Outlook for the day: Positive as records for the S&P 500 and Nasdaq help offset a chunky fall in iron ore and declines in several other commodities.
ASX futures: up 17 points or 0.22%
Overnight themes:
Two of Wall Street's three major benchmarks closed at new highs at the start of a week featuring inflation data, the launch of a new reporting season and testimony from Federal Reserve Chair Jerome Powell.
The Nasdaq put on 0.3% as tech stocks outperformed. A 1.88% rise in Nvidia helped lift an index of semiconductor manufacturers 1.93%.
The S&P 500 overcame a mid-session fade to advance 0.1%.
The Dow wallowed just below break-even, finishing 0.08% in the red as gains in Intel, Apple and Home Deport were outweighed by declines in Nike, Salesforce and Visa.
The week ahead brings Congressional appearances tonight and tomorrow night from Fed Chair Powell, inflation data on Thursday (CPI) and Friday (PPI) and the first major corporate earnings updates of a new season on Friday.
The odds on a September rate cut climbed above 75% last week after jobs data pointed to a slowing labour market. However, some analysts fear the Fed may wait too long to start cutting rates, pushing the economy into recession.
"What investors want to hear [from Powell] is a dovish tone and an acknowledgement that the two-sided risks are more evenly balanced today, in particular, with respect to the labor market" - Ross Mayfield, investment strategy analyst at Baird (per Reuters).
Tech and materials were the night's best performing sectors, gaining 0.72% and 0.28%, respectively. The only other gains were real estate +0.17%, industrials +0.13% and utilities +0.07%. Drags included energy -0.59% and financials -0.15%.
Iron ore slumped 3.3% in China, reversing much of last week's gain as inventories continued to increase at Chinese ports. Portside inventories have risen 25% since the start of the year, according to Mysteel data.
Oil slid to its lowest in more than a week as a hurricane weakened in the Gulf of Mexico, reducing the threat to infrastructure, and after Hamas dropped a key condition for a ceasefire with Israel. Hurricane Beryl was downgraded to a tropical storm after making landfall in Texas yesterday. Brent crude eased 79 US cents or 0.9% to US$85.75 a barrel.
Precious metals pulled back from their highest levels since May as the US dollar rallied for the first time in five sessions. Gold dropped US$34.20 or 1.43% to US$2,363.50 an ounce. Silver was lately down 46 US cents or 1.47% at US$30.76.
Key events today:
July consumer sentiment - 10.30 am AEST
June business confidence - 11.30 am
Congressional appearances by US Federal Reserve Chair Powell and Treasury Secretary Yellen - tonight
S&P 500: up 6 points or 0.1%
Dow: down 31 points or 0.08%
Nasdaq: up 51 points or 0.28%
Dollar: down 0.1% to 67.37 US cents
Iron ore (Dalian): down 3.3% to US$113.56
Brent crude: down 79 US cents or 0.9% to US$85.75
Natural gas (US futures): up 1.76% to US$2.37
Gold: down US$34.20 or 1.43% to US$2,363.50
Silver: down 46 US cents or 1.47% to US$30.76
NYSE Arca Gold Bugs: down 0.01%
Bitcoin: down 0.15% to US$56,370
Copper (LME): down 0.47% to US$9,897
Nickel (LME): up 0.43% to US$17,405
Uranium (spot price): steady at US$86.50
Lithium carbonate (China spot): down 0.15% to US$12,414
