Morning traders. Thanks @ttward and lounge lizards.
Overnight round-up and day ahead:
The ASX 200 looks set to top its all-time high at today's open as gains in commodities outweigh a mixed close on Wall Street.
The SPI 200 index futures contract rallied 33 points or 0.5 per cent to 6792, fuelled by falling bond yields and rises in BHP, Rio Tinto, crude and copper ahead of the resumption today of US-China trade talks. Iron ore traded mixed.
The ASX 200 advanced 32 points or 0.5 per cent yesterday to 6826, just 25 points short of the index's record peak at 6851.5 back in November 2007. The broader All Ords hit record territory last week and yesterday rose 32 points or 0.5 per cent. Bond yields fell to record lows, increasing the appeal of shares as an alternative investment.
US stocks struggled for transaction, with traders unwilling to add to bets before Wednesday's Federal Reserve rate announcement and as preparations continued for another round of trade negotiations. The S&P 500 eased five points or 0.16 per cent. Pressure on Amazon and Facebook helped drag the Nasdaq down 37 points or 0.44 per cent. Gains in Intel, Merck and Home Depot helped lift the Dow 29 points or 0.11 per cent.
Chinese and US trade negotiators are set to meet today in Shanghai for the first time since talks broke down in early May. However, officials close to the talks do not anticipate a major breakthrough this week, according to news reports. Negotiations have stalled over a range of issues, including protection for US intellectual property and government support for Chinese businesses.
Australia's largest resource companies moved higher in overseas action despite a sideways session for iron ore. BHP's US-listed stock put on 0.55 per cent and its UK stock 1.98 per cent. Rio Tinto gained 0.49 per cent in the US and 1.65 per cent in the UK. The spot price of ore at China's Tianjin port eased 30 cents or 0.3 per cent to $US118.45 a tonne. The most active futures contract edged up 4 yuan on the Dalian Commodity Exchange to 885 yuan per tonne.
Copper was boosted by a mix of trade optimism and anticipation that a Fed rate cut on Wednesday will depress the US dollar, making dollar-denominated commodities cheaper for holders of other currencies. Copper improved 0.9 per cent in official rings at the London Metal Exchange. Aluminium added 0.5 per cent, nickel 1.8 percent and zinc 1.3 per cent. Lead fell 0.9 per cent and tin 0.3 per cent.
Oil also caught an updraft from the trade-talk/rate-cut combination. Brent crude settled 15 cents or 0.2 per cent ahead at $US63.62 a barrel.
Gold edged north before settlement and extended its advance after. August gold settled $1.10 or 0.1 per cent higher at $US1,420.40 an ounce and had lately extended its rise to $7.40 or 0.5 per cent at $US1,426.70 an ounce.
The dollar eased a tenth of a cent to 69.02 US cents.
A busy week gathers momentum today, with domestic building approvals due at 11.30am Eastern Standard Time and the Bank of Japan due to make a policy announcement. Trade negotiations resume in Shanghai. The Fed commences a two-day policy meeting in the US. Consumer confidence is the likely highlight of a slew of US economic data due for release tonight. Apple is due to release earnings, along with Procter & Gamble, BP, Merck and Pfizer.
Breakfast
Today is National Cheesecake Day. Too early for me - I'll head for the buffet.
