Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Positive for a fourth day as gains in iron ore and base metals help offset a mixed close on Wall Street.
ASX futures: up 23 points or 0.32%
Overnight themes:
- Wall Street's main indices finish mixed after the Federal Reserve leaves interest rates unchanged but indicates two more hikes this year. The S&P 500 and Nasdaq edge higher in volatile trade. The Dow retreats.
- The central bank leaves the federal funds target rate at a range of 5 - 5.25%, as widely expected. Stocks gyrate after the bank's "dot-plot" projections imply rates will rise another 50 basis points this year.
- Only two of eighteen Fed decision-makers do not anticipate further hikes this year. The bank also raises its interest rate outlook for the next two years to 4.6% next year and 3.4% in 2025 (previous: 4.3% and 3.1%). Market pricing on a rate hike next month rises to 64%.
- "It does seem as if the FOMC members have become even more hawkish since the last meeting, and I think that has taken investors by surprise" - Sam Stovall, Chief Investment Strategist at CFRA Research.
- The rates decision follows a larger-than-expected decline in wholesale inflation. The Producer Price Index drops 0.3% in May. The annual increase of 1.1% is the smallest in more than two years.
- Rate-sensitive growth and property stocks rally. Energy and health are the night's worst-performing sectors.
Key events today:
- May employment report (expected: +18,600 jobs; jobless rate steady at 3.7%) - 11.30 am AEST
- China industrial production, retail sales, unemployment, fixed asset investments - 12 pm
- US retail sales, Empire State manufacturing, unemployment claims - tonight
S&P 500: up four points or 0.08%
Dow: down 233 points or 0.68%
Nasdaq: up 53 points or 0.39%
Dollar: up 0.47% to 68.02 US cents
Iron ore (Dalian): up 1.51% to US$112.30
Brent crude: down US$1.09 or 1.5% to US$73.20
Gold: up US$10.30 or 0.5% to US$1,968.90
NYSE Arca Gold Bugs: down 0.18%
Copper (LME): up 0.78% to US$8,526
Nickel (LME): up 2.44% to US$22,650
Global X Lithium & Battery Tech ETF: down 0.47%
BHP: up 2.13% (US); up 2.16% (UK)
Rio Tinto: up 2.53% (US); up 2.59% (UK)
