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)
