Morning traders. Thanks loungers, especially @Ravgnome.
Outlook for the day: Positive following new highs on Wall Street and a rebound in some commodities.
ASX futures: up 42 points or 0.54%
Overnight themes:
The S&P 500 and Nasdaq hit records as soft payrolls data sharpened rate-cut expectations, and Nvidia led a surge in Artificial Intelligence chip-makers.
A 2.68% rally in tech stocks helped lift the S&P 500 1.18% and the Nasdaq Composite 1.96%. The Dow trailled with a gain of 0.25%, due to its comparatively low exposure to high-flying tech.
Stocks took wing after May private payrolls fell short of expectations, adding to evidence that the labour market is slowing. The private sector added just 152,000 jobs last month, according to ADP's monthly report. Economists had anticipated growth of nearer 175,000.
The odds on a September rate cut rose to 70% following the payrolls report as traders increased their bets that the economy is slowing quickly enough for the Federal Reserve to act. Treasury yields dropped to a two-month low.
"We're seeing the economic data starting to ease up a little bit and the repercussions for that is that you're seeing the pressure on rates come off the boil a little bit mixed in with the potential for weaker economic data, which is a pretty good recipe for the bond market" - Jack Janasiewicz, portfolio manager at Natixis Investment Managers Solutions (per Reuters).
Nvidia soared 5.16% to replace Apple as the world's second-largest company by market capitalisation. The chip-maker is now valued at more than US$3 trillion.
While the rally was driven by tech, cyclical sectors also rebounded. Industrials gained 1%. Materials put on 0.72%.
The night's drags included utilities -0.58%, consumer staples -0.22% and real estate -0.14%.
The energy sector finished near flat despite oil's first rise in six sessions. Brent crude rallied 1.15% to US$78.41a barrel in what City Index market analyst Fawad Razaqzada called an "oversold bounce". Buyers shrugged off an increase in US crude, gasoline and distillate inventories.
“It remains to be seen whether this recovery will last, given ongoing concerns over demand and over the OPEC+ decision to eventually phase out voluntary output cuts at a time when non-OPEC supply is on the rise,” Razaqzada told MarketWatch.
Copper neared a four-week low before reversing to a gain of 0.62% on the London Metal Exchange. The metal hit record levels last month before paring a rally that still has prices up 15% for the year. Nickel slumped to a seven-week low.
Iron ore declined for a fifth session in China as demand doubts dragged benchmark prices to a seven-week low. September ore ended daytime trade 1.84% lower at US$113.86 a metric ton.
Key events today:
Trade balance - 11.30 am AEST
ECB rate decision - tonight
S&P 500: up 63 points or 1.18%
Dow: up 96 points or 0.25%
Nasdaq: up 331 points or 1.96%
Dollar: up 0.05% to 66.48 US cents
Iron ore (Dalian): down 1.84% to US$113.86
Brent crude: up 89 US cents or 1.15% to US$78.41
Natural gas (US futures): up 6.79% to US$2.76
Gold: up US$28.10 or 1.2% to US$2,375.50
Silver: up 42 US cents or 1.44% to US$30
NYSE Arca Gold Bugs: up 1.64%
Bitcoin: up 1.33% to US$71,236
Copper (LME): up 0.62% to US$10,006.50
Nickel (LME): down 1.38% to US$18,600
Uranium (spot price): steady at US$90.25
Lithium carbonate (China spot): down 1.66% to US$14,086
