following a string of disappointing economic data breathed a sigh of relief when first-time filings for unemployment benefits came in weaker than expected. First-time claims for benefits declined 17,000 last week to 233,000. Economists had predicted a reading around 240,000.
"This was the data point for the week, so it took on added importance. Our reading on this is the labor market continues to be OK... The recession fears at this point are probably a little overblown" - Paul Nolte, senior wealth advisor and market strategist for Murphy & Sylvest (per Reuters).
Also helping sentiment was a softening in the yen. A surge in the Japanese currency following a rate hike was one of the triggers for recent market volatility as traders abandoned the yen carry trade, selling high-yielding assets previously bought with the yen when the cost of borrowing was lower.
Wall Street's "fear gauge", the VIX, eased nearly 15%.
All 11 S&P sectors advanced, led by tech +3.31%, communication services +2.41% and industrials +2.3%. The two sectors with the biggest weighting on the ASX - financials and materials - gained 1.62% and 1.58%, respectively.
Last night's rally reversed much of Monday's heavy losses. The S&P 500 finished the session around 0.5% lower for the week. The Dow and Nasdaq were down around 0.7%.
Oil rose for a third session as the mood on global markets improved. Brent crude climbed 1.1% to US$79.16 a barrel.
The NYSE Arca Gold Bugs index of US precious metal miners rallied 2.14% as gold added to Wednesday's slender gain. Gold futures firmed 1.27% on Nymex, breaking a run of five sessions where the price settled lower than its opening price.
BHP and Rio Tinto gained in US trade despite a third straight decline in the price of iron ore. Benchmark ore futures skidded 3.63% to US$101.66 a metric ton in China trade amid unconfirmed reports that the steel-making region of Tangshan may impose production curbs. Singapore ore dropped back below the US$100 ton level.
Key events today:
China inflation data (CPI, PPI) - 11.30 am AEST
S&P 500: up 120 points or 2.3%
Dow: up 683 points or 1.76%
Nasdaq: up 464 points or 2.87%
Dollar: up 1.11% to 65.91 US cents
Iron ore (Dalian): down 3.63% to US$101.66
Brent crude: up 83 US cents or 1.1% to US$79.16
Gold: up US$30.90 or 1.27% to US$2,463.30
Silver: up 67 US cents or 2.49% to US$27.61
NYSE Arca Gold Bugs: up 2.14%
Bitcoin: up 8.07% to US$59,663
Copper (LME): up 0.45% to US$8,809
Nickel (LME): down 0.15% to US$16,175
Lithium carbonate (China futures): down 0.9% to US$11,155
Global X Lithium & Battery Tech ETF: up 1.71%
Uranium (spot): steady at US$82
BHP: up 0.74% (US); down 0.43% (UK)
