Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Positive for a second day ahead of the May consumer inflation report this morning. US stocks rally overnight following a week-long retreat.
ASX futures: up 26 points or 0.37%
Overnight themes:
- US stocks rebound as upbeat economic data tempers recession fears.The Dow logs its first advance in seven sessions. The S&P 500 breaks a five-session losing run.
- Consumer confidence and house sales lift to their highest in almost a year and a half. Business spending on capital goods increases by 0.7% in May, beating expectations.
- “All we’ve been hearing about this year is the pending recession, but the truth is the economy is on solid footing and the odds of a recession decrease with each piece of economic data” - Ryan Detrick, chief market strategist, Carson Group.
- Stocks rebound as institutional investors prepare for the end of the half. The Nasdaq is on track for its best first half in 40 years, rising almost 30%. The S&P 500 is up 6.6% since the start of the year and the Dow around 2%.
- Microsoft, Apple and Amazon all advance as growth and mining stocks outperform. The tech sector gains 2.04%.
- The materials sector adds 1.4% following a pledge yesterday for more stimulus measures from China's Premier. Iron ore pops 4.1%, but base metals are mixed and oil and gold retreat.
- Defensive sectors trail. Utilities and health finish little changed.
Key events today:
- May Consumer Price Index report (consensus forecast: drop in year-on-year price growth to 6.1% from 6.8%) - 11.30 am AEST
- Federal Reserve Chair Powell takes part in a panel discussion with other central bank chiefs - tonight
S&P 500: up 50 points or 1.15%
Dow: up 212 points or 0.63%
Nasdaq: up 220 points or 1.65%
Dollar: up 0.2% to 66.87 US cents
Iron ore (Dalian): up 4.11% to US$114.24
Brent crude: down US$1.92 or 2.6% to US$72.26
Gold: down US$10 or 0.5% to US$1,923.80
NYSE Arca Gold Bugs: down 1.26%
Copper (LME): down 0.49% to US$8,350
Nickel (LME): up 2.28% to US$20,840
Global X Lithium & Battery Tech ETF: up 1.63%
BHP: up 1.51% (US); up 1.09% (UK)
Rio Tinto: up 1.82% (US); up 0.58% (UK)
