Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Neutral after Wall Street ends mixed and commodity prices mostly retreat.
ASX futures: down one point or 0.01%
Overnight themes:
- Wall Street's main indices close mixed but little changed after the Federal Reserve hikes benchmark rates to the highest in 22 years and warns more increases are possible.
- The Fed raises benchmark overnight rates by 25 basis points to a range of 5.25 - 5.5%, the highest since 2001. The central bank has raised at 11 of its last 12 policy meetings.
- The Dow continues to lead, logging a 13th straight gain for the first time since 1987. The blue-chip average has not risen for 14 sessions in more than a century.
- The S&P 500 and Nasdaq finish modestly lower as traders digest a warning from Fed Chair Jerome Powell that the central bank remains determined to crush inflation.
- “We remain committed to bringing inflation back to our 2% goal. No one should doubt that” - Chair Powell at a press conference following the Fed rate hike. “I would say it is possible we could raise at the September meeting if the data warranted, and it's possible we would choose to hold steady at that meeting,” he added.
- Microsoft drops 3.72% after warning it will have to spend big to meet demand for AI services. Google owner Alphabet adds 5.78% after beating profit expectations.
- Industrials, financials and real estate rise. Tech is the biggest drag. Materials and energy also retreat as some of the heat comes out of this week's China-fuelled rally in crude and bulk metals.
Key events today:
- Q4 import prices - 11.30 am AEST
- European Central Bank rates decision - tonight
- US GDP, durable goods, jobless claims - tonight
S&P 500: down 1 point or 0.02%
Dow: up 82 points or 0.23% (13th straight gain)
Nasdaq: down 17 points or 0.12%
Dollar: down 0.44% to 67.57 US cents
Iron ore (Dalian): down 0.4% to US$120.76
Brent crude: down 72 US cents or 0.9% to US$82.92
Gold: up US$6.40 or 0.3% to US$1,970.10 (+ an additional $3.30 since Fed decision to $1,973.40)
NYSE Arca Gold Bugs: down 0.76%
Copper(LME): down 0.8% to US$8,604
Nickel (LME): down 3.96% to US$21,570
Global X Lithium & Battery Tech ETF: up 0.56%
BHP: down 1.67% (US); down 1.87% (UK)
Rio Tinto: down 2.66% (US); down 3.06% (UK)
