Morning traders. Thanks loungers, especially @Ravgnome and...

Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.

Outlook for the day: Positive following fresh 14-month highs in the US and strong gains for iron ore, industrial metals and crude.

ASX futures: up 42 points or 0.59%

Overnight themes:

• US stocks rally as a slowdown in inflation gives the Federal Reserve breathing space to leave interest rates on hold tonight.
• Consumer prices increase just 0.1% last month, bringing the year-on-year price increase down to 4% from 4.9% in April. The annual rise is the weakest in two years. However, core inflation remains stubbornly high at 5.3% (+0.4% for the month).
• Stocks rise as the odds on a rates pause tonight climb to 93%.
• "If the Fed was looking for data to point to to say, 'We're going to pause in June' I think they got it today" - Liz Young, head of investment strategy, SoFi.
• Ten of 11 US sectors advance, led by materials (+2.33%) and industrials (+1.16%). Utilities dips less than 0.1%.
• Iron ore and base metals rally on hopes for increased demand after China's central bank lowers a key short-term lending rate to stimulate the economy. The People's Bank of China cuts the seven-day reverse repo rate to 1.9% from 2%.

Key event today:

• US interest rate decision - tonight

S&P 500: up 30 points or 0.69%

Dow: up 146 points or 0.43%

Nasdaq: up 111 points or 0.83%

Dollar: up 0.17% to 67.64 US cents

Iron ore (Dalian): up 0.69% to US$112.10

Brent crude: up US$2.45 or 3.4% to US$74.29

Gold: down US$11.10 or 0.6% to US$1,958.60

NYSE Arca Gold Bugs: down 0.56% to 2-week low

Copper (LME): up 1.57% to US$8,441

Nickel (LME): up 3.88% to US$22,110

Global X Lithium & Battery Tech ETF: up 1.89% to 3-month high

BHP: up 3.19% (US); up 2.45% (UK)

Rio Tinto: up 2.92% (US); up 2.66% (UK)