Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Negative following a second day of falls in the US and declines in iron ore, crude, nickel and gold. The ASX 200 has risen for seven straight sessions, closing yesterday at a two-month high.
ASX futures: down 29 points or 0.4%
Overnight themes:
- US stocks fall for a second night as trade resumes after the Juneteenth long weekend. Commentators blame "profit taking" after the S&P 500 and Nasdaq closed last week at their highest in 14 months.
- “We’ve had a significant run. As we enter a new albeit holiday-shortened week, we’ve got to find credible reasons to continue to grind higher against the forces of negativity that still linger around potential recession" - Art Hogan, chief market strategist at B. Riley Financial.
- Stocks fall as strong housing data raises the prospect of further rate hikes and after fresh Chinese stimulus measures raise questions about the outlook for global growth.
- New housing starts log their biggest surge since 1990. The upswing suggests the housing market may be regaining traction after a rates-induced cooldown.
- China lowers loan prime rates by ten basis points, disappointing some economists who called for bigger cuts. The People's Bank cut policy rates last week.
- Iron ore retreats from a two-month high following the widely-expected China lending cuts. Oil and several base metals also decline. Navigate Commodities managing director Atilla Widnell says traders hoped for bolder moves from Chinese authorities to stimulate demand: "The latest rate decision signals that the [People's Bank of China] will be measured and targeted – highly disappointing for China and iron ore bulls."
- Ten of eleven US sectors fall. Energy and materials hit hardest. Consumer discretionary is the only gainer.
Key events today:
- Testimony from Federal Reserve Chair Powell before the House Financial Services Committee - tonight
S&P 500: down 21 points or 0.47%
Dow: down 245 points or 0.72%
Nasdaq: down 22 points or 0.16%
Dollar: down 0.92% to 67.87 US cents
Iron ore (Dalian): down 0.9% to US$112.47
Brent crude: down 19 US cents or 0.3% to US$75.90
Gold: down US$23.50 or 1.2% to US$1,947.70
NYSE Arca Gold Bugs: down 3.99%
Copper (LME): up 0.3% to US$8,566
Nickel (LME): down 2.53% to US$21,960
Global X Lithium & Battery Tech ETF: down 1.45%
BHP: down 1.28% (US); down 1.04 % (UK)
Rio Tinto: down 2.4% (US); down 1.17% (UK)
