Morning traders. Thanks loungers, especially @Ravgnome.
Outlook for the day: Negative as commodity weakness and the Dow's worst night in nearly a month set the tone ahead of mid-morning domestic inflation data that could alter the market's trajectory.
ASX futures: down 29 points or 0.37%
Overnight themes:
- US stocks finished mixed as a tech rebound lifts the Nasdaq and S&P 500, but weakness in the wider market sent most sectors lower and the Dow down almost 300 points.
- Nvidia continued to dictate the market direction on the Nasdaq and the S&P 500. Both benchmarks broke three-session losing runs as the chip-maker bounced 6.76% after entering a technical correction on Monday.
- The S&P 500 gained 0.39% despite only three of its eleven sectors rising (tech, communication services, energy).
- The Nasdaq Composite bounced 1.26% as chip-makers, Meta, Alphabet and other megacap tech stocks advanced.
- “Tech is again leading the way, and Nvidia is being bought off the dip. This year is still all about tech and AI — maybe a little bit of profit taking over the last few days." - Chris Zaccarelli, chief investment officer at Independent Advisor Alliance (per CNBC).
- The Dow shed 0.76% as just eight of its thirty component companies made headway. Tech gains were outweighed by declines in cyclicals that had benefited from market rotation in recent sessions.
- Cyclicals retreated after a report showed US consumer confidence wilted this month as Americans fretted about the economic outlook. The Conference Board's confidence index slipped to 100.4 from 101.3 in May.
- "In an environment where economic growth is potentially decelerating, which we're seeing signs of, that would tend to benefit higher-quality stocks that have less sensitivity to the economic cycle" - Emily Roland, co-chief investment strategist at John Hancock Investment Management (per Reuters).
- The Dow Transportation Index declined 0.79% to its first loss in three sessions. The Russell 2000 index of small caps shed 0.42%.
- A rising greenback weighed on copper, gold and other US dollar-denominated commodities. Benchmark copper declined 1.29%. Gold futures gave up 0.71%. Copper has fallen more than 10% from last month's record as stocks in London Metal Exchange warehouses hit six-month highs.
- "The China story is bearish, Chinese stimulus isn't working, isn't enough and the property market shows few signs of recovery... [Copper] inventories are also weighing on sentiment" - unnamed metals trader quoted by Reuters.
- Iron ore fell for a fourth session in as seasonal factors in China compounded worries about steel production caps. Benchmark ore dropped 0.69% on the Dalian Commodity Exchange.
- May inflation figures this morning are expected to show consumer prices last month grew 3.8% year-on-year, up from growth of 3.6% in April.
Key events today:
- May inflation report (Consumer Price Index) - 11.30 am AEST
- US new home sales - tonight
S&P 500: up 21 points or 0.39%
Dow: down 299 points or 0.76%
Nasdaq: up 221 points or 1.26%
Dollar: down 0.15% to 66.44 US cents
Iron ore (Dalian): down 0.69% to US$109.53
Brent crude: down US$1 or 1.16% to US$85.01
Natural gas (US futures): down 2.8% to US$2.73
Gold: down US$13.60 or 0.71% to US$2,330.80
Silver: down 63 US cents or 2.14% to US$28.90
NYSE Arca Gold Bugs: down 1.01%
Bitcoin: up 3.56% to US$61,851
Copper (LME): down 1.29% to US$9,536
Nickel (LME): up 0.2% to US$17,235
Uranium (spot price): steady at US$85
Lithium carbonate (China spot): down 1.16% to US$12,623
Global X Lithium & Battery Tech ETF: down 1.74%
BHP: up 0.49% (US); up 0.31% (UK)
Rio Tinto: up 0.11% (US); up 0.21% (UK)
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Morning traders. Thanks loungers, especially @Ravgnome. Outlook...
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