Morning traders. Thanks loungers, especially @Ravgnome. Wishing better health to StuANZ2019.
Outlook for the day: The ASX 200 looks headed for a fourth straight loss for the first time since April following a losing night on Wall Street.
ASX futures: down 55 points or 0.66%
Overnight themes:
US stocks fell as disappointing wholesale inflation data pushed out the likelihood of additional interest rate cuts after next week's Federal Reserve policy meeting.
The S&P 500 declined 0.54% as skinny gains in consumer staples were outweighed by declines across the rest of the market.
The Nasdaq reversed 0.66% from Wednesday's record close. Drags included Adobe, Tesla and Nvidia.
The Dow fell 0.53% to a sixth straight loss, its longest losing streak since April. While the Magnificent Seven have been grabbing the headlines with fresh records this week, the value stocks that make up much of the Dow have been selling. The Vanguard Value ETF slumped to a ninth straight loss, its worst run since 2018, according to MarketWatch.
Market nerves about the outlook for interest rate cuts next year were sharpened by news that wholesale prices increased twice as much as expected last month. The Producer Price Index rose 0.4%. Annual price growth of 3% was the highest since February 2023. Also unsettling investors was news that initial claims for unemployment benefits jumped to 242,000 last week, well ahead of the 220,000 forecast by economists.
While a rate cut next week looks like a lock (odds of 98%, according to CME's FedWatch tool), what happens after is less certain. "Investors are just trying to suss out what is the Fed going to do next week? Is inflation really going to be a problem and the Fed has to really slow its role on rate cuts, or can they get there?" Rob Haworth, senior investment strategist at U.S. Bank Wealth Management told Reuters.
The only S&P sector to finish ahead was consumer staples +0.18%. The heaviest losses were consumer discretionary -0.84%, health -0.83% and communication services -0.77%. The materials sector shed 0.69%. Financials lost 0.4%.
Gold fell as traders cashed in at a five-week high ahead of next week's Federal Reserve interest rate decision. Gold futures settled 1.7% lower at US$2,709.40 an ounce.
Copper fell following reports that China could all the yuan to weaken as a defence against increased US tariffs when Donald Trump re-enters the White House next month. Such a move would reduce the value of Chinese refined copper exports. Benchmark copper declined 1.22% on the London Metal Exchange to US$9,080 a metric ton.
BHP and Rio Tinto declined in overseas trade despite a rebound in iron ore. Benchmark ore rallied 0.86% in China to US$112.68 a metric ton, reversing much of Wednesday's loss. Prices in Singapore lifted more than 1.3%. Nonetheless, ASX mining heavyweights BHP and Rio lost between 1.1% and 2.39% in US and UK trade.
Key events today:
Speech by RBA Assistant Governor Sarah Hunter - 12.30 pm AEST
S&P 500: down 33 points or 0.54%
Dow: down 234 points or 0.53%
Nasdaq: down 132 points or 0.66%
Dollar: down 0.31% to 63.63 US cents
Iron ore (Dalian): up 0.86% to US$112.68
Brent crude: down 11 US cents or 0.15% to US$73.41
Gold (futures): down US$47.30 or 1.7% to US$2,709.40
Gold (spot): down US$40.09 or 1.47% to US$2,679.97
Silver (spot): down 97 US cents or 3.03% to US$30.95
NYSE Arca Gold Bugs: down 3.54%
Bitcoin: down 1.23% to US$100,059
Copper (LME): down 1.22% to US$9,080
Nickel (LME): up 1.86% to US$16,140
Lithium carbonate (China): steady at 76,550 yuan
Global X Lithium & Battery Tech ETF: up 0.29%
Uranium (spot): steady at US$76.50
Global X Uranium ETF(URA): down 2.41%
BHP: down 2.07% (US); down 1.1% (UK)
