Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook: Positive for the start of a week that includes an interest rate decision and a US market holiday (both tomorrow).
ASX futures: up 29 points or 0.4%
Friday themes:
· US stocks end a strong month and first half with further gains as a key measure shows inflationary pressures eased in May. Megacap growth stocks continue to outperform.
· The Nasdaq ends its best first half in 40 years with a six-month gain of 31.7%. The S&P 500 added 15.9% (best first half since 2019). The Dow put on 3.8%.
· The Personal Consumption Expenditures index logs its smallest annual increase in two years. The year-on-year increase in the PCE was 3.8% in May, down from 4.3% in April. However, the core PCE eases just 10 basis points to 4.6% from 4.7%.
· “This is excellent news on the inflation fight. If you don’t believe disinflation is happening, you aren’t paying attention. The Fed was right to pause and needs to hold firm at these levels to prevent overcorrecting and causing an unnecessary recession to fight a beast that is now under control” - Jamie Cox, managing partner at Harris Financial Group.
· Tech heavyweights continue to set the pace. Apple regains the US$3 trillion market cap it lost last year. Nvidia, Meta, Microsoft, Amazon and Netflix all rise.
· All 11 US sectors advance, led by tech, consumer discretionary and utility stocks.
Key events this week:
· Australia job ads, building approvals - 11.30 am AEST today
· China manufacturing PMI - 11.45 am today
· US manufacturing - tonight
· Australia interest rate decision - tomorrow
· July 4 US market holiday - tomorrow
· Australia retail sales - Wednesday
· OPEC+ meeting - Wednesday
· Minutes from last month's Federal Reserve meeting - Wednesday
· Australia trade balance - Thursday
· US monthly jobs report - Friday
S&P 500: up 54 points or 1.23%
Dow: up 285 points or 0.84%
Nasdaq: up 197 points or 1.45%
Dollar: up 0.81% to 66.63 US cents
Iron ore (Dalian): down 0.7% to US$113.35 (+17% for June)
Brentcrude: up 56 US cents or 0.8% to US$74.90 (+3.1% for June)
Gold: up US$11.50 or 0.6% to US$1,929.40 (-2.7% for June)
NYSE Arca Gold Bugs: up 1.75%
Copper (LME): up 1.64% to US$8,312
Nickel (LME): down 1.55% to US$20,325
Global X Lithium & Battery Tech ETF: up 2.23%
BHP: down 0.17% (US); down 0.47% (UK)
Rio Tinto: up 0.06% (US); down 0.25% (UK)
