Morning traders. Thanks loungers, especially @Ravgnome.
Outlook for the day: Positive following gains in the US and a strong rebound in commodity prices.
ASX futures: up 47 points or 0.66%
Overnight themes:
- US stocks rally as investors cheer progress on raising the federal debt limit and bet a slowdown in wage inflation will encourage the Federal Reserve to keep interest rates on hold. The S&P 500 and Nasdaq close at nine-month highs.
- A bill to increase the federal debt ceiling moves to the Senate after passing in the House of Representatives. Lawmakers say a vote is likely this morning, giving the president time to sign off on the legislation before a June 5 deadline.
- “Anytime a big negative or a big potential negative catalyst is removed, it helps remove some uncertainty from the market” - Ross Mayfield, Baird investment strategy analyst.
- Investors find the positives in mixed data from the labour market. Private payrolls increase more than expected last month, climbing 278,000 versus expectations for a gain of around 170,000. First-time claims for jobless benefits edge up 2,000 to 232,000. Importantly, a measure of wage inflation originally estimated at 6.3% in May was revised down to 4.2%.
- "Confidence is falling for raising rates for July" - Ed Moya, senior market analyst at OANDA.
- Iron ore surges almost 6% after Chinese private-sector factory data soothes concerns about weakening demand. Base metals also rebound. Gold trades briefly above US$2,000 an ounce for the first time since mid-May as the US dollar retreats.
Key event today:
- US May jobs report - tonight
S&P 500: up 41 points or 0.99%
Dow: up 153 points or 0.47%
Nasdaq: up 166 points or 1.28%
Dollar: up 0.97% to 65.69 US cents
Iron ore (Dalian): up 5.77% to US$107.49
Brent crude: up US$1.68 or 2.3% to US$74.28
Gold: up US$13.40 or 0.7% to US$1,995.50
NYSE Arca Gold Bugs: up 3.44%
Copper (LME): up 1.76% to US$8,231.50
Nickel (LME): up 3.88% to US$21,425
Global X Lithium & Battery Tech ETF: up 0.76%
BHP: up 2.71% (US); up 1.47% (UK)
Rio Tinto: up 3.37% (US); up 2.17% (UK)
