Morning traders. Hope everyone had a great weekend. Thanks loungers, especially @Ravgnome and @Patterns. Let's get back into it:
Outlook for the day: Positive following two days of US gains across the Australian long weekend. Outlook partly moderated by overnight pressure on commodity prices.
ASX futures: up 25 points or 0.35%
Overnight themes:
- The S&P 500 and Nasdaq close at their highest since April 2022 ahead of inflation data tonight and an interest rate decision tomorrow.
- The advance comes as investors anticipate a rates pause following ten straight increases. The odds on no hike reach 76%.
- Tonight's report is expected to show inflation falling back towards 4%, giving the Federal Reserve breathing space.
- Megacaps continue to set the pace. Tesla rises for a 12th session (a record for the stock). Amazon, Apple and Microsoft also advance as the tech sector leads. Energy, utilities and financials decline.
- Th emajor indices also nudge higher on Friday. The Nasdaq seals a 7th straight positive week for the first time since 2019. The S&P 500 rises for a fourth week.
- Oil closes overnight at its lowest since December 2021 amid lacklustre Chinese demand and questions about OPEC's decision to reduce production. Iron ore backs off a ten-week high.
Key events this week:
·Consumer sentiment - 10.30am AEST today
·Business confidence - 11.30am AEST today
·US Consumer Price Index - tonight
·US interest rate decision - Wednesday
·May employment report - Thursday
·Chinese factory output, retail sales, etc - Thursday
·US retail sales - Thursday
·US consumer sentiment - Friday
S&P 500: up 40 points or 0.93% (Friday: +0.11%)
Dow: up 190 points or 0.56% (Friday: +0.13%)
Nasdaq: up 203 points or 1.53% (Friday: +0.16%)
Dollar: up 0.1% to 67.51 US cents
Iron ore (Dalian): down 1.8% to US$109.96 (Friday: +3.4%)
Brent crude: down US$2.95 or 3.9% to US$71.84 (weakest close since December 2021)
Gold: down US$7.50 or 0.4% to US$1,969.70 (Friday: -0.1%)
NYSE Arca Gold Bugs: up 0.07% (Friday: -1.47%)
Copper (LME): down 1% to US$8,288 (Friday: -0.39%)
Nickel (LME): down 0.52% to US$21,040 (Friday: +0.18%)
Global X Lithium & Battery Tech ETF: up 0.68% (Friday: +0.3%)
BHP: down 0.23% (US); down 0.4% (UK)
Rio Tinto: down 1.29% (US); down 1.11% (UK)
