Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Negative for a fourth session following losses in the US and amid uncertainty over the geopolitical implications of a brief weekend mercenary mutiny in Russia.
ASX futures: down 16 points or 0.23%
Friday themes:
· US stocks sink under the threat of higher rates and the risk of a recession.
· A broad pullback lowers more than 400 of the S&P 500's component stocks.
· The S&P 500 sheds 1.4% for the week, breaking a run of five consecutive weekly gains. The Nasdaq's 1.4% loss for the week ends an eight-week win streak. The Dow's three-week win run ends with a 1.7% weekly loss.
· Federal Reserve policy-makers continue to talk up the likelihood of more rate hikes.San Fran Fed president Daly says two more hikes are "very reasonable". Atlanta Fed president Barkin said he was unconvinced inflation was trending towards 2%.
· "It has been an overbought market, and giving a little bit back" - Ross Mayfield, investment strategy analyst at Baird.
· All 11 sectors decline. Utilities, property and growth sectors weigh heaviest.
· Commentators warn of a possible "flight to safety" this session after Russia's Wagner Group mercenary army launches a short-lived rebellion against President Putin. While the mutiny was quickly defused, it creates instability in a nuclear power, undermines Putin's grip on power and elevates the risk of further attempts to unseat him.
· “As Monday’s global markets are set to begin trading, investors are laser-focused on whether the short-lived Russia insurrection was only the beginning of a much deeper thunderbolt set to rock geopolitical, economic and market stability” - Greg Bassuk, CEO of AXS Investments.
Key events this week:
· US consumer confidence - Tuesday
· Australia consumer inflation - Wednesday
· Central bank chiefs from leading nations take part in panel discussion - Wednesday
· Australia retail sales - Thursday
· US GDP - Thursday
· China manufacturing/services PMIs - Friday
· US consumer inflation (PCE) - Friday
S&P 500: down 34 points or 0.77%
Dow: down 219 points or 0.65%
Nasdaq: down 138 points or 1.01%
Dollar: up 0.47% to 66.82 US cents
Iron ore (Singapore): down 0.7% to US$110.85 (-2.3% for week)
Brent crude: down 29 US cents or 0.4% to US$73.85 (-3.6% for week)
Gold: up US$5.90 or 0.3% to US$1,929.60 (-2.1% for week)
NYSE Arca Gold Bugs: down 0.29% (3-monthlow)
Copper (LME): down 1.8% to US$8,419.50
Nickel (LME): up 1.25% to US$21,400
Global X Lithium & Battery Tech ETF: down 2.42% (3-week low)
BHP: down 2.61% (US); down2.72% (UK)
Rio Tinto: down 2.46% (US); down 2.14% (UK)
